Oracle Financial Services Software stock rises 8% to record high after parent firm posts strong results

Oracle Financial Services Software stock surged 8% to a new high after parent Oracle Corp's strong earnings and robust guidance for FY25.

Pranati Deva
First Published13 Jun 2024, 02:02 PM IST
Oracle Corp's stock also rose 13% with a forecast of double-digit revenue growth for FY25.
Oracle Corp’s stock also rose 13% with a forecast of double-digit revenue growth for FY25.

Shares of Oracle Financial Services Software (Oracle) surged around 8 percent to their new high on Thursday after its parent company Oracle Corp posted strong earnings for the March quarter as well as robust guidance for FY25.

Oracle Corp.'s stock also rallied as much as 13 percent on Wednesday's regular trading on Wall Street.

Oracle Corp announced a robust forecast for fiscal 2025, expecting revenue growth in double digits, surpassing analysts' expectations. Meanwhile, it expects a total revenue growth of 6 percent for fiscal 2024. The company expects first-quarter revenue to grow between 5 percent and 7 percent, while analysts estimate a 7.6 percent rise.

Read here: Stocks to buy: HDFC, ITC, Reliance among top largecap conviction picks by PL

Additionally, Oracle revealed a strategic partnership with OpenAI, the creator of ChatGPT, and Google Cloud. This collaboration aims to expand Oracle's cloud infrastructure offerings, enhancing its service capabilities for customers.

The stock rose as much as 7.9 percent to its new high of 9,440.90. It has now soared 155 percent from its 52-week low of 3,708.50, hit on June 26, 2023. The scrip has also given multibagger returns in the last 1 year, rallying over 130 percent whereas in 2024 YTD, it has surged 124 percent.

Read here: HCC gained 31% in June so far, up 162% in last one year; is it a good time to buy?

It has advanced 26 percent just in June, after a 1.8 percent and 13.4 percent fall in May and April, respectively. Meanwhile, it was positive for the first 3 months of the year, rising 14.3 percent in March, 17.6 percent in February and 55 percent in January.

"I expect that each successive quarter should grow faster than the previous quarter as OCI (Oracle Cloud Infrastructure) capacity begins to catch up with demand. In Q4 alone, Oracle signed over 30 AI sales contracts totaling more than $12.5 billion, including one with OpenAI to train ChatGPT in Oracle Cloud," CEO Safra Catz said.

Read here: Ddev Plastiks Industries jumps 130% in 3 months; should you buy, sell or hold?

Meanwhile, in the quarter ended May 31, Oracle reported a 3 percent year-over-year increase in revenue, as stated in their recent announcement. However, net income declined to $3.14 billion, equivalent to $1.11 per share, from $3.32 billion, or $1.19 per share, in the same quarter last year.

Moreover, Oracle also reported that its total remaining performance obligations, which represent future contracted sales, surged by 44 percent to reach $98 billion for the quarter ending on May 31. This figure significantly exceeded the average estimate of $73.9 billion.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess

News in Numbers

Numbers that help you understand news better
1.4%

₹773 Cr

₹2,705 Cr

₹1 Cr

₹14,370 Cr

₹5.74 T

First Published:13 Jun 2024, 02:02 PM IST
HomeMarketsStock MarketsOracle Financial Services Software stock rises 8% to record high after parent firm posts strong results

Most Active Stocks

Indian Oil Corporation

166.90
03:58 PM | 12 JUL 2024
-7.6 (-4.36%)

Tata Steel

168.70
03:58 PM | 12 JUL 2024
-0.3 (-0.18%)

Bharat Electronics

333.30
03:59 PM | 12 JUL 2024
-2.25 (-0.67%)

Wipro

560.05
03:56 PM | 12 JUL 2024
25.7 (4.81%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

KPIT Technologies

1,864.00
03:57 PM | 12 JUL 2024
154.25 (9.02%)

Inox Wind

171.90
03:59 PM | 12 JUL 2024
13.85 (8.76%)

Zensar Technologies

768.20
03:29 PM | 12 JUL 2024
50.45 (7.03%)

Coforge

5,950.05
03:29 PM | 12 JUL 2024
386.65 (6.95%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,481.00218.00
    Chennai
    73,972.00-727.00
    Delhi
    74,771.00-218.00
    Kolkata
    73,972.00-218.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.76/L0.01
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanMint Shorts