Oracle misses on earnings and issues weak revenue guidance
Oracle issued quarterly results on Monday that trailed analysts' estimates and gave a forecast that came up short of expectations.
Here is how Oracle did compared to LSEG consensus:
Earnings per share: $1.47 adjusted vs. $1.49 expected
Revenue: $14.13 billion vs. $14.39 billion expected
Revenue increased 6% from $13.3 billion in the same period last year. Net income rose 22% to $2.94 billion, or $1.02 a share, from $2.4 billion, or 85 cents a share, a year earlier. Revenue in Oracle's cloud services business jumped 10% from a year earlier to $11.01 billion, accounting for 78% of total sales.
The company's cloud infrastructure segment, which helps businesses move workloads out of their own data centers, has been booming due to demand for computing power that can support artificial intelligence projects. Oracle said revenue in its cloud infrastructure unit increased 49% from a year earlier to $2.7 billion.
"We are on schedule to double our data center capacity this calendar year," Oracle Chair Larry Ellison said in a release. "Customer demand is at record levels."