Oracle saw its share price drop from $126.71 to $109.61 the day after sharing its first quarter 2024 financial results.

Oracle Cloud Infrastructure (OCI) listed a total revenue of $12.5 billion, up nine percent, and a net income of $2.42bn.

Cloud services and license support revenues also increased by 13 percent to $9.5bn. Cloud license and on-premise license revenues, however, were down 10 percent to $0.8bn.

Oracle is also still in the process of moving customers in the Cerner health records business, which it purchased last year for $28.3bn last year, to its cloud. CEO Safra Catz warned of a near-term reduction in revenue growth in this area, with D.A Davidson analyst Gil Luria telling Reuters: "We continue to believe high single-digit growth might be unsustainable for Oracle given Cerner integration risks and formidable data center competition."

OCI, however, remains optimistic that AI will be a significant driver for them in the coming quarter.

“Is generative AI the most important new computer technology ever? Maybe,” said Oracle chairman and CTO, Larry Ellison.

“Self-driving cars, molecular drug design, voice user interfaces - billions of dollars are being invested in AI. As of today, AI development companies have signed contracts to purchase more than $4 billion of capacity in Oracle’s Gen2 Cloud. That’s twice as much as we had booked at the end of Q4.

"The largest AI technology companies and the leading AI startups continue to expand their business with Oracle for one simple reason - Oracle’s RDMA interconnected Nvidia Superclusters train AI models at twice the speed and less than half the cost of other clouds.”

Ellison also noted that Elon Musk's AI venture xAI has signed a contract with Oracle for AI training on its Gen2 Cloud.

Safra Catz said in the earnings call that the company remains "committed" to its FY 2026 goal of a minimum revenue of $65bn.