After the software company announced results for the fiscal second quarter that exceeded analysts’ expectations, shares of Oracle rose as much as 4% during extended trading on Monday. However, it provided a lower-than-anticipated earnings forecast.

The company did the following:

Earnings: $1.21 per share, adjusted, as opposed to analysts’ expectations of $1.18 per share, according to Refinitiv.
Revenue: $12.28 billion, rather than the $12.05 billion that analysts had anticipated, according to Refinitiv.

On a conference call, Oracle CEO Safra Catz stated that she anticipates 17% to 19% revenue growth for the fiscal third quarter and adjusted earnings per share of $1.17 to $1.21. Refinitiv polled analysts and predicted $12.34 billion in revenue and $1.24 per share, or 17.3% growth.

According to a statement, Oracle’s total revenue increased by 18% year-over-year in the fiscal second quarter, which ended on November 30. Cerner, a healthcare software company, was acquired by Oracle in June for $28 billion and generated $1.5 billion in revenue.

According to the company, Oracle’s adjusted earnings would have increased by 9 cents without the impact of foreign exchange rates. According to Catz’s statement, revenue for the quarter was more than $200 million higher than the high end of its guidance range. She cited strengths in cloud-based applications and cloud infrastructure.

She stated on the call on Monday, “We really have it coming from all areas.”

In contrast to the previous quarter, which saw a net loss of $1.25 billion, this one saw net income of $1.74 billion. The payment for a judgment involving Mark Hurd, co-CEO with Catz in the past, was the cause of last year’s loss. He died in 2019

Oracle’s adjusted operating margin increased from 39% in the previous quarter to 41% this quarter.

Oracle, according to Catz, is not done integrating Cerner.

“We are already having some level of savings but ultimately just so that you understand, our expectation is we will run them at typical Oracle margins,” she said. “So we’ve got quite a way to go. And I think over the next couple of quarters you’ll see continued improvement as we’ve done some of our operational integration and simultaneously I think they continue to over-perform for us.”

The cloud services and license support division of the business generated $8.6 billion in revenue, a 14 percent increase from the $8.56 billion consensus estimate of analysts surveyed by StreetAccount. Cloud infrastructure revenue increased by 53% to $1 billion.

At $1.44 billion, revenue from cloud and on-premises licenses exceeded the StreetAccount consensus of $1.24 billion.

In the quarter Prophet declared Composite, a method for accomplices to run the organization’s cloud administrations in their own server farms. In addition, Oracle was penalized $23 million by the Securities and Exchange Commission of the United States for alleged violations of the Foreign Corrupt Practices Act.

Oracle stated that it wanted an adjusted operating margin of 45 percent and organic revenue of $65 billion in the fiscal year 2026, including Cerner’s contribution.

Oracle shares were down about 7% for the year prior to the after-hours move, while the S&P 500 index was down 15%.