Oracle’s net income rose 26% from a year earlier, to $3.15 billion. Revenue from cloud services and license support sales increased 12%, to $10.8 billion, accounting for 77% of the company’s total, while sales of cloud and on-premises licenses inched up 1%, to $1.2 billion.

The software giant reported $4.21 billion in profit, or $1.47 per share, for the three months that ended in late November.

Oracle's shares sank over 8% on Tuesday in premarket trading after its quarterly revenue fell short of expectations, hindered by fierce competition among database and cloud services providers. The cloud computing company is on track to lose about $45 billion in market capitalization at current share price levels of $174.