(Reuters) -Oracle beat first-quarter revenue estimates on Monday, boosted by growing demand for its cloud offerings from companies deploying artificial intelligence.
Shares of the Austin, Texas-based company rose 5.2% in trading after the bell.
Oracle (NYSE:ORCL)’s push into the cloud computing market is showing promising results and the company has started narrowing the gap with market leaders Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) Web Services.
Oracle Cloud Infrastructure (OCI) remains strong and sustained demand for cloud compute is expected, particularly in AI applications.
The company also announced a partnership with AWS, Oracle Database@AWS, that allows customers to access Oracle Autonomous Database and Oracle Exadata Database Service within AWS.
Analysts believe Oracle’s resilient, sticky and largely recurring revenue stream positions the company well in a post-pandemic environment. They are encouraged by the underlying organic recurring revenue growth trend and believe the cloud transition continues to advance.
Oracle’s largest unit, cloud services and license support, posted a 10% rise in first quarter revenue to $10.52 billion, from $9.55 billion a year earlier.
Revenue for the quarter stood at $13.31 billion, compared with analysts’ estimates of $13.23 billion, according to LSEG data.
