Oracle’s Sales Miss Estimates. Its CEO Expects AI-Driven Growth. | Global News Avenue

Oracle bone inscriptions (ORCL) reported sales for the third fiscal year, which missed analyst expectations, but executives said they expect AI-driven growth in the coming fiscal year.

The tech giant’s quarterly revenue was 6% year-on-year to $14.1 billion, slightly below the analyst consensus of the visible Alpha compilation. Adjusted earnings were $4.2 billion, or $1.47 per share, up from $3.98 billion or $1.41 per share a year ago, but no estimates were made.

The company also announced a 25% increase in quarterly dividendincrease it from the 40 cents price to 50 cents per share.

Executives predict AI growth

Oracle CEO Safra Catz said revenue is expected to grow 15% in fiscal 2026 starting in June, highlighting the cloud agreement with AI leaders including NVIDA (NVDA), meta(Yuan), Openai and Xai.

The company gradually doubles data center capacity during this calendar year, Chief Technical Officer Larry Ellison said, adding: “Customer demand is at record levels.” Ellison said Oracle connects AI models such as Openai’s Chatgpt, Xai’s Grok and Meta’s Llama to the latest version of Oracle’s database.

In January, Oracle, and Openai and Soft Silverannounced a joint venture called Star Gate put up AI U.S. companies said they will commit to a $100 billion start and make $500 billion over the next four years.

Oracle’s shares rose 3.5% on Monday after the issuance. They have increased by one third of their value in the past year at the end of the past year.