Oracle shares slide on earnings and revenue miss

Oracle shares slid in extended trading on Monday after the database software company reported fiscal second-quarter results that fell short of analysts’ estimates.

Here is how Oracle did compared to 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 increased 26% to $3.15 billion, or $1.10 a share, from $2.5 billion, or 89 cents a share, a year earlier. Revenue in Oracle’s cloud services business jumped 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’s competing with Amazon, Microsoft and Google as businesses move workloads out of their own data centers.

The business is booming from soaring demand for computing power that can handle AI projects. Oracle said revenue in its cloud infrastructure unit soared 52% from a year earlier to $2.4 billion.

The company said that it signed an agreement with Meta in which the social media giant will use Oracle’s cloud computing service to help with its various projects related to the Llama family of large language models.

“Oracle Cloud Infrastructure trains several of the world’s most important generative AI models because we are faster and less expensive than other clouds,” Oracle Chairman and chief technology officer Larry Ellison said in a statement. “And we just signed an agreement with Meta—for them to use Oracle’s AI Cloud Infrastructure—and collaborate with Oracle on the development of AI Agents based on Meta’s Llama models.”

In September, Oracle it raised its fiscal 2026 revenue guidance to $66 billion, which was about $1.5 billion more than what analysts projected. During that month, Oracle also announced that its cloud unit would start taking customer orders for so-called computing clusters derived from over 131,000 Nvidia “Blackwell” graphics processing units, used for AI-model training and related tasks.

The stock is up more than 80% this year, headed for its best annual performance since 1999.

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