80.2% 80.3%. So a beat on both the top and bottom lines. These very important numbers in terms of their cloud revenue, 32.91% billion estimates, we're calling for 32.39%.So another beat there. Azure and other cloud revenue FX. That's up 38% right in line with the estimates here.So they are posting beats across the board. They also crossed the $50 billion mark for cloud revenue this quarter for the first time. These numbers coming across.And as we're looking at the move the move is to the downside. We're dow ...

The company reported strong growth in Azure cloud-computing segment and an earnings-per-share boost from OpenAI deal ...

Core Insights - Oracle has successfully transitioned from being a leader in relational databases to a competitive player in the cloud industry, focusing on high-performance computing workloads [1][2] - The company has secured a significant $300 billion deal with OpenAI, contributing to a backlog of $523 billion, which positions it to increase market share [3] - Oracle is currently the fifth-largest cloud provider, with a market share increase from 2% to 3% [3] Industry Overview - The cloud industry is estimated to be worth $944 billion, with a projected compound annual growth rate (CAGR) of 16% from 2026 to 2033, potentially reaching over $3.3 trillion [4] Financial Performance - In the first half of fiscal 2026, Oracle's cloud segment generated over $15 billion in revenue, marking a 31% year-over-year increase [6] - Overall revenue for Oracle reached $31 billion, a 13% annual increase, with the cloud segment accounting for 49% of total revenue [7] - Net income for the first half of fiscal 2026 rose to $9.1 billion, up from $6.1 billion in the previous year [7] Future Projections - Analysts forecast a 17% revenue growth for fiscal 2026 and 29% for the following year, indicating positive momentum for Oracle's stock [7] - Despite a debt of $108 billion, Oracle's P/E ratio of 33 is close to the S&P 500 average, suggesting that investors may overlook the debt due to accelerating revenue growth [8]

​Flex Ltd. (NASDAQ:FLEX) is one of the High-Flying Tech Stocks to Buy. Wall Street has a positive outlook on the stock. Recently, on January 14, Melissa Fairbanks from Raymond James upgraded the stock from Hold to Buy with a $75 price target. Earlier on January 13, Tim Long from Barclays reiterated a Buy rating on Flex Ltd. (NASDAQ:FLEX) but lowered the price target from $78 to $71. ​Melissa from Raymond James noted that her positive outlook is based on the strong position of Flex in the cloud and AI inf ...

Core Insights - The rapid growth of AI and cloud computing is changing data center power requirements, emphasizing reliability, speed of deployment, and proximity to load alongside cost and sustainability [1][2] Group 1: FuelCell Energy (FCEL) - FuelCell Energy is focusing on deployable carbonate fuel cell systems to address immediate power demands from data centers facing grid constraints [3] - The company's modular 1.25-megawatt fuel cell platforms allow for incremental capacity scaling, providing continuous baseload power with low emissions and operational flexibility [4] - FCEL is exploring financing opportunities, including a non-binding letter of intent for up to 450 MW of deployments, indicating potential near-term growth linked to data center expansion [5] - FCEL shares have seen significant price movement, increasing over 80% in the past six months, reflecting renewed interest in its technology [9][10] - The company trades at a price-to-book ratio of less than 1, indicating a valuation anchored to its operational business and ongoing customer discussions [13] - Earnings outlook for FCEL is improving, with better-than-expected results in recent quarters, suggesting stabilizing execution [17] Group 2: Oklo Inc. (OKLO) - Oklo is pursuing a long-term strategy with advanced nuclear reactors, recently gaining credibility through an agreement with Meta Platforms for a 1.2-gigawatt nuclear campus [6][7] - The timeline for OKLO's project includes pre-construction activities starting in 2026, with operational phases expected around 2030 and full delivery by 2034 [7] - OKLO remains pre-revenue, with significant execution risks and regulatory hurdles, leading to volatile investor sentiment [8][10] - The company's shares surged over 45% following the META agreement but have since experienced a pullback, highlighting the speculative nature of its stock [10] - OKLO trades at around 11 times book value despite having no commercial revenues, reflecting high expectations and limited margin for delays [12] - Earnings outlook for OKLO is negative, with losses expected to widen before narrowing later in the decade, reinforcing execution risk [15]

The last 52 weeks have been relatively volatile for Microsoft (MSFT) stock, with muted returns of 7.4%. Further, from highs of $555.45, there has been a meaningful correction, and MSFT stock currently trades at about $481. Amidst this volatility, there have been few positive fundamental developments for Microsoft, making the stock attractive. Recently, Microsoft released its artificial intelligence accelerator chip, Maia 200. More News from Barchart The company’s executive vice president of cloud and A ...

