Net profits at Oracle fell in the third quarter to $540m (£300m) from the $635m (£353m) for the same quarter last year.
The smaller profit came on the back of an 18% increase in sales to $2.95bn (£1.63bn).
Oracle said that despite the profit fall, new database licence sales in the quarter were up 12% to $782m (£434m).
Oracle co-president and interim chief financial officer Safra Catz said the quarter was one of transition, following the acquisition and integration of PeopleSoft, and predicted a much stronger fourth quarter.
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Oracle chief executive officer Larry Ellison said, "Solid growth in our database business has enabled Oracle to take market share from IBM all year long."
Ellison cited a report from analyst IDC which said Oracle had increased its database market share from 40.3% to 41.3% over the past 12 months, while runner-up IBM saw its share drop from 31.8% to 30.6%.
"Oracle's gain in market share highlights the accelerating acceptance of Oracle Database Grids as replacements for IBM mainframes," claimed Ellison.