Cloud Revenue

Oracle’s shares fell 7% after the company posted Q4 revenue of $16.06 billion, missing the $16.21 billion forecast, though earnings per share beat expectations at $2.26. Cloud revenue rose to $7.98 billion and remaining performance obligations jumped 438% to $523 billion, driven by contracts with Meta, Nvidia and others. The firm announced co‑CEO appointments for Clay Magouyrk and Mike Sicilia, unveiled AI agents for enterprise functions, and reaffirmed a “chip‑neutral” stance after selling its Ampere stake. Investors are watching Oracle’s AI‑infrastructure expansion amid rising debt concerns.

SAP is making a big push in enterprise AI, CEO Christian Klein cites AI as key to customer deals. Q3 cloud backlog surged 23% to €18.8B, showing demand for AI-infused cloud services. While Q3 revenue rose 7% to €9.08B, it slightly missed estimates. Deutsche Bank maintains a positive outlook, but SAP is guiding towards the lower end of its cloud revenue forecast. Klein emphasizes focusing on practical AI applications and value creation, stressing the importance of real-world adoption. SAP aims to transform into an AI-first entity.