American technology giant Oracle Corporation has reported record customer demand and sales as it plans to double its data centre capacity.
The company, which sells database, cloud computing and enterprise software, said net income jumped 22% to US$2.936 billion (A$4.66 billion) on revenue which rose 6% to $14.1 billion in the three months ended 28 February 2025 (Q3 FY25).
Directors declared a quarterly cash dividend of 50 cents per share, 25% more than the current quarterly dividend, as earnings per share jumped 20% to $1.02.
This pushed net income in the first nine months of FY25 up 123% to $9.016 billion on revenue that grew 7% to $41.496 billion.
CEO Safra Catz said Oracle signed record sales contracts of more than $48 billion in Q3, pushing remaining performance obligations (RPOs), which is revenue contracted but not recognised, up 63% to more than $130 billion.
“We have now signed cloud agreements with several world leading technology companies including: OpenAI, xAI, Meta, NVIDIA and AMD,” Catz said in a news release.
He expected the sales backlog would help drive a 15% increase in revenue in the next fiscal year and the RPO would continue to grow rapidly.
All components of revenue increased inQ3, with Cloud rising 23% to $6.2 billion, Cloud Infrastructure 49% to $2.7 billion, Cloud Application 9% to $3.6 billion, Fusion Cloud ERP 16% to $900 million, and NetSuite Cloud ERP 16% to $900 million.
"We are on schedule to double our data centre capacity this calendar year," Chairman and Chief Technology Officer Larry Ellison said in the release.
Ellison said customer demand was at record levels and Database MultiCloud revenue from Microsoft, Google and Amazon soared 92% in the last three months.
Graphic processing unit consumption for artificial intelligence (AI) training grew 244% in the last 12 months and the demand for AI inferencing on customers' private data was enormous.
Oracle said the new Oracle AI Data Platform product would make it easy for customers to use any of the world's leading AI models to analyse private data while keeping it private and secure.
Oracle shares (NYSE: ORCL) closed $6.37, or 4.11%, lower at $148.79 on Monday, because the result was slightly below market expectations, giving the Austin, Texas-based company a market value of $416.16 billion, before slipping further in after hours trading to $143.90.
