), the leading global enterprise software company and one of the
most important stocks in the Nasdaq 100, released its fiscal
second quarter earnings results after the closing bell on
Tuesday. The company's results were ahead of Wall Street
estimates across the board. In the premarket on Wednesday, Oracle
traded up almost three percent.
"Q2 performance was strong and broad based as all geographies
reported double-digit revenue growth in new software license and
cloud subscriptions," said Oracle President, Mark Hurd.
"Applications, middleware and database all had double-digit
growth in new software license and cloud subscriptions, with
applications leading the pack with growth of over 30%."
The Redwood City, California-based tech giant said that second
quarter net income was $2.8 billion or $0.53 per share, compared
to $2.2 billion or $0.36 per share, in last year's second
quarter. On an adjusted basis, which is comparable to analysts'
consensus, Oracle reported net income of $3.1 billion or $0.64
per share, versus $2.8 billion or $0.54 per share, in last year's
corresponding quarter. This beat analysts' consensus EPS
estimates of $0.61 by three cents.
Total revenue in the period was up 3 percent to $9.09 billion
from $8.79 billion last year. Adjusted revenue was also up 3
percent to $9.11 billion versus $8.81 billion in last year's
second quarter. This compared to analysts' consensus revenue
estimates of $9.03 billion.
On a constant currency basis, revenue in the second quarter
was up 5 percent at Oracle and earnings per share rose 26
Total software revenue in the period climbed 10 percent to
$6.6 billion. New software licenses and cloud software
subscriptions were particularly strong, gaining 17 percent to
$2.4 billion. Software license updates and product support
revenue was up seven percent to $4.3 billion.
Service revenue and hardware revenue fell five percent and 16
percent, respectively. Service sales came in at $1.1 billion and
hardware systems sales were $1.3 billion, according to the
Operating margin for the second quarter was up 300 basis
points to 38 percent versus 35 percent in the prior year period.
Adjusted operating margins was 47 percent compared to 46 percent
last year. Year-to-date, Oracle has now gained around 29 percent
as the stock continues to be a leader in the large-cap tech space
under the guidance of founder and CEO Larry Ellison and former
Hewlett-Packard CEO Mark Hurd who serves as the President of of
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