Larry Ellison, co-founder and executive chairman of Oracle Corp., speaks during the Oracle OpenWorld conference in San Francisco on October 22, 2018.
David Paul Morris | Bloomberg | Getty Images
Oracle on Monday reported quarterly earnings that beat Wall Street expectations. The shares rose 13% in extended trading.
Here’s how the company performed in the fiscal third quarter ended Feb. 29, compared to estimates from LSEG, formerly known as Refinitiv:
- Earning per share: $1.41 adjusted versus $1.38 expected
- Income: $13.28 billion versus $13.3 billion expected
For its fiscal fourth quarter, Oracle said it expects earnings of $1.62 to $1.66 per share. According to LSEG, analysts expected $1.64 in adjusted earnings per share. Revenue growth will be between 4% and 6% compared to sales of $13.8 billion a year ago. The midpoint of that range would equate to revenue of about $14.5 billion, while analysts were expecting just over $14.7 billion.
Oracle CEO Safra Catz said the company was committed to previously stated goals of reaching $65 billion in sales by fiscal 2026. “Some of these goals may prove too conservative, given our momentum,” Catz said.
Revenue rose 7% in the quarter from $12.4 billion a year earlier. Net income rose 27% to $2.4 billion, or 85 cents a share, from $1.9 billion, or 68 cents a share, a year ago.
Oracle’s Cloud Services and Licensing Support segment, its largest business, saw sales rise 12% to $9.96 billion, slightly beating StreetAccount’s consensus expectations of $9.94 billion . The company attributed the increase to strong demand for its AI servers.
Catz said the company added several contracts for “large new cloud infrastructure” during the quarter. The company’s cloud revenue, which is reported as part of its cloud services unit, rose 25% year over year to $5.1 billion, Oracle said.
“We signed several great deals this quarter and have many more in the pipeline,” Catz told investors on the earnings call.
Oracle President Larry Ellison cited Microsoft’s growing business in his earnings call.
“We’re building 20 data centers from Microsoft and Azure. They just ordered three more data centers this week,” Ellison said.
The company’s other units did not fare as well.
Cloud licenses and on-premise sales fell 3% to $1.26 billion, slightly beating StreetAccount forecasts. Hardware revenue fell 7% to $754 million, while sales in the company’s services division fell 5% to $1.31 billion, both below StreetAccount’s expectations.
Before Monday’s report, Oracle shares had risen 8.7% for the year, slightly outperforming the S&P 500 Index.
