Oracle (ORCL) Q3 2024 Earnings Report

Oracle reported quarterly earnings on Monday, which beat Wall Street expectations. Shares rose more than 10% in extended trading.

Here’s how the company fared:

• Profits: $1.41 per share adjusted, versus $1.38 expected, according to LSEG, before Refinitiv
• income: $13.28 billion, versus $13.3 billion expected, according to LSEG

Revenue rose 7% in the quarter from $12.4 billion a year earlier. Net income rose 27% to $2.4 billion, or 85 cents a share, from $1.9 billion, or 68 cents a share, a year ago.

Oracle’s cloud services and license support segment, the largest business, reported a 12% rise in sales to $9.96 billion, slightly beating the StreetAccount consensus estimate of $9.94 billion. The company attributed the increase to strong demand for its artificial intelligence servers.

Oracle CEO Safra Katz said the company added several “major new cloud infrastructure contracts” during the quarter. The company’s cloud revenue, which is reported as part of the unit, rose 25% year over year to $5.1 billion, Oracle said.

“We expect to continue to win large contracts preserving cloud infrastructure capacity,” Catz said in a statement.

The company’s other units did not fare as well.

Cloud licenses and on-premise sales declined 3% to $1.26 billion, slightly beating StreetAccount’s forecast. Hardware revenue fell 7% to $754 million, while sales at the company’s services division fell 5% to $1.31 billion, both missing StreetAccount expectations.