The software giant's stock moved up 1.5 to 29.5 early in session.
After market close Thursday, Oracle bucked the recent trend in the slumping technology sector by posting strong quarterly results. The company came in with second-quarter profit of $623 million, or 11 cents a share, topping analyst estimates by a penny. The results were up from the $384 million, or 6 cents per share, seen in the same period a year ago.
Revenue rose as well, up from $2.3 billion in 1999 to $2.7 billion this year.
Oracle's database software business grew 19 percent year-over-year, just missing analyst targets, coming in at $775 million. The company's applications business, however, was very strong, jumping 66 percent to $279 million, outpacing analyst estimates.
The bullish outlook for the company was evident in the comments of CFO Jeff Henley, who noted that Oracle's business isn't greatly affected by the PC slowdown. "It's important to point out that not all technology companies are the same," he said.
For the most part, analysts seem to agree. The stock held its rating at a host of brokerages and some raised their estimates. Here's a look.
In his research note, Laidley highlighted the company's strong licensing, database and applications revenues.
"We believe these results were solidly better than published expectations and should be strong enough to convince the skeptics that ORCL's products business is capable of greatness," he added.
Goldman praised the company's performance, highlighting the company's growing traction in the applications market, solid growth in the core database business and operating margins.
The brokerage, however, noted that slower capital spending may impact applications growth more than the company anticipates.