oracle Shares slipped greater than 7% on Tuesday afternoon, a day after the database software company reported fiscal second-quarter results that fell wanting analysts' estimates and issued weaker-than-expected guidance.
Here's how Oracle performed in comparison with the LSEG consensus:
- Earnings per share: $1.47 adjusted vs. $1.48 expected
- Revenue: $14.06 billion versus expected $14.1 billion
Oracle's second-quarter revenue rose 9% year-over-year.
Net income rose 26% to $3.15 billion, or $1.10 per share, compared with $2.5 billion, or 89 cents per share, a 12 months earlier. Revenue at Oracle's cloud services business rose 12% 12 months over 12 months to $10.81 billion and accounted for 77% of total revenue.
Oracle's biggest growth driver has been the cloud infrastructure on which the corporate competes Amazon, Microsoft And Google as corporations move workloads from their very own data centers.
Business is booming resulting from increasing demand for computing power that may handle artificial intelligence projects. Oracle said revenue from its cloud infrastructure division rose 52% from a 12 months ago to $2.4 billion.
Oracle said it had just signed an agreement with MetaThis allows the social media company to make use of its infrastructure to assist with various projects related to the Llama family of huge language models.
“Oracle Cloud Infrastructure trains several of the world’s most important generative AI models because we are faster and more cost-effective than other clouds,” Oracle founder Larry Ellison said in a press release.
For the present quarter, Oracle expects revenue growth of seven% to 9%. At the center of this range, sales can be around $14.3 billion. Analysts expected revenue of $14.65 billion, in line with LSEG. The company said it expected adjusted earnings of $1.50 to $1.54 per share. Analysts had expected earnings per share of $1.57.
In September, Oracle raised its fiscal 2026 revenue forecast to $66 billion, which was about $1.5 billion greater than analysts had predicted. This month also Oracle announced that its cloud unit would begin accepting customer orders for so-called computing clusters of greater than 131,000 Nvidia “Blackwell” graphics processing units used for AI model training and related tasks.
As of Monday's close, the stock is up greater than 80% this 12 months and is heading for its best annual performance since 1999.
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