Financial Data and Key Metrics Changes - Total revenue for Q2 Fiscal Year 2026 was $318 million, representing a 14% year-over-year increase and exceeding guidance [15][23] - Earnings per share (EPS) was $0.26, up from $0.21 in the prior year quarter, marking a 24% year-over-year improvement [15][21] - SaaS ARR grew by 25% year-over-year, reaching $227 million, driven by strong demand for Platform One subscriptions [5][15] - Non-GAAP gross margin increased to 62%, up 70 basis points from the previous quarter [17][21] Business Line Data and Key Metrics Changes - Product revenue increased double digits year-over-year for the fourth consecutive quarter, indicating strong demand across all verticals [5][15] - Subscription and support revenue reached $120 million, up 12% year-over-year [16] - Platform One bookings were significantly ahead of targets, contributing to accelerating year-over-year performance in subscription bookings [15][21] Market Data and Key Metrics Changes - The company has seen strong revenue growth across all regions, indicating improved alignment between go-to-market teams and robust demand for IT infrastructure [16] - The company closed 34 deals over $1 million, showcasing confidence in its technology and ability to win competitive situations [7][9] - The company is experiencing strong momentum in the EMEA region, with expectations for government spending to return, which could serve as a tailwind for future growth [56] Company Strategy and Development Direction - The company is focused on leveraging its AI-powered platform to drive growth and market share, with a unique agentic AI core that differentiates it from competitors [8][34] - The company aims to capitalize on the ongoing innovation in networking technology, particularly with the introduction of Wi-Fi 7 and cloud choice solutions [9][12] - The company is enhancing its partner program to simplify deal registration and improve profitability for partners, which is expected to drive further growth [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand environment, citing low elasticity of demand for networking infrastructure, which allows for price flexibility [13] - The company anticipates continued revenue growth, with expectations of profitability growth around 20% on double-digit revenue growth for the year [14][21] - Management highlighted the importance of operational agility in navigating supply chain challenges and maintaining customer demand [13][18] Other Important Information - The company has implemented a price increase of 7%, which has not significantly impacted customer demand, indicating resilience in pricing [44][46] - The company is actively seeking alternative sources for components to mitigate supply chain issues, demonstrating a proactive approach to operational challenges [47] Q&A Session Summary Question: Evidence of Share Gain - Management uses third-party analysts to track market share and has seen growth at three times the rate of competitors, indicating strong performance in the enterprise networking space [26][27] Question: AI's Importance - AI remains a top priority for customers, and the company is positioned to leverage its unique AI platform to drive better business outcomes [32][34] Question: Competitive Displacement - The company is often replacing both Wi-Fi and switching components in competitive displacements, showcasing its unique solutions [40] Question: Customer Reaction to Price Increases - Customers have shown resilience to price increases, with networking being a non-negotiable need for organizations [44][46] Question: EMEA Sales Strength - The company has not yet fully benefited from regulatory changes regarding data sovereignty but anticipates positive impacts in the future [55][56] Question: Professional Services Margins - Professional services have lower margins compared to subscription services, impacting overall margin profiles in the short term [78][80] Question: Future Pricing Impact - Management expects pricing adjustments to positively impact margins in the future, particularly as product margins improve [88][90]

