In the fiscal 2020 third quarter ended Feb. 29, net income slipped 6.3% to $2.57 billion from $2.75 billion in the year-earlier quarter.
Earnings per share increased to 79 cents from 76 cents as shares outstanding declined 9.6% to 3.27 billion. Adjusted earnings per share were 97 cents, up from 87 cents.
Analysts surveyed by FactSet projected earnings per share of 74 cents on a GAAP basis and 96 cents adjusted.
Revenue edged up 1.9% to $9.8 billion from $9.61 billion.
Analysts surveyed by FactSet forecast revenue of $9.75 billion for the latest quarter.
"We had an extremely strong quarter with revenue growing 3% in constant currency,” Chief Executive Safra Catz said in a statement.
"Subscription revenues, made up of cloud services and license support revenue, grew 5% in constant currency. These consistently growing and recurring subscription revenues now account for 71% of total company revenues, thus enabling a sequential increase in our operating margin, and double-digit non-GAAP earnings per share growth in the third quarter."
Oracle was slow to adapt to the cloud but is now finding its footing, analysts say. Last month, the company said it created new data centers in five countries and said it planned an additional 36 locations by the end of 2020.
At last check after hours, Oracle shares traded up 3.8%. The stock dropped 11% to $39.80 during the regular session Thursday amid a market rout.