Oracle tops estimates as AI demand tempers cash-burn fears

Oracle topped Wall Street estimates for quarterly results ​on Thursday and reported a smaller cash burn than ​expected, offering investors confidence that its AI investments were generating returns without squeezing its balance sheet.

Shares of the company, which have slumped more than 21% this year, rose 4% in extended trading after Oracle reported a jump in revenue backlog, a key metric on future revenue growth prospects.

Oracle is benefiting from strong demand for its cloud computing services from surging enterprise spending on AI. Its efforts to expand ‌its data center ⁠footprint are ⁠helping the company secure more enterprise contracts.