Balanced News: Oracle comes up short on revenue but touts AI cloud contracts

Oracle shares fell by 9% in after-hours trading after the company reported lower-than-expected revenue and revenue guidance. The company’s revenue grew by 9% in the fiscal first quarter, with net income rising to $2.42 billion. Oracle attributed the slower revenue growth to the transition of Cerner, which it acquired for $28.2 billion in June, to the cloud. The company’s cloud services and license support segment saw revenue of $9.55 billion, while the cloud license and on-premises license segment posted revenue of $809 million. Oracle’s cloud infrastructure revenue increased by 66%. Larry Ellison, the company’s chair and technology chief, stated that AI development companies have signed contracts for over $4 billion of capacity in Oracle’s Gen2 Cloud.