Financial Data and Key Metrics Changes - Total revenue for Q2 2026 was $318 million, representing a 14% year-over-year increase and exceeding guidance [14] - Earnings per share (EPS) rose to $0.26, a 24% improvement from $0.21 in the prior year quarter [14] - Non-GAAP gross margin increased to 62%, up 70 basis points from the previous quarter [16] - Adjusted EBITDA was $52.4 million, with an adjusted EBITDA margin of 16.5% [19] Business Line Data and Key Metrics Changes - Product revenue increased double digits year-over-year for the fourth consecutive quarter [4] - SaaS ARR grew by 25% year-over-year, reaching $227 million [4] - Subscription and support revenue reached $120 million, up 12% year-over-year [15] Market Data and Key Metrics Changes - The company experienced strong revenue growth across all regions, indicating robust demand for critical IT infrastructure [15] - The company closed 34 deals over $1 million, showcasing its ability to win large enterprise projects [5] - The company noted strong momentum in the EMEA region, with record sales attributed to regulatory requirements around data sovereignty [52] Company Strategy and Development Direction - The company aims to accelerate its leadership position in the market, driven by innovation and competitive differentiation [7] - The introduction of the Extreme Partner First program aims to enhance partner profitability and streamline deal registration [9] - The company is focused on moving upmarket and winning larger enterprise networking projects, leveraging its unique technology [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand environment, citing low elasticity of demand for networking infrastructure [11] - The company anticipates continued growth in profit faster than revenue, with expected profitability growth of around 20% [12] - Management highlighted the importance of AI in customer conversations and the company's unique agentic AI platform as a competitive advantage [30] Other Important Information - The company is actively managing supply chain challenges and has implemented a replacement strategy for components [11] - The company expects to see a significant multi-year growth opportunity due to competitive displacements in the market [10] Q&A Session Summary Question: Evidence of share gain and impact of restructuring - Management uses third-party analysts to track share gains and has confidence in their booking outlook due to recent restructuring efforts [24][26] Question: Importance of AI in offerings - AI is a top priority for customers, and the company believes its agentic AI platform provides a competitive edge [30][32] Question: Competitive displacements and project scope - Projects vary in scope, with some starting in one area and expanding to others, leveraging unique solutions like data sovereignty [36][38] Question: Customer reaction to price increases - Customers have shown resilience to price increases, and the company plans to evaluate further price adjustments as needed [42][44] Question: Impact of professional services on margins - Professional services have lower margins compared to subscription services, affecting overall margin mix in the short term [75][78] Question: Long-term growth expectations - Management is optimistic about continued double-digit growth in 2027, driven by market share gains and improved solutions [66][70]

Microsoft Corp. (NASDAQ:MSFT) is set to release its second-quarter 2026 earnings on Wednesday, with investors and analysts closely watching cloud growth, AI investments, and capital expenditures amid a six-month stock slump.Analysts Predict Strong Cloud PerformanceFor the second quarter, Wall Street expects Microsoft to report earnings per share of $3.86 and revenue of $80.26 billion, up from $3.23 EPS and $69.63 billion revenue in the same quarter last year, according to Benzinga Pro data.The company has a ...

Core Viewpoint - Oracle's increasing cloud capital expenditure is positioning the company for its next growth phase, with a forecasted capital expenditure of around $50 billion for fiscal 2026, reflecting strong demand in AI and enterprise cloud services [2][3]. Group 1: Oracle's Growth Strategy - Oracle invested approximately $12 billion in the second quarter of fiscal 2026, focusing on GPU-based infrastructure and data centers to support Oracle Cloud Infrastructure growth [3]. - The company expects about $4 billion in incremental revenue acceleration starting in fiscal 2027, driven by AI training, inference, and multicloud deployments [4]. - Oracle is adopting a disciplined funding approach through a mix of debt markets and alternative models, such as customer-provided or leased chips, to align revenues with costs [5]. Group 2: Competitive Landscape - Oracle faces competition from Amazon and Alphabet, both of which are heavily investing in data centers and AI infrastructure to enhance their cloud services [6]. - Amazon's capital expenditure in the third quarter of 2025 reached nearly $90 billion, primarily for AWS and AI capacity, reinforcing its cloud leadership [7]. - Alphabet invested about $24 billion in the same period, focusing on servers and data centers to support Google Cloud and AI demand, with a significant backlog of $155 billion [8]. Group 3: Oracle's Stock Performance and Valuation - Oracle's shares have declined by 26.3% over the past six months, underperforming the Zacks Computer and Technology sector's growth of 14.4% [9][10]. - The current forward 12-month Price/Earnings ratio for Oracle is 23.1x, lower than the industry average of 26.69x, indicating a relatively undervalued position [10]. - The Zacks Consensus Estimate for Oracle's fiscal 2026 earnings is $7.42 per share, suggesting a growth of 23.05% compared to fiscal 2025 [11].