Oracle missed Wall Street expectations for third-quarter revenue, weighed down by softer enterprise spending on its cloud infrastructure services, and strong competition from larger players.

The company reported revenue of $14.13 billion Monday, compared with estimates of $14.39 billion, according to data compiled by LSEG.

Shares of the Austin, Texas-based company were down 1.23% in premarket trading Tuesday.

Despite seeing healthy demand for its cloud services, Oracle's overall growth has been pressured by the presence of market leaders such as Microsoft and Amazon, which dominate the cloud computing sector.

To address this, the company has partnered with these so-called hyperscalers to integrate its own cloud with theirs, allowing customers to run operations across multiple software and giving Oracle's services more exposure.

Cloud revenue in the third quarter rose 23% to $6.2 billion.