Oracle Financial Services share price extended gains for the second consecutive trading session even after the company clarified that the earnings of its parent company—Oracle Corp—have no material impact on the company's business.
The stock rose over 3% during the trade on Tuesday. The scrip had advanced 10% on Wednesday.
The rally came after parent Oracle's highly optimistic guidance on the cloud infrastructure business, even after the company missed street expectations.
The Q1 results and guidance led to Oracle Corp's shares rising as much as 35% on Wednesday, briefly making chairperson Larry Ellison the richest man in the world in the process.
What Does Oracle Fin Services Do?
Oracle Financial Services is a fintech company that provides financial technology solutions to the BFSI industry.
The company's mission is to help banks and financial institutions across to modernise their banking systems and accelerate digital transformation.
OFSS primarily operates through two main segments, including the product business, which drives 91% of their revenue.
The product segment includes services such as cloud-based solutions (SaaS), product enhancements and product-related consulting, among others.
Some of the key offerings in this segment include Oracle FLEXCUBE (a banking platform), Oracle Banking Digital Experience, Oracle Banking APIs and Oracle Financial Services Analytical Applications (OFSAA).
Oracle Financial Services has a presence in 150 countries, as per the FY25 annual report.
In the June quarter of the ongoing financial year, the company reported a 4% increase in net profit on a year-on-year basis, while revenue from operations improved 6%.
While product business once again drove most of the revenue, the services business posted stronger growth of 22%, which may signify that consulting and business process services may be gaining traction of late.
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