Oracle beats second-quarter estimates on tech spending rebound

Oracle Corp reported upbeat second-quarter results, as the IT-services turned cloud solutions player benefited from a rebound in tech spending from businesses looking to support hybrid work

(Reuters) - Oracle Corp reported upbeat second-quarter results on Thursday, as the IT-services turned cloud solutions player benefited from a rebound in tech spending from businesses looking to support hybrid work.

The company's shares rose 5.1% in extended trading.

As the pandemic pushed more companies to shift to a hybrid work model, spending on cloud technology has risen, benefiting Oracle and companies such as Salesforce, Amazon.com Inc and Microsoft.

Revenue at Oracle's cloud services and license support unit, its largest, rose to $7.55 billion from $7.11 billion a year earlier.

The company has invested in its data centers in the recent past to bolster cloud services operations and gain customers such as Deutsche Bank and Zoom Video Communications.

Oracle said it made a payment for a judgment related to a dispute regarding former CEO Mark Hurd's employment, that resulted in a third-quarter loss of $1.25 billion versus a profit of $2.44 billion a year earlier.

On an adjusted basis, the company earned $1.21 per share on revenue of $10.36 billion. Analysts had expected profit of $1.11 per share and revenue of $10.21 billion, according to Refinitiv IBES data.

 

(Reporting by Akash Sriram in Bengaluru; Editing by Shounak Dasgupta)