Earnings

Oracle beats on top and bottom lines as cloud revenue jumps

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Larry Ellison, Oracle’s chairman and technology chief, speaks at the Oracle OpenWorld conference in San Francisco on September 16, 2019.
Justin Sullivan | Getty Images

Oracle shares climbed as much as 5% in extended trading on Monday after the software vendor announced fiscal fourth-quarter results that exceeded Wall Street’s expectations.

Here’s how the company did:

  • Earnings: $1.67 per share, adjusted, vs. $1.58 per share as expected by analysts, according to Refinitiv.
  • Revenue: $13.84 billion, vs. $13.73 billion as expected by analysts, according to Refinitiv.

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Oracle’s revenue grew 17% year over year in the quarter that ended on May 31, according to a statement. Net income reached $3.32 billion, or $1.19 per share, compared with $3.19 billion, or $1.16 per share, in the year-ago quarter.

The company’s top source of revenue, cloud services and license support, jumped 23% to $9.37 billion. But revenue from cloud licenses and on-premises declined 15% to $2.15 billion.

Revenue from cloud infrastructure totaled $1.4 billion, which was up 76%, accelerating from 55% growth in the prior quarter. That part of Oracle is expanding faster than rivals such as Microsoft and Google but is still much smaller.

During the quarter, Oracle said more of its cloud services had received approval for use by U.S. defense and intelligence agencies.

Excluding the after-hours move, Oracle shares have climbed almost 43% so far this year, while the S&P 500 index is up around 13% over the same period. The stock rose 6% in regular trading, its best day in a year, after Wolfe Research analysts upgraded the stock to the equivalent of a buy from a hold based on improving financials along with the company’s position in artificial intelligence.

Executives will discuss the results and issue guidance on a conference call with analysts starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

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