Oracle Corp beat fourth-quarter revenue and profit estimates, as the business software maker benefited from demand for its on-premise IT, cloud services and license support businesses, sending its shares up as much as 7% in extended trading.
Revenue from its cloud license and on-premise license businesses rose 12% to $2.52 billion from $2.25 billion, above analysts’ estimates of $2.31 billion, according to IBES data from Refinitiv.
Revenue from the cloud services and license support business, its biggest, rose marginally to $6.80 billion. Analysts on average had expected revenue of $6.79 billion.
“Our high-margin Fusion and NetSuite cloud applications businesses are growing rapidly, while we downsize our low-margin legacy hardware business,” said Chief Executive Officer Safra Catz.
The company’s net income rose to $3.74 billion, or $1.07 per share, in the fourth quarter ended May 31, from $3.28 billion, or 79 cents per share, a year earlier.
Total revenue rose 1% to $11.14 billion, above analysts’ expectation of $10.93 billion.
Excluding items, the company earned $1.16 per share compared to estimates of $1.07 per share.