Database software and cloud services specialist Oracle ( ORCL -4.11%) reported fiscal 2025 third-quarter financial results on Monday, March 10, that fell short of analysts' consensus expectations. With an adjusted EPS of $1.47 and revenue of $14.13 billion, both figures were slightly below estimates of $1.49 and $14.38 billion, respectively.

The strength in Oracle Cloud growth is likely to hit the company's gross and operating margins. However, the pros (accelerating revenue and Oracle Cloud Infrastructure growth) likely “outweigh the cons” (mixed Q3, lower margins and free cash flow), Materne added. He tweaked his price target to $185 from $200 after the results.