Safra Catz, Oracle’s CEO and then one of Oracle’s two co-CEOs, smiles during Oracle’s OpenWorld conference in San Francisco on, Sept. 20, 2016.
David Paul Morris | Bloomberg | Getty Images
Oracle shares rose as much as 4% in extended trading on Monday after the software company reported results for the fiscal second quarter that topped analysts’ estimates.
Here’s how the company did:
- Earnings: $1.21 per share, adjusted, vs. $1.18 per share as expected by analysts, according to Refinitiv.
- Revenue: $12.28 billion, vs. $12.05 billion as expected by analysts, according to Refinitiv.
Oracle’s total revenue grew 18% year over year in the quarter, which ended on Nov. 30, according to a statement. Health care software company Cerner, which Oracle acquired for $28 billion in June, contributed $1.5 billion in revenue.
Without the impact from foreign-exchange rates, Oracle’s adjusted earnings would have been 9 cents higher, the company said. Revenue for the quarter was over $200 million above the high end of its guidance range, Safra Catz, Oracle’s CEO, said in the statement. She cited strength in cloud infrastructure and cloud-based applications.
Net income was $1.74 billion, compared with a net loss of $1.25 billion in the year-ago quarter. Last year’s loss came in connection to a payment for a judgment tied to Mark Hurd, who previously served as co-CEO alongside Catz. Hurd died in 2019.
Oracle widened its adjusted operating margin to 41% from 39% in the previous quarter. Revenue in the company’s cloud services and license support segment increased 14% to $8.6 billion, higher than the $8.56 billion consensus among analysts polled by StreetAccount. Revenue from cloud infrastructure jumped 53% to $1 billion.
Revenue from cloud and on-premises licenses, at $1.44 billion, exceeded the $1.24 billion StreetAccount consensus.
In the quarter Oracle announced Alloy, a means for partners to run the company’s cloud services in their own data centers. Separately, the U.S. Securities and Exchange Commission fined Oracle $23 million over alleged violations of the Foreign Corrupt Practices Act.
Oracle said it was aiming for $65 billion in organic revenue, including Cerner’s contribution, in the 2026 fiscal year, with a 45% adjusted operating margin.
Prior to the after-hours move, shares of Oracle are down about 7% for the year, while the S&P 500 index has tumbled 15% over the same period.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
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