Larry Ellison, Oracle’s president and chief technology officer, speaks at the Oracle OpenWorld conference in San Francisco on September 16, 2019.
Justin Sullivan | Getty Images News | getty images
Oracle Shares fell 7% in extended trading Monday after the database software company reported fiscal second-quarter results that fell short of analysts’ estimates and issued a weaker-than-expected forecast.
Here’s what Oracle did compared to the LSEG consensus:
- earnings per share: $1.47 adjusted vs. $1.48 expected
- Income: $14.06 billion vs. $14.1 billion expected
Oracle’s second quarter sales increased 9% year over year.
Net income rose 26% to $3.15 billion, or $1.10 a share, from $2.5 billion, or 89 cents a share, a year earlier. Revenue at Oracle’s cloud services business rose 12% from a year earlier to $10.81 billion, accounting for 77% of total revenue.
Oracle’s biggest growth engine has been cloud infrastructure, where it is competing Amazon, Microsoft And Google As businesses move workloads out of their data centers.
The business is booming due to the increasing demand for computing power capable of handling artificial intelligence projects. Oracle said revenue at its cloud infrastructure unit rose 52% to $2.4 billion from a year earlier.
Oracle said it has just signed an agreement metaSocial media allows the company to use its infrastructure to help in various projects related to Llama family of large language models,
“Oracle Cloud infrastructure trains many of the world’s most important generative AI models because we are faster and less expensive than other clouds,” said the Oracle founder. larry ellison Said in a statement.
For the current quarter, Oracle expects revenue growth of 7% to 9%. At the midpoint of that range, revenues would be about $14.3 billion. Analysts were expecting sales of $14.65 billion, according to LSEG. The company said it expects adjusted earnings of $1.50 to $1.54 per share. Analysts were calling for earnings of $1.57 per share.
In September, Oracle extended its FY 2026 Revenue Guidance Up to $66 billion, which was about $1.5 billion more than analysts’ estimates. During that month, Oracle also announced Its cloud unit will begin taking customer orders for so-called computing clusters, received from more than 131,000 NVIDIA “Blackwell” graphics processing units, used for AI model training and related tasks.
As of Monday’s close, the stock has risen more than 80% this year, on track for its best annual performance since 1999.
