Oracle (ORCL) Q2 2025 Earnings Report

Oracle Shares fell 7% in prolonged buying and selling Monday after the database software program firm reported second-quarter fiscal outcomes that fell wanting analyst estimates and issued weaker-than-expected steerage.

Right here's how Oracle carried out in opposition to the LSEG consensus:

• Earnings per share: $1.47 adjusted vs. $1.48 anticipated
• Revenue: $14.06 billion versus $14.1 billion anticipated

Oracle's second-quarter gross sales elevated 9% year-over-year.

Web earnings rose 26% to $3.15 billion, or $1.10 per share, from $2.5 billion, or 89 cents per share, a yr earlier. Income from Oracle's cloud companies enterprise jumped 12% from a yr earlier to $10.81 billion, accounting for 77% of complete income.

Oracle's foremost development driver has been cloud infrastructure, the place the corporate competes with Amazon, Microsoft And Google as corporations transfer their workloads out of their very own information facilities.

The enterprise is booming as a result of rising demand for computing energy able to dealing with synthetic intelligence tasks. Oracle stated income from its cloud infrastructure unit soared 52% from a yr earlier, to $2.4 billion.

Oracle stated it had simply signed an settlement with Metapermitting the social media firm to make use of its infrastructure to contribute to varied tasks associated to Llama family of large language models.

“Oracle Cloud Infrastructure powers lots of the world's most necessary generative AI fashions as a result of we’re sooner and cheaper than different clouds,” stated the Oracle founder. Larry Ellison stated in an announcement.

For the present quarter, Oracle expects income development of between 7 and 9 %. On the midpoint of that vary, income could be about $14.3 billion. Analysts anticipated income of $14.65 billion, in accordance with LSEG. The corporate stated it expects adjusted earnings within the vary of $1.50 to $1.54 per share. Analysts had anticipated earnings per share of $1.57.

In September, Oracle raised its revenue guidance for fiscal year 2026 to $66 billion, about $1.5 billion greater than analysts anticipated. Throughout this month, Oracle additionally announcement that its cloud unit would start taking buyer orders for so-called computing clusters derived from greater than 131,000 Nvidia “Blackwell” graphics processing items, used for coaching AI fashions and associated duties.

As of Monday's shut, the inventory is up greater than 80% this yr, heading for its greatest annual efficiency since 1999.