(Reuters) – Oracle Corp missed quarterly revenue estimates on Thursday, as businesses slowed down IT spending against the backdrop of a sobering economic outlook.
Back-to-office and hybrid work have pushed up demand for the company’s suite of cloud software, especially from large businesses.
However, Oracle has yet to find its footing in the booming cloud services market dominated by tech heavyweights Microsoft Corp and Amazon.com Inc.
A stronger dollar and rising costs have prompted companies to be more cautious about their spending, further slowing demand for Oracle’s software.
Total revenue rose 18% to $12.39 billion in the third quarter ended Feb. 28, but was slightly below a consensus of $12.42 billion from 21 analysts, according to Refinitiv.
Oracle’s net income fell to $1.89 billion, or 68 cents per share, in the quarter, from $2.32 billion, or 84 cents per share, a year earlier.
Shares in the company fell 5% in extended trading.
(Reporting by Eva Mathews in Bengaluru; Editing by Krishna Chandra Eluri)