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Larry Ellison, president and chief technology officer of Oracle, speaks at the Oracle OpenWorld conference in San Francisco on September 16, 2019.
Justin Sullivan | Getty Images News | fake images
Oracle Shares fell 7% in extended trading on Monday after the database software company reported fiscal second-quarter results that missed analyst estimates and issued a weaker-than-expected forecast.
Here’s how Oracle fared compared to the LSEG consensus:
- Earnings per share: $1.47 adjusted vs. $1.48 expected
- Revenue: $14.06 billion vs. $14.1 billion expected
Oracle’s second quarter sales grew 9% year over year.
Net income rose 26% to $3.15 billion, or $1.10 per share, from $2.5 billion, or 89 cents per share, a year earlier. Revenue in Oracle’s cloud services business increased 12% from a year ago to $10.81 billion, representing 77% of total revenue.
Oracle’s biggest growth driver has been cloud infrastructure, with which it competes Amazon, microsoft and Google as enterprises move workloads out of their own data centers.
Business is booming due to growing demand for computing power that can handle artificial intelligence projects. Oracle said revenue at its cloud infrastructure unit soared 52% from a year earlier to $2.4 billion.
Oracle said it just signed an agreement with Goalallowing the social media company to use its infrastructure to help with various projects related to the Family called great linguistic models..
“Oracle Cloud Infrastructure trains several of the world’s leading generative AI models because we are faster and less expensive than other clouds,” said the Oracle founder. Larry Ellison he said in a statement.
For the current quarter, Oracle expects revenue growth of 7% to 9%. At the midpoint of that range, revenue would be about $14.3 billion. Analysts had expected sales of $14.65 billion, according to LSEG. The company said it expects adjusted earnings of $1.50 to $1.54 per share. Analysts expected earnings per share of $1.57.
In September, Oracle raised its revenue guidance for fiscal year 2026 to $66 billion, about $1.5 billion more than analysts projected. During that month, Oracle also announced that its cloud unit would begin accepting customer orders for so-called computing clusters derived from more than 131,000 NVIDIA “Blackwell” graphics processing units, used for training AI models and related tasks.
As of Monday’s close, the stock was up more than 80% this year and was on track for its best annual performance since 1999.
