Oracle reports 18% revenue growth after Cerner deal closes

Earnings

In this article

Oracle CEO Safra Catz speaks during the SelectUSA Investment Summit in Oxon Hill, Maryland, on June 19, 2017. The SelectUSA Investment Summit brings together companies from all over the world, economic development organizations from every corner of the nation and other parties working to facilitate foreign direct investment (FDI) in the United States.
Eric Thayer | Bloomberg | Getty Images

Oracle reported revenue that met expectations on Monday, while earnings came in below analysts’ estimates.

Revenue climbed 18% in the quarter from a year earlier, thanks to a contribution from recently acquired software maker Cerner.

Here’s how the company did:

  • Earnings: $1.03 per share, adjusted, vs. $1.07 per share as expected by analysts, according to Refinitiv.
  • Revenue: $11.45 billion, vs. $11.45 billion as expected by analysts, according to Refinitiv.

Revenue growth in the quarter ended Aug. 31 accelerated from 5% in the prior quarter, according to a statement.

Oracle received a $1.4 billion contribution from Cerner, after the $28 billion acquisition closed during the quarter.

Net income declined to $1.55 billion from $2.46 billion in the year-ago quarter.

Oracle’s cloud services and license support category generated $8.42 billion in revenue, up 14% and above the StreetAccount consensus of $8.27 billion.

Oracle’s applications and infrastructure cloud businesses now represent over 30% of total revenue, CEO Safra Catz said in a statement. Revenue from cloud infrastructure totaled $900 million in the quarter, up 52%.

In addition to completing the Cerner deal, Oracle announced the availability of its database software through Microsoft’s Azure public cloud, but running on Oracle’s own cloud infrastructure.

Excluding the after-hours move, Oracle shares are down almost 12% so far in 2022, while the S&P 500 is down around 14% over the same time period.

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

This story is developing. Please check back for updates.

WATCH: Guggenheim’s DiFucci reveals what separates good and bad security software companies

Articles You May Like

Palantir CEO Alex Karp says this deadly tidal wave of macroeconomic risks will wipe out some companies
Car buyers pay 10% above the sticker price, on average — or more if you want a Jeep or Porsche
How billionaire Jared Isaacman is using fighter jets to prepare his crew for private SpaceX missions
JetBlue ground operations workers seek union vote, major labor group says
Watch Jamie Dimon and other bank CEOs get grilled by Congress in second day of hearings