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

Oracle reported quarterly earnings on Monday that exceeded Wall Street’s expectations. The shares rose over 10% in extended trading.

Here’s how the company did:

• Earnings: $1.41 per share, adjusted, versus $1.38 expected, according to LSEG, formerly Refinitiv
• Revenue: $13.28 billion, versus $13.3 billion expected, according to LSEG

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.

Oracle CEO Safra 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 unit, rose 25% year-over-year to $5.1 billion, Oracle 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.