Technology giant Oracle (ORCL) has reported financial results that missed Wall Street targets across the board.
The software maker announced earnings per share (EPS) of $1.63 U.S. compared to $1.65 U.S. that was expected among analysts.
Revenue in the company’s latest fiscal quarter totaled $14.29 billion U.S. versus $14.55 billion U.S. that was expected. The company’s sales were up 3% from a year earlier.
Despite missing forecasts on the top and bottom lines, Oracle’s stock is up 9% as the company announced cloud computing deals with Google parent company Alphabet (GOOGL) and privately held OpenAI.
Oracle said in its earnings statement that it plans to bring its database to Google’s cloud.
Going forward, organizations will be able to deploy workloads in Google and Oracle cloud data centres without being subjected to data-transfer charges.
Last year, Microsoft (MSFT) said its clients would be able to use Oracle’s database with its Azure cloud computing platform.
Investors are looking past Oracle’s bad print and cheering news of the cloud deal with Alphabet and OpenAI.
As for its financial results, Oracle said its cloud and on-premises license business had $1.84 billion U.S. in revenue, down 15% and lower than the $2.09 billion U.S. forecast among analysts.
Cloud infrastructure revenue came in at $2 billion U.S., up 42% but a slowdown from growth of 49% in the previous quarter.
In terms of guidance, Oracle said it expects earnings of $1.31 U.S. to $1.35 U.S. a share and 5% to 7% revenue growth in the current quarter.
Analysts had been looking for $1.32 U.S. per share in earnings and sales of $13.39 billion U.S., which would imply 7.6% year-over-year growth.
Prior to today (June 12), the stock of Oracle had risen 6% in the last 12 months to trade at $123.88 U.S. per share.
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