Oracle beat on earnings per share while growing cloud revenue by 32%

Oracle co-CEO Safra Catz.

Oracle co-CEO Safra Catz.
Getty Images/Justin Sullivan

Though Oracle matched analysts’ revenue targets and beat adjusted profit estimates during the company’s fiscal third quarter, its stock was down more than 3% in after-hours trading.

Making good on years of promises, the company reported strong cloud growth, a vital area for the 40-year-old database company as it looks to catch up with more established cloud rivals at Amazon Web Services and Microsoft.

Oracle reported $1.6 billion in revenue from its cloud services – which includes a mix of its software, platform, and infrastructure services – up 32% from the year before.

But overall, Oracle reported losses of $4 billion for the quarter and a loss of $0.98 per share, which it attributed to the new GOP tax law.

Still, co-CEO Safra Catz remained optimistic that the company would continue to perform well on a non-GAAP basis.

“During FY17, I forecast double-digit non-GAAP earnings per share growth for FY18,” Catz said in a statement. “At this point, I feel quite confident that we will comfortably deliver on my original forecast of double-digit non-GAAP earnings per share growth for FY18.”

Here’s what Oracle reported:

  • Earnings per share (adjusted) was $0.83, up 16% from the year before. Analysts expected $0.72.
  • Revenue (GAAP) for the quarter was $9.77 billion, up 6% from the year before. Analysts expected $9.78 billion.
  • Cloud revenue at the company was up 32%, to $1.6 billion.