Oracle (NYSE: ORCL) recently released its full-year results for 2024, with key financial highlights including revenue of $53 billion, a 6% increase from the previous fiscal year. Net revenue also saw a significant jump, up 23% to $10.5 billion. The company’s profit margin increased to 20% from 17% in fiscal 2023, driven by higher revenues. Earnings per share (EPS) came in at $3.82, compared to $3.15 in the previous fiscal year.
Despite revenue meeting analyst estimates, EPS fell short by 2.0%. The cloud and licensing segment was the main driver of revenue, accounting for $44.5 billion or 84% of total revenue. Research and Development (R&D) costs were the largest operating expense, totaling $8.92 billion or 33% of total expenses. Looking ahead, Oracle is projected to achieve annual revenue growth of 9.5% over the next three years, slightly below the projected 12% growth for the software industry in the US.
The company’s share price has remained relatively stable compared to the previous week. While Oracle’s financial performance appears robust, there are still risks to consider. Investors should be aware of potential warning signs for the company and conduct thorough analysis to determine whether the stock is overvalued or undervalued.
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