Oracle Corp.’s cloud choices and its Cerner enterprise had been highlights of the application company’s 2nd-quarter final results, analysts say.

Oracle
ORCL,
-.89%
conquer Wall Street’s prime- and bottom-line expectations with its fiscal 2nd-quarter results on Monday, even nevertheless the company shipped a mixed outlook, exceeding the consensus check out with the implied earnings forecast but missing with its revenue targets.

Nonetheless, the report was “practically fantastic,” in the see of Bernstein analyst Mark Moerdler.

“The toughness of the quarter and the advice carries on to prove how well positioned Oracle is to temperature the financial turbulence successfully,” he wrote, although reiterating an outperform score and bumping up his price tag focus on by a buck, to $103. “As we have written previously and this quarter even more validated, we imagine Oracle is the most effective chance/reward in software package.”

Lifted by the outcomes, Oracle’s stock rose 4.6% soon after the current market opened on Tuesday. Oracle’s inventory has fallen 2.8% in 2022, when compared with the S&P 500’s
SPX,
+.73%
decrease of 14.5%.

In a note introduced on Tuesday, JPMorgan pointed to health and fitness throughout Oracle’s company and to ongoing momentum about the company’s Oracle Cloud Infrastructure (OCI) choices. Oracle noted that a number of $1 billion-plus OCI deals shut for the duration of the quarter, which very likely includes a “large win” from Amazon.com Inc.’s
AMZN,
+2.14%
Amazon World wide web Products and services, according to JPMorgan.

Now browse: Oracle stock rises as earnings and revenue conquer, but financial gain forecast will come in slightly small

“Overall, we believe that Oracle’s resilient, sticky, and largely recurring earnings stream positions the enterprise properly to relatively outperform in a post-pandemic natural environment,” wrote JPMorgan analyst Mark Murphy. “We are encouraged by the fundamental natural profits growth and solid natural and organic backlog growth in the the latest quarter and imagine the cloud change proceeds to progress.”

Oracle’s acquisition of electronic-health-related-information enterprise Cerner is also driving automation in world wide healthcare, in accordance to Murphy. The tech huge completed its $28.3 billion acquisition of Cerner in June.

People sentiments were echoed by Stifel analyst Brad Reback.

“Oracle created reliable [fiscal second quarter 2023] benefits,” he wrote in a take note released on Tuesday. He said the company’s final results had been boosted by its Cerner organization, which contributed $1.5 billion to Oracle’s income, and by sound overall performance from Oracle’s Software and Infrastructure segments.

“[Earnings per share] was also modestly improved as the organization garners cost savings from the Cerner integration and gains from increasing Cloud scale,” he extra.

Reback pointed out that that Oracle is investing greatly, with money expenses raising to $2.4 billion to meet accelerating demand from customers, with triple-digit infrastructure-as-a-provider bookings development.

“According to administration CapEx is expected to keep at this level for the up coming few quarters,” Reback wrote. “Given the near-time period Cerner tailwinds and current Oracle consumers lifting and shifting [on-premises] work masses to the Oracle Cloud, we count on regular short-term outcomes.”

Relevant: Oracle to get Cerner in deal valued at $28.3 billion, confirming before report

Stifel lifted its Oracle cost focus on to $75 from $72 Tuesday.

Of 31 analysts surveyed by FactSet, 11 have an over weight or invest in ranking, 17 have a keep rating and three have an underweight or sell rating.