Oracle Corporation (NYSE: ORCL) stock is in the limelight after the company posted better-than-expected fourth quarter results. Oracle’s revenue in the quarter came in at $11.14 billion, better than the consensus estimate of $10.93 billion. Licensing software jumped 12% year-over-year to $2.52 billion in the quarter. Cloud services and license support also grew by 0.5%. EPS in the quarter totaled $1.16 per share, better than the estimate of $1.07.
Partnership with Microsoft
In a report, Nomura Instinet analysts led by Christopher Eberle said that layoffs at Oracle and the company’s partnership with Microsoft show that Oracle is continuing its uphill battle in the Cloud strategy. The analysts said that Oracle’s partnership with Microsoft is “a step in the right direction.” The partnership mentioned was announced on June 5. It will allow customers to migrate and run enterprise workloads across Microsoft Azure and Oracle Cloud. Users will be able to connect and deploy Azure services to Oracle Cloud services, like Autonomous Database.
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Improved Product Offering
Oracle Corporation (NYSE: ORCL) is drastically improving is product offering, increasing its focus on Cloud and analytics, as customers move away from on-premise database systems toward Cloud-based data solutions.
Oracle’s Co-Chief Executive Safra Catz said during the earnings call that Oracle’s growth was boosted due to several new products, including a database that performs updates and plugs security holes automatically.
Oracle Corporation (NYSE: ORCL) is swiftly gaining strength in the analytics market, which is becoming a new round of competition for data and Cloud companies like Salesforce. On June 25, Oracle launched Oracle Analytics which will helps businesses make sense of data. The service will have AI-powered self-service analytics capabilities for data preparation, visualization and enterprise reporting.
Latest filings also show that Oracle is ramping up on share buybacks, which is a good sign. In its fiscal year 2019 10-K, Oracle said it had bought back 744 million shares for $36 billion, or over 18% of its shares. Over the last ten years, the company has spent a whopping $100 billion, or an average of $10.4 billion a year, on share buybacks. This initiative could give a boost to Oracle stock price in the near future.
The author does not own any of the stocks discussed in this article.