Synopsis:
Oracle Financial’s shares rose 10 percent after its parent, Oracle Corp, reported strong quarterly results, driven by major deals and a robust outlook projecting $144 billion in cloud revenue by 2030.
During Wednesday’s trading session, shares of a world leader in providing products and services to the financial services industry witnessed a sharp rise of around 10.2 percent on the stock exchanges. What triggered this significant jump? Let’s explore the details in this article.
At 02:07 p.m., the shares of Oracle Financial Services Software Limited were trading in the green at Rs. 9,260 on BSE, up by around 10 percent, as against its previous closing price of Rs. 8,411.35, with a market cap of Rs. 80,452 crores. The stock has delivered negative returns of around 18 percent in the last one year, but has gained by over 10 percent in the last one month.
What’s the News
Oracle Financial Services Software Limited is benefiting from the strong performance of its parent company, Oracle Corporation, which reported impressive quarterly results after US market hours on Tuesday. Following the announcement, Oracle Corp’s shares jumped by as much as 35 percent on Wednesday, 10th September, supported by a significant growth in bookings and a strong outlook for its cloud infrastructure business.
In its first quarter, Oracle Corp reported a 359 percent surge in remaining performance obligations, reaching $455 billion, a fourfold increase compared to the same period last year. This growth was driven by substantial deals, including a partnership with OpenAI for 4.5 GW of data center capacity, as well as agreements with TikTok and Nvidia.
Additionally, CEO Safra Catz noted that the recent agreements are expected to rapidly support Oracle’s cloud infrastructure segment, which is projected to grow 77 percent for the current financial year to reach $18 billion, up from the previous estimate of 70 percent, and further expand eight times over the next five years to hit $144 billion by May 2030.
Oracle Corp has also secured four multi-billion dollar deals across three different clients and anticipates additional agreements in the near future, pushing its remaining performance obligations beyond $500 billion, according to CEO Catz.
Although Oracle reported $14.93 billion in revenue, slightly missing the expected $15.03 billion, the strong deal momentum and upgraded guidance propelled its shares to record levels.
Financials & more
Oracle Financial reported a marginal growth in its revenue from operations, showing a year-on-year increase of around 6 percent from Rs. 1,741 crores in Q1 FY25 to Rs. 1,852 crores in Q1 FY26. Likewise, its net profit increased during the same period from Rs. 617 crores to Rs. 642 crores, representing a slight rise of around 4 percent YoY.
Oracle Financial Services Software Limited is principally engaged in the business of providing information technology solutions to the financial services industry worldwide. The company has a suite of banking products, which caters to the transaction processing and compliance needs of corporate, retail, investment banking, treasury operations and data warehousing.
Written by Shivani Singh
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