Executive Vice President for Corporate Operations Doug Kehring Reiterates Forecast

Oracle has reaffirmed its commitment to achieving a revenue target of $65 billion by the end of its fiscal year in May 2026. During the annual Oracle Cloud World conference in Las Vegas, Executive Vice President for Corporate Operations, Doug Kehring, reiterated the company's forecast of $65 billion in revenue, 45% operating margins, and a minimum of 10% annual earnings per share growth by FY 2026. Kehring expressed confidence in the company's ability to meet these targets, stating, "We remain confident we are on track to meet those targets."

Kehring went on to share that Oracle has projected an 8% revenue growth for fiscal year 2024, excluding the contribution from the Cerner electronic health records business. This estimate rises to 7% when including Cerner. He also mentioned that the non-GAAP operating margin for FY 2024 is expected to reach 43%, representing a one-percentage-point increase from the previous fiscal year.

CEO Safra Catz Sees Stock Selloff as an Opportunity

Oracle's CEO, Safra Catz, addressed concerns about the recent selloff of the company's shares during a Q&A session. Despite experiencing the largest single-day decline in the stock price in two decades, Catz viewed this as an opportunity to repurchase stock. She stated, "We continue to go private one share at a time" and emphasized her inability to predict the market accurately.

Catz also highlighted the strong demand for capacity in Oracle's cloud computing business, expressing satisfaction with the rate at which customers are reaching out to the company. She said, "We are overwhelmed by demand...we're really happy here. People cannot get to us fast enough. That's what's happening. We're very satisfied with how we're performing this year."

Oracle Founder Larry Ellison Discusses Confidence in Future Forecast

Oracle's founder and Chief Technology Officer, Larry Ellison, joined the event and addressed questions regarding his confidence in the company's ability to reach its FY 2026 forecast. While specific details of his response were not mentioned, Ellison's presence suggests his unwavering belief in Oracle's trajectory.

In summary, Oracle remains steadfast in its aim to reach $65 billion in revenue by 2026. Executives at the company express confidence in meeting this target, with additional focus on revenue growth, operating margins, and the demand for their cloud computing services. Despite recent stock market fluctuations, Oracle continues to view these challenges as opportunities for repurchasing stock and further strengthening their position in the market.

Oracle's Rapid Transformation in the Cloud Computing Industry

Larry Ellison, the founder and CEO of Oracle, has expressed his excitement about the company's shift and growth in the cloud computing industry. Ellison emphasized that their goals have significantly evolved over the years and they have successfully secured several large-scale deals worth billions of dollars.

According to Ellison, Oracle's largest customer used to pay them around $120 million annually. However, the company's recent achievements have taken them far beyond that level. Ellison proudly announced, "Now, it would be unusual for us to not sign a single deal over a billion dollars in just one quarter. We are proud to have multiple billion dollar customers now."

One such remarkable accomplishment is the $1.5 billion contract Oracle secured with one of the top three cloud computing vendors (Amazon, Microsoft, or Alphabet) for AI training in the cloud. Oracle won the deal by offering lower prices than its competitors' costs. Ellison further added that their AI training services are not only twice as fast as other clouds but also come at half the price. "In fact," he confidently stated, "it is much, much better than that. The potential for growth seems limitless at this point."

During a discussion about Oracle's ability to acquire enough GPU chips from Nvidia to expand its cloud computing business, Ellison shared an interesting anecdote. He recounted a recent dinner he had at Nobu in Palo Alto with Nvidia CEO Jensen Huang and Tesla CEO Elon Musk. According to Ellison, he and Musk spent the evening enjoying sushi and "begging" for chips. Although Oracle is considered to be ahead of its competitors, Ellison mentioned that there is still a shortage of chips available in the market.

Despite the overall selloff in tech shares, Oracle's stock experienced a minor 3.1% drop, closing at $109.43 on Thursday.

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