Oracle President and CTO Larry Ellison 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 second-quarter financial results that fell short of analyst estimates and issued a weaker-than-expected forecast.
Here's how Oracle compares 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 rose 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, the previous year. Revenue from Oracle's cloud services business jumped 12% from the previous year 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 Companies move workloads from their data centers.
Business is booming due to the growing demand for computing power that can handle AI projects. Oracle said revenue at its cloud infrastructure unit rose 52% from a year earlier to $2.4 billion.
Oracle said it had just signed an agreement with… deadallowing the social media company to use its infrastructure to help with various projects related to the Llama family of large language models.
“Oracle Cloud Infrastructure trains many of the world's most important AI models because we are faster and less expensive than other clouds,” Larry Ellison, Oracle founder, said in a statement.
For the current quarter, Oracle expects revenue to grow 7% to 9%. In the middle of that range, revenue 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 between $1.50 and $1.54 per share. Analysts were calling for earnings per share of $1.57.
In September, Oracle raised its fiscal 2026 revenue guidance to $66 billion, about $1.5 billion more than analysts expected. During that month, Oracle also announced that its cloud unit would begin taking customer orders for so-called compute clusters drawn from more than 131,000 Nvidia Blackwell GPUs, used for training AI models and related tasks.
As of Monday's close, the stock was up more than 80% this year, on track for its best annual performance since 1999.
