Larry Ellison, co-founder and executive chairman of Oracle Corporation, delivered a speech at the Oracle OpenWorld conference in San Francisco on October 22, 2018.
David Paul Morris | David Paul Morris Bloomberg | Getty Images
Oracle report quarterly earnings That beat Wall Street expectations on Monday. The stock rose more than 10% in after-hours trading.
Here’s what the company does:
- benefit: Adjusted $1.41 per share, compared with expectations of $1.38, according to LSEG (formerly Refinitiv)
- income: $13.28 billion, compared with expectations of $13.3 billion, according to LSEG
Revenue for the quarter increased 7% from $12.4 billion a year earlier. Net income rose 27% to $2.4 billion, or 85 cents a share, from $1.9 billion, or 68 cents a share, a year ago.
Sales at Oracle’s largest business, cloud services and licensed support, rose 12% to $9.96 billion, slightly above StreetAccount’s consensus estimate of $9.94 billion. The company attributed the growth 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. Oracle said its cloud revenue, which is reportedly part of the unit, rose 25% year over year to $5.1 billion.
“We expect to continue to receive large contracts for reserved cloud infrastructure capacity,” Katz said in a statement.
Other parts of the company also underperformed.
Cloud licensing and on-premises sales fell 3% to $1.26 billion, slightly better than StreetAccount’s forecast. Hardware revenue fell 7% to $754 million, while sales in the company’s services division fell 5% to $1.31 billion, both below StreetAccount expectations.
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