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Innovation

Oracle beats Q2 results with cloud revenue up 22%

Total cloud revenue, comprising Oracle's infrastructure and applications cloud businesses, was $2.7 billion for the quarter.
Written by Stephanie Condon, Senior Writer

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.

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