ORACLE CORP Quarterly Report for Q3 Ended Feb 28, 2021

Summary

Oracle Corporation (ORCL) reported its third-quarter fiscal year 2021 results, showcasing a notable increase in revenues and profitability. Total revenues grew by 3% year-over-year to $10.1 billion, driven primarily by a 4% increase in the Cloud and License segment. This segment, which represents 85% of total revenue, saw strong performance in both Cloud Services and License Support, and Cloud License and On-Premise License. The company also demonstrated improved operational efficiency, with total operating expenses decreasing by 1% year-over-year on an actual basis and 2% on a constant currency basis. This led to a significant increase in operating income by 10% (5% constant currency) to $3.9 billion. Net income surged by 95% to $5.0 billion, or $1.68 per diluted share, reflecting a strong tax benefit recognized during the quarter related to a legal entity restructuring. The company also announced an expansion of its stock repurchase program by an additional $20.0 billion, underscoring its commitment to returning value to shareholders.

Key Highlights

• 1Total revenues increased by 3% to $10.09 billion for the third quarter.
• 2Cloud and License segment revenue grew by 4% to $8.53 billion, highlighting strength in cloud offerings.
• 3Operating income rose by 10% to $3.88 billion, showcasing improved operational efficiency.
• 4Net income saw a substantial increase of 95% to $5.02 billion, boosted by a significant tax benefit.
• 5Diluted Earnings Per Share (EPS) increased to $1.68 from $0.79 in the prior year period.
• 6The company announced a $20 billion expansion of its stock repurchase program.
• 7Deferred revenues increased to $8.76 billion, indicating strong future revenue potential.

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