Oracle (ORCL) Q2 2025 earnings report

Oracle shares slid 7% in prolonged buying and selling on Monday after the database software program firm reported fiscal second-quarter outcomes that fell in need of analysts’ estimates and issued a weaker-than-expected forecast.

Right here is how Oracle did in comparison with LSEG consensus:

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

Oracle’s second-quarter gross sales grew 9% 12 months over 12 months.

Internet earnings elevated 26% to $3.15 billion, or $1.10 a share, from $2.5 billion, or 89 cents a share, a 12 months earlier. Income in Oracle’s cloud companies enterprise jumped 12% from a 12 months earlier to $10.81 billion, accounting for 77% of complete income.

Oracle’s largest development engine has been cloud infrastructure, the place it’s competing with Amazon, Microsoft and Google as companies transfer workloads out of their very own knowledge facilities.

The enterprise is booming as a result of hovering demand for computing energy that may deal with synthetic intelligence initiatives. Oracle mentioned income in its cloud infrastructure unit soared 52% from a 12 months earlier to $2.4 billion.

Oracle mentioned it simply signed an settlement with Meta, permitting the social media firm to make use of its infrastructure to assist with numerous initiatives associated to the Llama household of huge language fashions.

“Oracle Cloud Infrastructure trains a number of of the world’s most essential generative AI fashions as a result of we’re quicker and cheaper than different clouds,” Oracle founder Larry Ellison mentioned in an announcement.

For the present quarter, Oracle expects income development of seven% to 9%. On the midpoint of that vary, income could be about $14.3 billion. Analysts have been anticipating gross sales of $14.65 billion, in line with LSEG. The corporate mentioned it expects adjusted earnings of $1.50 to $1.54 per share. Analysts have been calling for earnings per share of $1.57.

In September, Oracle raised its fiscal 2026 income steering to $66 billion, which was about $1.5 billion greater than what analysts projected. Throughout that month, Oracle additionally introduced that its cloud unit would begin taking buyer orders for so-called computing clusters derived from greater than 131,000 Nvidia “Blackwell” graphics processing items, used for AI mannequin coaching and associated duties.

As of Monday’s shut, the inventory is up greater than 80% this 12 months, headed for its greatest annual efficiency since 1999.