Oracle shares dropped 6% in extended trading on Wednesday, as chief executive officer Safra Catz in a statement announced lower-than-expected guidance for the fourth quarter.

  • The enterprise software firm expects 5% to 7% revenue growth in the fiscal fourth quarter, and $1.20 to $1.24 in adjusted earnings per share.
  • Analysts expected $1.28 in adjusted earnings per share and the equivalent of 4% revenue growth.
  • Quarterly dividends were raised 33% to 32 cents per share from 24 cents per share. Dividends were last raised in 2019 with a 26% increase.
  • Third quarter revenues grew 3% to $10.09 billion versus $10.07 billion expected by analysts. Earnings were also higher at $1.16 per share versus analysts’ $1.11 per share.
  • Cloud license and on-premises license revenues grew 4% to $1.28 billion versus $1.21 billion consensus. Hardware revenue fell 4% below the $843 million consensus.
  • Cofounder Larry Ellison expects a “very, very rapid database growth” next year, but declined to elaborate.