Oracle falls short on Q3 earnings

Oracle has reported its fiscal Q3 2022 results, revealing earnings of $1.13 per share, falling short of the $1.18 per share expected by Wall Street analysts.

Oracle reported total revenue of $10.5bn, up 4 percent year-on-year. Cloud revenue was the key driver, up 24 percent to $2.8bn.

However, the company’s net income declined by 54 percent year-on-year to $2.32bn, which Oracle attributes to a decline in the share price of gene sequencing company Oxford Nanopore, and an operating loss at Ampere, the maker of the world’s fastest ARM server chips.

Safra Catz, Oracle CEO, said: “In Q3, Oracle delivered over 7 percent constant currency revenue growth – our highest quarterly organic revenue growth rate since we began our transition to the cloud. This strong top line growth was coupled with a solid non-GAAP constant currency operating profit growth of 4 percent, but the big story is that our overall revenue growth is being driven by both our rapidly growing Cloud Infrastructure and Cloud Applications businesses.

“Q3 Cloud Infrastructure revenue was up 47 percent in constant currency. Q3 Cloud Applications growth was led by Fusion ERP, which was up 35 percent in constant currency and NetSuite ERP which was up 29 percent in constant currency. Total Cloud revenue which includes Cloud Infrastructure and Cloud Applications is now over $11bn a year.”