Oracle's Q1 Revenue Declines as It Promotes AI Cloud Contracts
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Oracle Corporation's first fiscal quarter revenue fell short of expectations, causing its stock price to drop by 9%. The company is accelerating the migration of Cerner to the cloud, which has slowed its revenue growth. Oracle is heavily promoting its AI cloud contracts, having already signed contracts worth over $4 billion. Additionally, the company announced new AI capabilities for its database hardware, Micros point-of-sale terminals, and Fusion Cloud Human Capital Management software. Oracle's cloud infrastructure revenue grew by 66%, but the growth rate slowed compared to the previous quarter. Oracle's CEO, Safra Catz, stated that the transition has led to short-term resistance in sales growth rates, as customers shift from initially recognized license purchases to consistently recognized cloud subscription models.
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