ZACKSยท2025-06-17 16:15Core Insights - The Q2 earnings cycle is set to accelerate with major banks reporting soon, but earnings season is ongoing with several companies already having reported their results [1] Group 1: Oracle (ORCL) - Oracle reported sales of $15.9 billion and adjusted EPS of $1.70, exceeding consensus expectations with growth rates of 11% and 4.3% respectively [5] - Remaining performance obligations (RPOs) increased by 41% year-over-year, indicating strong demand for Oracle's services [7] - CEO Safra Catz projected total cloud growth rate to rise from 24% in FY25 to over 40% in FY26, with cloud infrastructure growth expected to increase from 50% in FY25 to over 70% in FY26 [9] - Analysts have raised sales expectations significantly following Oracle's earnings release, reflecting a strong outlook for the company [9] Group 2: Microsoft (MSFT) - Microsoft reported EPS of $3.46 and sales of $70.0 billion, surpassing consensus expectations with growth rates of 13% and 18% respectively [11] - Microsoft Cloud revenue grew by 20% year-over-year to $42.4 billion, with Intelligent Cloud revenue (including Azure) totaling $26.8 billion, up 21% from the previous year [13] Group 3: Amazon (AMZN) - Amazon's AWS segment reported sales of $29.3 billion, reflecting a 17% year-over-year increase, indicating solid momentum [15] - Amazon signed several new AWS deals with major companies, including Adobe, Uber, and Cisco, suggesting continued demand for its services [16] - Analysts have a bullish outlook on Amazon's current fiscal year, with the Zacks Consensus EPS estimate at $6.17, representing a 12% year-over-year growth [19] Group 4: Overall Cloud Momentum - The strong results from Oracle, Microsoft, and Amazon confirm the robust demand and momentum within the cloud services sector [21][22]