Software company Oracle (NYSE:ORCL) is expected to announce its quarterly earnings on September 9, as investors wait to see whether the company will be able to keep its momentum towards its push to offer cloud services as demand from customers grows for data centers which can run AI workloads.

The consensus EPS Estimate is $1.33 (+11.8% Y/Y) and the consensus Revenue Estimate is $13.24B (+6.3% Y/Y).

SA Analyst Joseph Parrish believes the growth outlook for the company is positive with potential for double-digit revenue growth and strong free cash flow generation. “Oracle has a compelling story in the current AI craze, and while many other companies have had their valuations pumped up to entire lifetimes’ worth of their earnings, ORCL stands out as priced within reason, with room to enjoy pleasant surprises along the way,” Parrish added.

However, analyst Vladimir Dimitrov says that Oracle’s business model is likely to be less profitable in the future. “The reason being that competing in the highly lucrative cloud infrastructure and cloud application space would take its toll on Oracle’s pricing-power,” he added.

Oracle shares rose last quarter after it reported fiscal fourth-quarter results and announced the signing of several key artificial intelligence-centric deals with companies such as OpenAI and Google, leading Wall Street to overlook a weaker-than-expected fourth-quarter in favor of strong bookings and guidance.

Oracle said for the first quarter, it expects revenue to grow between 6% and 7% year-over-year in constant currency, with cloud sales up between 21% and 23%. Earnings should be between $1.31 and $1.35 per share, excluding one-time items.

Over the last 2 years, ORCL has beaten EPS estimates 75% of the time and has beaten revenue estimates 38% of the time.

Over the last 3 months, EPS estimates have seen 13 upward revisions and 5 downward. Revenue estimates have seen 0 upward revisions and 19 downward.