Oracle (ORCL) yesterday reported its fiscal Q3 financial results. Cloud Service and AI App giant’s revenue of $12.4 billion (+18.0% YoY) missed estimates by $20 million, which wasn’t a big deal, but markets reacted negatively. Non-GAAP operating income arrived at $5.2 billion, up 11% from last year, while operating cash flow for the quarter was up 11% at $4.3 billion.

Total cloud revenue, SaaS plus IaaS, including Cerner, was $4.1 billion, up 48% in constant currency, with IaaS revenue of $1.2 billion, up 57% and SaaS revenue of $2.9 billion, up 44%. Infrastructure subscription revenues, also including support, were $4.8 billion, up 10% in constant currency. Application subscription revenues, including support but excluding Cerner, were $3.4 billion, up 8% in constant currency. Database subscription revenues, which included database support, were up 3% in constant currency, highlighted by cloud database services, which were up 40%.

Also, Oracle declared $0.40/share quarterly dividend, a 25% increase from prior dividend of $0.32. Forward dividend yield is estimated at 1.84%.

“Our strong quarterly earnings growth was driven by 48% constant currency growth for the total revenue of our two cloud businesses, infrastructure, and applications. 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. Our technically advanced and highly differentiated Gen2 infrastructure business continues to be in a hypergrowth phase —up 65% in Q3 in constant currency.” said Oracle CEO, Safra Catz.

In terms of guidance, total revenues for fiscal Q4, including Cerner, are expected to grow from 17% to 19% in constant currency, while total cloud growth, including Cerner, is expected to grow from 51% to 53% in constant currency. Thus, non-GAAP EPS is expected to grow between 3% and 5% and between $1.59 and $1.63 in constant currency. Non-GAAP EPS is expected to grow between 1% and 3% and be between $1.56 and $1.60 in USD.