NYSE$ORCL

Oracle Corporation · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Oracle's Q2 fiscal year 2022 financial results were announced, with total revenue up 6% to $10.4 billion and non-GAAP EPS up 14% to $1.21, beating guidance by $0.10.

Oracle announced its Q2 Fiscal Year 2022 financial results, revealing a 6% increase in total revenue, reaching $10.4 billion. The cloud sector, encompassing IaaS and SaaS, experienced a 22% growth, contributing $2.7 billion to the total revenue. Non-GAAP EPS increased by 14% to $1.21, surpassing expectations by $0.10.

  • Total revenue increased by 6% year-over-year to $10.4 billion.
  • Cloud services and license support revenues grew by 6% to $7.6 billion.
  • Cloud license and on-premise license revenues increased by 13% to $1.2 billion.
  • Non-GAAP earnings per share was up 14% to $1.21, beating guidance by $0.10.

Headline financials

Total Revenue

$10.4B

Previous: $9.8B+5.7%
EPS (adj)

$1.21

Previous: $1.06+14.2%
Capital Expenditures

-$1.99B

Previous: -$1B-97.9%
Free Cash Flow

-$3.23B

Previous: $1.44B-324.9%
Net Income

-$1.25B

Previous: $2.44B-151.1%
Operating Income

-$824M

Previous: $3.58B-123.0%
Gross Profit

$8.2B

Previous: $7.86B+4.3%
Cash & Equivalents

$17.9B

Previous: $28B-35.9%
Total Assets

$107B

Previous: $110B-2.8%
Stock-Based Comp

$681M

Previous: $488M+39.5%

Revenue & EPS history

Oracle · Revenue · Quarterly

$10.4B

Q2 2022+5.7%vs Q2 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Oracle · $1.57B total across 2 segments · Q2 2022

  • Services
    $802M+6.6%
  • Hardware
    $767M-9.1%

Forward guidance

Oracle's CEO, Safra Catz, anticipates continued growth in the infrastructure and applications cloud businesses, projecting them to approach $11 billion in annualized revenue. The company expects database market and technology leadership will be sustained by Oracle's Autonomous Database and new MySQL Database with HeatWave.

Tailwinds

  • Growth of infrastructure and applications cloud businesses.
  • Oracle's Autonomous Database and new MySQL Database with HeatWave are the world’s two highest-performance databases.
  • Oracle database on-premise customers are choosing our Autonomous Database as they move to the public cloud and our unique Cloud@Customer service.
  • Amazon Aurora customers are discovering that moving to MySQL with HeatWave can increase their performance by more than ten-times—with a corresponding reduction in cost.
  • The board of directors increased the authorization for share repurchases by $10 billion.

Headwinds

  • The COVID-19 pandemic has affected how we and our customers are operating our respective businesses, and the duration and extent to which this will impact our future results of operations remains uncertain.
  • Our success depends upon our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services.
  • Our cloud strategy, including our Oracle Cloud Software-as-a-Service and Infrastructure-as-a-Service offerings, may adversely affect our revenues and profitability.
  • We might experience significant coding, manufacturing or configuration errors in our cloud, license and hardware offerings.
  • If our security measures for our products and services are compromised and as a result, our data, our customers' data or our IT systems are accessed improperly, made unavailable, or improperly modified, our products and services may be perceived as vulnerable, our brand and reputation could be damaged, the IT services we provide to our customers could be disrupted, and customers may stop using our products and services, any of which could reduce our revenue and earnings, increase our expenses and expose us to legal claims and regulatory actions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.1%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+2.4%

Avg return

30 days after

44%

32 / 73 earnings

Positive

+15.4%

Q2 2022

Best reaction

-13.2%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-2.4%-0.4%
Q3 2026-0.0%+4.4%-7.6%
Q2 2026-4.2%-15.4%-11.0%
Q1 2026+10.9%+25.1%+21.3%
Q4 2025+2.7%+3.7%+5.7%
Q3 2025-3.1%+0.3%-10.4%
Q2 2025-7.3%-9.5%-14.9%
Q1 2025+9.9%+14.3%+25.7%
Q4 2024+12.8%+10.9%+14.7%
Q3 2024+13.4%+11.7%+8.3%
Q2 2024-11.3%-9.1%-8.5%
Q1 2024-13.2%-9.8%-13.2%
Q4 2023+6.2%+14.2%+5.6%
Q3 2023-5.0%-4.4%+8.4%
Q2 2023+0.9%-0.4%+10.9%
Q1 2023+0.2%-9.3%-16.0%
Q4 2022+5.3%-1.6%+7.9%
Q3 2022+2.3%+5.9%+6.4%
Q2 2022+15.4%+12.3%-1.6%
Q1 2022-3.7%-3.7%+7.5%
Q4 2021-6.7%-7.7%+4.4%
Q3 2021-7.2%-6.8%+4.0%
Q2 2021+1.5%+3.6%+6.1%
Q1 2021+0.1%+7.0%+7.4%
Q4 2020-3.2%+2.2%+4.8%
Q3 2020+7.2%+4.8%+18.9%
Q2 2020-3.2%-6.2%-3.3%
Q1 2020-2.8%-4.2%+2.6%
Q4 2019+7.7%+7.3%+8.8%
Q3 2019-0.2%+1.8%+2.7%
Q2 2019-1.6%-5.6%+3.1%
Q1 2019-0.4%+3.8%-2.8%
Q4 2018-8.0%-5.2%+4.1%
Q3 2018-10.0%-14.3%-9.9%
Q2 2018-3.5%-4.5%-1.1%
Q1 2018-7.7%-9.0%-7.9%
Q4 2017+9.7%+11.0%+10.8%
Q3 2017+6.9%+5.7%+2.8%
Q2 2017-4.4%-4.6%-4.0%
Q1 2017-3.3%-2.9%-4.6%
Q4 2016+3.2%+4.0%+8.7%
Q3 2016+3.9%
Q2 2016-3.3%
Q1 2016-3.3%
Q4 2015-4.3%
Q3 2015+1.7%
Q2 2015+11.6%
Q1 2015-3.3%
Q4 2014-4.6%
Q3 2014+0.9%
Q2 2014+8.8%
Q1 2014+1.9%
Q4 2013-11.6%
Q3 2013-9.5%
Q2 2013+5.5%
Q1 2013-0.9%
Q4 2012+0.9%
Q3 2012-1.2%
Q2 2012-10.0%
Q1 2012+1.8%
Q4 2011+2.7%
Q3 2011+1.5%
Q2 2011-0.1%
Q1 2011-1.3%
Q4 2010+1.7%
Q4 2008+1.7%
Q3 2010-0.6%
Q3 2009-0.6%
Q2 2010+1.2%
Q2 2009-1.0%
Q1 2010-1.0%
Q1 2009-1.0%
Q4 2009-1.0%

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