Oracle shares sink nearly 5% after third-quarter revenue miss

Business

Safra Catz, Oracle’s CEO and then one of Oracle’s two co-CEOs, smiles during Oracle’s OpenWorld conference in San Francisco on, Sept. 20, 2016.
David Paul Morris | Bloomberg | Getty Images

Oracle shares dropped nearly 5% after the enterprise tech giant reported its financial results for its 2023 fiscal third quarter.

Here’s how the company did:

  • Earnings: $1.22 per share, adjusted, vs. $1.20 per share as expected by analysts, according to Refinitiv.
  • Revenue: $12.40 billion vs. $12.42 billion as expected by analysts, according to Refinitiv.

Oracle’s overall sales jumped 18% year-over-year during its latest quarter.

For the third quarter ended Feb. 28, net income fell to $1.90 billion, or 68 cents a share, from $2.32 billion, or 84 cents a share, a year earlier. On an adjusted basis, Oracle earned $1.22 a share, outpacing the analyst estimate of $1.20 a share.

It’s operating income was $3.3 billion during the quarter, marking an 18% decline from the $2.3 billion it recorded the previous year during the third quarter. The company said that if not for the impact of the strong dollar, its adjusted income would have been 5 cents per share higher.

Oracle’s total operating expenses jumped 37% year over year to $9.2 billion.

“Oracle’s non-GAAP earnings per share growth hit the high end of our guidance — up 13% in constant currency to $1.22,” Oracle CEO Safra Catz said in a statement. “Our strong quarterly earnings growth was driven by 48% constant currency growth for the total revenue of our two cloud businesses, infrastructure and applications.”

Watch: Oracle misses on top line

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