Oracle Stock Slides After Q3 EPS Miss, Falling Operating Margins and Free Cash Flow

Oracle Corporation ORCL reported third-quarter FY22 sales growth of 4% year-over-year to $10.513 billion, in line with the consensus of $10.51 billion.
Adjusted EPS $1.13, missing the consensus estimates of $1.18.
Cloud services and license support revenues were up 5% in USD and up 8% in constant currency to $7.6 billion. Cloud license and on-premise license revenues were up 1% in USD and up 4% in constant currency to $1.3 billion.
GAAP operating margin was 36%, down 210 bps Y/Y, and non-GAAP operating margin was 46%, down 165 bps Y/Y.
Oracle clocked $10.40 billion in Q3 operating cash flow vs. $14.70 billion Y/Y, and free cash flow of $6.59 billion vs. $12.80 billion
The company declared a quarterly cash dividend of $0.32 per share of outstanding common stock, to be paid to stockholders of record as of the close of business on April 8, 2022, with a payment date of April 21, 2022
Price Action: ORCL shares are trading lower by 6.20% at $72 during the aftermarket session on Thursday.

Earnings Calendar