Oracle posted outstanding results for its first fiscal quarter, which ended August 31, 2006. All software segments of Oracle’s business, including database, middleware, and applications, reported very strong growth. The total revenue for the quarter increased 30% to $3.6B, and both net income and software revenue grew 29% over the prior year.
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"There's no doubt we're gaining share across all product lines," said Oracle's CFO, after a quarter where net income grew 29% and revenue grew 30% to $3.6bn.  

Applications license revenue climbed 78% on a constant currency basis. CEO  noted that, in comparison,  saw its application license revenue grow a more modest 8%.  Oracle's president claimed 88 head-to-head wins against SAP in the quarter.

Some commentators noted that, though impressive, Oracle's results may not persist. Unlike industries with huge fixed costs, competitors in the software industry can quickly gain and lose market share through new product launches and mergers.

Ovum noted that the integration of acquisitions such as , , and  now seem to have been accomplished, and that both Oracle and SAP are benefitting from the increasing symbiosis between the middleware and application markets.

SAP replied with a statement noting that it offers "market-leading SOA applications today, while Oracle's next-generation applications exist only in  and won't be delivered until 2008 or beyond."