[ad_1]
Oracle Corp.’s revenue for the latest quarter came up a bit short of expectations, and shares of the software giant were dropping 7% in Monday’s aftermarket action.
The company recorded fiscal second-quarter net income of $2.50 billion, or 89 cents a share, compared with $1.74 billion, or 63 cents a share, in the year-earlier period. On an adjusted basis, Oracle
ORCL,
posted earnings per share of $1.34, whereas analysts were modeling $1.33.
Revenue rose to $12.94 billion from $12.28 billion a year before, while the FactSet consensus was for $13.05 billion. Overall revenue was up 5%, or ahead 4% on a constant-currency basis.
The company generated $9.64 billion in revenue from cloud services and license support, up 12% from a year before, while analysts were looking for $9.71 billion. Cloud license and on-premise license revenue fell 18% to $1.18 billion, whereas the FactSet consensus was for $1.21 billion.
Oracle reported $756 million in revenue from hardware, down 11% from a year before, as well as $1.37 billion in services revenue, down 2%. Analysts were expecting $747 million and $1.39 billion, respectively.
“Demand for our cloud infrastructure and generative AI services is increasing at an astronomical rate,” Chief Executive Safra Catz said in a release, noting that Oracle had more that $65 billion in total remaining performance obligations.
See also: Nvidia’s stock dubbed a top pick for next year after monster 2023
The company’s cloud businesses are approaching a $20 billion annual revenue run rate, she added.
Oracle’s stock has advanced 41% so far this year, while the S&P 500
SPX
has gained 20%.
[ad_2]
Source link
