DiFucci added that the Applications business, which grew 27% year-over-year in constant currency, was driven by strength in Healthcare, Retail, and Financial Services. "We believe this is an area of focus as Oracle plans to provide deeper functionality within targeted industries and hence, we would not be surprised to see future M&A activity tied to this strategy," he said.

UBS analyst Brent Thill, was spot-on with his fourth-quarter estimates and maintains his buy rating and $36 price target; however, he added that there is "still work to do in the Cloud and selling the full IT stack story to customers."

Oracle shares are gaining 2.56% in Tuesday trading, last changing hands at $27.82.

-- Written by Nathalie Pierrepont in New York.

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