Oracle (ORCL) reported quarterly results late Monday that beat estimates as revenue jumped 18% and exceeded the high end of the company’s guidance. Oracle stock climbed as the software maker said it is investing heavily in health care information technology.
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The database software company said adjusted earnings were $1.21 a share on revenue of $12.3 billion. Analysts expected Oracle to report earnings of $1.17 a share on revenue of $11.95 billion, according to FactSet.
In constant currency, revenue jumped 25%. The results were for Oracle’s fiscal second quarter ended Nov. 30.
Oracle stock rose 2.9% to 83.60 during after-hours trading on the stock market today.
“The strengthening of the U.S. dollar compared to foreign currencies had a significant impact on results in the quarter,” according to the Oracle earnings release. “Without the impact of the U.S. dollar strengthening, adjusted earnings would have been 9 cents higher.”
Oracle Stock: Investing Heavily In Cloud Computing
Total cloud revenue jumped 43% to $3.8 billion and was up 48% in constant currency, Oracle said.
Oracle is investing heavily to accelerate cloud revenue growth as it also moves to modernize health care information technology.
This was Oracle’s second quarter with a financial contribution from medical records company Cerner. Oracle acquired Cerner for $28 billion, as part of the software company’s deeper move into the health care sector. Cerner contributed $1.5 billion to total revenue.
“We are just beginning our mission to modernize health care information systems,” Oracle Chairman Larry Ellison said in a written statement with the earnings release. “In the wake of the Covid pandemic, there is a worldwide sense of urgency to transform and improve national health care systems. The scale of this opportunity is unprecedented.”
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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