Oracle reported quarterly earnings that trailed Wall Street expectations on Thursday and announced a $13 billion stock buyback. Shares fell more than 2 percent after the announcement.
The company handed in first-quarter earnings of 62 cents per share on $8.60 billion in sales. The company also said it plans to "roll out" a database cloud service next week.
Analysts had expected Oracle to report earnings of 64 cents a share on $8.78 billion in revenue, according to a consensus estimate from Thomson Reuters.
Oracle also announced that Larry Ellison would step down as CEO of the company he founded. The business software maker promoted Safra Catz and Mark Hurd to replace him.
Software and cloud revenue grew 6 percent to $6.60 billion, while hardware systems revenue dropped 8 percent to $1.2 billion.
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Oracle has not exceeded 4 percent revenue growth since 2011, despite previously having been considered a major high growth company. The California-based company has largely fueled its recent growth through acquisitions, Scott Kessler, equity analyst at S&P Capital IQ, told CNBC.
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In August, Oracle sued the state of Oregon, alleging that the state's health insurance exchange was using its software without paying millions in disputed bills.
—By CNBC staff