Earnings

Oracle misses on earnings as investments drag down quarterly profit

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Safra Catz, then co-chief executive officer of Oracle Corp., speaks during the Oracle OpenWorld conference in San Francisco on Sept. 20, 2016.
David Paul Morris | Bloomberg | Getty Images

Oracle shares slid more than 6% in extended trading on Thursday after the database software maker reported fiscal third-quarter earnings that failed to meet analysts’ expectations.

Here’s how the company did:

  • Earnings: $1.13 per share, adjusted, vs. $1.18 per share as expected by analysts, according to Refinitiv.
  • Revenue: $10.51 billion, vs. $10.51 billion as expected by analysts, according to Refinitiv.

Oracle’s revenue increased 4% from a year earlier in the quarter, which ended Feb. 28, according to a statement. Net income declined 54% to $2.32 billion.

Net income dropped due to two investments. The company said profit was hurt by the tumbling share price of gene-sequencing company Oxford Nanopore and an operating loss at Arm server chip maker Ampere Computing, a private company.

“We remain confident that our investments in these two cutting-edge technology companies will deliver very strong returns for Oracle,” Oracle said.

In the quarter Oracle announced its intent to acquire Cerner, a developer of software for managing health records, for $28.3 billion in cash.

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

Prior to the after-hours move, Oracle stock was down 12% so far in 2022. The S&P 500 index has dropped about 11% over the same period.

This is breaking news. Please check back for updates.

WATCH: Jim Cramer likes Oracle after recent pullback, says the stock is trading at an ‘amazing price’

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