Key Takeaways
- Oracle is set to release its fourth-quarter earnings report for the 2024 fiscal year after the bell on Tuesday.
- The company is expected to report that revenue gained from the year-ago period while net income stayed roughly flat, according to analyst estimates compiled by Visible Alpha.
- Investors will likely be watching for sustained momentum in Oracle’s cloud infrastructure business.
- Oracle could also touch on its position in helping organizations build sovereign AI systems.
Oracle (ORCL) is set to report earnings for the fourth quarter of fiscal 2024 after the bell on Tuesday, with investors watching for cloud infrastructure growth and strategy updates about sovereign artificial intelligence (AI).
Analysts project Oracle’s revenue to be $14.57 billion for the final quarter of fiscal 2024, up from the previous quarter and the same period in fiscal 2023, according to estimates compiled by Visible Alpha.
Net income is expected to be $3.33 billion, up from the quarter prior, and roughly flat from the year-ago period. Analysts anticipate diluted earnings per share (EPS) of $1.18, up from 85 cents the previous quarter and compared to $1.19 a year earlier.
| Analyst Estimates for Q4 FY 2024 | Q3 FY 2024 | Q4 FY 2023 | |
| Revenue | $14.57 billion | $13.28 billion | $13.84 billion |
| Diluted Earnings Per Share | $1.18 | 85 cents | $1.19 |
| Net Income | $3.33 billion | $2.4 billion | $3.32 |
Key Metric: Cloud Infrastructure Momentum
Oracle reported in March that its cloud infrastructure drove the company’s remaining performance obligations to a record high on strong demand in the AI era.
The company said that large new cloud infrastructure contracts fueled the record quarter, with Oracle CEO Safra Catz saying she expects Oracle will “continue receiving large contracts reserving cloud infrastructure capacity.”
The CEO indicated that while demand for Oracle’s “Gen2 AI infrastructure substantially exceeds supply,” the company is “opening new and expanding existing cloud datacenters very, very rapidly.”
Oracle could announce new cloud infrastructure customers and provide updates about how its existing contracts have evolved as customers adapt their AI strategies, especially as big tech companies announce increased capital expenditures to invest in AI.
Mizuho analysts said, “Oracle is not immune to macro concerns recently cited by enterprise software, but FQ4 consensus appears conservative and Oracle could exceed estimates driven by OCI momentum and strength in certain applications, offset by license weakness.”
Business Spotlight: AI Partnerships and Updates
Oracle recently announced partnerships with companies leading AI innovation including Microsoft (MSFT) and Palantir Technologies (PLTR).
Through these partnerships, Oracle has been able to benefit from AI monetization through enterprise offerings. The company has also been able to focus on developing its edge to address key issues in the AI era like sovereign AI.
Oracle could be well-positioned to help governments, companies, and organizations that want to keep their AI sovereign, meaning they produce AI using their own infrastructure and data. AI sovereignty has come into focus amid data privacy concerns.
In its earnings call, Oracle could provide an update on how sovereign AI is benefiting the company and what makes Oracle stand out from others when organizations are looking to build sovereign AI systems.
Oracle shares have gained over 19% since the start of the year, at $125.92 as of Friday’s close.