Oracle Corporation said revenues rose 18 percent to $12.4 billion in fiscal 2023 Q3 as Cerner contributed $1.5 billion to total revenues.
“Since June of last year when we acquired Cerner, that business has increased its healthcare contract base by approximately $5 billion,” said Oracle Chairman and CTO, Larry Ellison.
Oracle forecast fourth-quarter revenue to grow between 15 percent and 17 percent. Oracle remained bullish on demand for its cloud software following the recent acquisition of electronic medical records firm Cerner.
Oracle has been beefing up its offerings with a focus on subscriptions to win large customers and better compete in the booming cloud services market dominated by Microsoft and Amazon.com.
Oracle’s Cloud revenue jumped 45 percent to $4.1 billion in the third quarter. Oracle’s Cloud services and license support revenues grew 17 percent to $8.9 billion. Oracle’s Cloud license and on-premise license revenues were unchanged at $1.3 billion.
Q3 operating income was $3.3 billion with operating margin of 26 percent.
“Oracle’s cloud businesses now exceed $16 billion in annualized revenue. We remain the overwhelming market leader in Cloud ERP with approximately 10,000 Fusion ERP customers and over 34,000 NetSuite ERP customers,” Oracle CEO Safra Catz said in an earnings report.