Key Points

• Oracle missed on the top and bottom lines for the latest quarter.
• The company’s second-quarter sales grew 9% year over year.
• Oracle shares are up more than 80% this year, on pace for their best annual performance since 1999.

Oracle
Shares fell 7% in extended trading on Monday after the database software company reported fiscal second-quarter results that missed analyst estimates and issued a weaker-than-expected forecast.

Here’s how Oracle fared compared to the LSEG consensus:

Earnings per share: Adjusted $1.47 vs. expected $1.48
Revenue: $14.06 billion vs. $14.1 billion expected
Oracle’s second quarter sales grew 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, a year earlier. Revenue in Oracle’s cloud services business increased 12% from a year ago to $10.81 billion, representing 77% of total revenue.

Oracle’s biggest growth driver has been cloud infrastructure, where it competes with Amazon.
, microsoft
and google
as enterprises move workloads out of their own data centers.

Business is booming due to growing demand for computing power that can handle artificial intelligence projects. Oracle said revenue at its cloud infrastructure unit soared 52% from a year earlier to $2.4 billion.

Oracle said it just signed an agreement with Meta
, allowing 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 several of the world’s leading generative AI models because we are faster and less expensive than other clouds,” 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, revenue would be about $14.3 billion. Analysts had expected sales of $14.65 billion, according to LSEG. The company said it expects adjusted earnings of $1.50 to $1.54 per share. Analysts expected 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 projected. During that month, Oracle also announced that its cloud unit would begin accepting customer orders for so-called compute clusters derived from more than 131,000 Nvidia.
“Blackwell” graphics processing units, used for training AI models and related tasks.

As of Monday’s close, the stock was up more than 80% this year and was on track for its best annual performance since 1999.