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Oracle stock has outperformed Microsoft by 10 percentage points this year.
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Oracle
shares were heading lower in late trading Monday after the enterprise software giant posted earnings and guidance that fell short of investor expectations.
The stock slipped 5% after the report and ahead of the company’s post-earnings call with investors, and then fell further after the company provided November quarter guidance, broadening the loss to more than 8%.
For the fiscal first quarter ended Aug. 31, Oracle (ticker: ORCL) reported revenue of $12.45 billion, about in line with consensus, up 9% from a year ago, and 8% higher adjusted for currency. The company’s guidance for the quarter had called for 8% to 10% growth in constant currency. Adjusted profits were $1.19 a share, four cents above the Wall Street consensus at $1.15 a share, and above the guidance range of $1.12 to $1.16 a share. Under generally accepted accounting principles, Oracle earned 86 cents a share in the quarter.
Oracle said cloud revenue was $4.6 billion, up 30% from a year ago; that includes 17% growth in cloud application revenue to $3.1. billion, and 66% growth in cloud infrastructure revenue, to $1.5 billion.
The company said Fusion Cloud ERP, the company’s enterprise software for larger enterprises, was up 21% to $800 million, while NetSuite Cloud ERP, similar software for smaller companies, was up 21% to $700 million.
“Is Generative AI the most important new computer technology ever? Maybe!,” Oracle Chairman and CTO Larry Ellison said in the earnings statement. “Self-driving cars, molecular drug…
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