Oracle
shares jumped as much as 11% in extended trading on Tuesday after the software maker announced cloud deals with Google and OpenAI, despite fourth-quarter results that fell short of Wall Street expectations.
Here’s how the company did compared with LSEG consensus:
Earnings per share: $1.63 adjusted vs. $1.65 expected
Revenue: $14.29 billion, vs. $14.55 billion expected
Oracle’s revenue increased 3% year over year during the quarter, which ended on May 31, according to a statement. Net income, at $3.14 billion, or $1.11 per share, was down from $3.32 billion, or $1.19 per share, in the year-ago quarter.
The cloud services and license support segment generated $10.23 billion in revenue, up 9% and slightly below the StreetAccount consensus of $10.29 billion.
The company’s cloud and on-premises licenses business contributed $1.84 billion in revenue. That’s down 15% and lower than the $2.09 billion StreetAccount consensus.
Cloud infrastructure revenue came to $2.0 billion, up 42%, which was a deceleration from the 49% growth rate in the prior quarter. The cloud business remains smaller than rivals Amazon
Web Services and Microsoft
Azure but is growing faster.
With respect to guidance, Oracle sees fiscal first-quarter earnings of $1.31 to $1.35 per share and 5% to 7% revenue growth. Analysts polled by LSEG were looking for $1.32 per share on an adjusted basis and $13.39 billion in revenue, which implies 7.6% growth.