Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.

Oracle quarterly profit beats estimates; shares rise

Oracle quarterly profit beats estimates; shares rise
FILE PHOTO: The Oracle logo is shown on an office building in Irvine, California, U.S. June 28, 2018. REUTERS/Mike Blake/File Photo -
Euronews logo
Text size Aa Aa

(Reuters) – Oracle Corp beat fourth-quarter revenue and profit estimates on Wednesday, as the business software maker benefited from demand for its on-premise IT, cloud services and license support businesses, sending its shares up as much as 7% in extended trading.

Revenue from its cloud license and on-premise license businesses rose 12% to $2.52 billion (£1.99 billion) from $2.25 billion, above analysts’ estimates of $2.31 billion, according to IBES data from Refinitiv.

Revenue from the cloud services and license support business, its biggest, rose marginally to $6.80 billion. Analysts on average had expected revenue of $6.79 billion.

“Our high-margin Fusion and NetSuite cloud applications businesses are growing rapidly, while we downsize our low-margin legacy hardware business,” said Chief Executive Officer Safra Catz.

The company’s net income rose to $3.74 billion, or $1.07 per share, in the fourth quarter ended May 31, from $3.28 billion, or 79 cents per share, a year earlier.

Total revenue rose 1% to $11.14 billion, above analysts’ expectation of $10.93 billion.

Excluding items, the company earned $1.16 per share compared to estimates of $1.07 per share.

(Reporting by Sayanti Chakraborty in Bengaluru; Editing by Shounak Dasgupta)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on for a limited time.