Shares of the company were up 1.7 percent at $39.29 in extended trading on Thursday.
Like its rivals such as SAP SE , IBM Corp and Microsoft Corp, Oracle has focussed on moving its business towards the cloud-computing model, essentially providing services remotely via data centres rather than selling installed software.
Total revenue from company's cloud-computing software and platform service rose 49.1 percent to $859 million in the fourth quarter ended May 31.
The company added more than 1,600 new cloud software as a service (SaaS) customers and more than 2,000 new platform as a service (PaaS) customers in Q4, Oracle Chief Executive Mark Hurd said.
Oracle Chairman Larry Ellison said he expects the "hyper-growth" experienced by the company's cloud business in 2016 will continue for the next few years.
The 39-year old company, a late entrant into the cloud market, recently acquired cloud companies Textura and Opower.
However, Oracle has come under considerable pressure from nimbler companies in the industry such as Salesforce.com Inc , whose chief executive Marc Benioff has constantly taken potshots at the company.
The company's total revenue fell 1 percent to $10.59 billion, beating analysts' average estimate of $10.47 billion, according to Thomson Reuters I/B/E/S.
Oracle's net income rose to $2.81 billion, or 66 cents per share, in the quarter ended May 31, from $2.76 billion, or 62 cents per share, a year earlier.
Excluding items, it earned 81 cents per share, meeting average analysts' estimate.
Up to Thursday's close, Oracle's stock had risen 5.8 percent this year.
© Thomson Reuters 2016
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