Oracle shares soar 13% on better-than-expected quarterly earnings

Oracle
reported

quarterly
earnings
on
Monday
that
exceeded
Wall
Street’s
expectations.
Shares
rose
13%
in
extended
trading.

Here’s
how
the
company
did
in
the
fiscal
third
quarter
ending
Feb.
29,
compared
to
estimates
by
LSEG,
formerly
known
as
Refinitiv:

• 
  Earnings
  per
  share:
  $1.41
  adjusted
  vs.
  $1.38
  expected
• 
  Revenue:
  $13.28
  billion
  vs.
  $13.3
  billion
  expected

For
the
fiscal
fourth
quarter,
Oracle
said
it
expects
earnings
of
$1.62
to
$1.66
per
share.
Analysts
were
expecting
$1.64
in
adjusted
earnings
per
share,
according
to
LSEG.
Revenue
growth
will
be
between
4%
and
6%
over
sales
of
$13.8
billion
a
year
ago.
The
midpoint
of
that
range
would
equal
revenue
of
about
$14.5
billion,
while
analysts
were
expecting
a
little
more
than
$14.7
billion.

Oracle
CEO
Safra
Catz
said
the
company
was
committed
to
hitting
previously
stated
goals
of
$65
billion
in
sales

by
fiscal
2026.
“Some
of
these
goals
might
prove
to
be
too
conservative
given
our
momentum,”
Catz
said.

Revenue
rose
7%
in
the
quarter
from
$12.4
billion
a
year
earlier.
Net
income
climbed
27%
to
$2.4
billion,
or
85
cents
per
share,
from
$1.9
billion,
or
68
cents
per
share,
a
year
ago.

Oracle’s
cloud
services
and
license
support
segment,
its
largest
business,
saw
sales
rise
12%
to
$9.96
billion,
slightly
beating
StreetAccount
consensus
expectations
of
$9.94
billion.
The
company
attributed
the
rise
to
strong
demand
for
its
artificial
intelligence
servers.

Catz
said
the
company
added
several
“large
new
cloud
infrastructure”
contracts
during
the
quarter.
The
company’s
cloud
revenue,
which
is
reported
as
part
of
the
cloud
services
unit,
rose
25%
year
over
year
to
$5.1
billion,
Oracle
said.

“We
signed
several
large
deals
this
quarter
and
we
have
many
more
in
the
pipeline,”
Catz
told
investors
on
the
earnings
call.

Oracle
Chairman
Larry
Ellison
cited
increased
business
from
Microsoft
on
the
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
didn’t
fare
as
well.

Cloud
license
and
on-premise
sales
declined
3%
to
$1.26
billion,
slightly
beating
StreetAccount’s
forecast.
Hardware
revenue
fell
7%
to
$754
million,
while
sales
in
the
company’s
services
division
slid
5%
to
$1.31
billion,
both
falling
short
of
StreetAccount
expectations.

Prior
to
Monday’s
report,
Oracle
shares
were
up
8.7%
for
the
year,
slightly
outperforming
the
S&P
500.