Rising margins in conjunction with the top-line growth will be an added advantage to boost the bottom line in the future. Oracle’s SaaS revenues are growing faster than this rate, so it certainly appears to be moving in the right direction in terms of market share. Future Margins Are Looking StrongOn the margins front, the SaaS business is on the right track to reach 80% gross margin as guided by the company. On the other hand, IaaS margins are seeing pressure, but this is normal as the business is undergoing high expenses and investments in the initial phases. All of these factors indicate margin expansion for Oracle over the next few years, which should lead to future earnings growth.

Source: Forbes June 22, 2017 20:37 UTC