Oracle beats Q2 results with cloud revenue up 22%
Oracle on Thursday published its second quarter financial results, beating market expectations with solid growth from its infrastructure and applications cloud businesses.
Oracle's Q2 non-GAAP operating income was up 6% to $4.9 billion, and earnings per share was up 14% to $1.21. Total quarterly revenues were up 6% year-over-year to $10.4 billion.
Analysts were expecting earnings of $1.11 per share on revenue of $10.21 billion.
"These strong results are being driven by the 22% growth of our infrastructure and applications cloud businesses which are approaching $11 billion in annualized revenue," CEO Safra Catz said in a statement. "We now have 8,500 Fusion ERP customers with revenue growing 35%, 28,400 NetSuite ERP customers with revenue growing 29%, and our Gen2 infrastructure businesses are growing even faster—and accelerating."
Oracle's total cloud revenue, comprising the infrastructure and applications cloud businesses, was $2.7 billion for the quarter.
By segment, Cloud services and license support revenues in Q2 were up 6% to $7.6 billion. Within that category, applications cloud services and license support brought in $3.15 billion, up 9%, while infrastructure cloud services and license support brought in $4.4 billion, up 5%.
Cloud license and on-premise license revenues were up 13% to $1.2 billion. Hardware brought in $767 million, down 9%. Services brought in $802 million, up 7%.
For the third quarter, Catz said total revenue is expected to grow 6% to 8% in constant currency.
Meanwhile, Oracle's board of directors increased the authorization for share repurchases by $10 billion. The board of directors also declared a quarterly cash dividend of 32 cents per share of outstanding common stock.