Oracle Corporation (NYSE:ORCL) reported mixed Q1/22 results with EPS of $1.03 being above the consensus estimate of $0.97. Quarterly revenue grew 3.8% year-over-year to $9.73 billion, missing the consensus by 30bps.

The management guided Q2 revenue growth of 3–5% year-over-year, which is relatively in line with the Street estimate of 4.3% growth.

Following the results, the company’s shares were trading around 3% lower today.

According to the analysts at Oppenheimer, the company has been slow to transition to the cloud to date but recently has committed to incremental investments to capture cloud demand. The analysts expect these investments to drive sustainable mid-single digit revenue growth as the mix shifts towards cloud assets and away from on premise software. However, they expect incremental investments to weigh on earnings and cash flow generation in the medium term, limiting multiple expansion and share appreciation.