Oracle Financial shares hit a record high after parent reports strong results in the US

Shares of Oracle Financial Services Ltd. surged as much as 7% on Thursday to ₹9,370 after its parent Oracle Corp. reported strong earnings overnight in the US.

The stock crossed its earlier record high of ₹9,023, which it had it on April 1 this year.

The stock is surging after its parent company, Oracle Corp. reported better-than-expected bookings and announced partnership deals with its tech rivals. Oracle Corp.'s stock gained as much as 13% on Wednesday's regular trading on Wall Street.

Oracle mentioned that its total remaining performing obligations, a measure of future contracted sales, increased by 44% during the quarter to $98 billion for the quarter that ended on May 31, surpassing the average estimate of $73.9 billion by a big margin.

Revenue from Oracle's cloud unit that rents computing power and storage also increased by 42% from last year to $2 billion. Total revenue had increased by 3.3% to $14.3 billion.

Post its March quarter results, Oracle Financial had announced a dividend of ₹240 per share, which was the highest since 2014, when it had announced a dividend of ₹485 per share.

Last year, Oracle Financial Services had announced a dividend of ₹225 per share, following a ₹190 payout in 2022 and a ₹200 payout in 2021.

Since 2014, Oracle Financial has declared dividends worth ₹2,100 per share for its shareholders.

Oracle’s results have been buffeted by its health unit, which includes Cerner, the electronic health records business Oracle acquired in June 2022 for $28 billion. The company is currently focused on transitioning the legacy software business to the cloud, though it has faced setbacks such as customer departures and the renegotiation of a flagship federal contract.

Shares of Oracle Financial Services are trading 6.8% higher at ₹9,335. The stock has more than doubled in 2024.