Oracle Chairman and Chief Technology Officer Larry Ellison delivers a speech at the Oracle OpenWorld conference in San Francisco on September 16, 2019.
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Oracle Shares of the database software company fell 7% in after-hours trading on Monday after the database software company reported fiscal second-quarter results that missed analysts’ expectations and issued a weaker-than-expected forecast.
The following is a comparison of Oracle and LSEG consensus:
- Earnings per share: Adjusted $1.47, expected $1.48
- income: US$14.06 billion, expected US$14.1 billion
Oracle’s second-quarter sales increased 9% year-over-year.
Net income rose 26% to $3.15 billion, or $1.10 a share, from $2.5 billion, or 89 cents a share, a year ago. Oracle’s cloud services business revenue increased 12% year-on-year to US$10.81 billion, accounting for 77% of total revenue.
Oracle’s biggest growth engine is cloud infrastructure, and its competitors are cloud infrastructure. Amazon, Microsoft and Google As enterprises move workloads out of their own data centers.
The business is booming as demand for computing power to handle artificial intelligence projects soars. Oracle said revenue from its cloud infrastructure unit soared 52% from a year earlier to $2.4 billion.
Oracle said that it had just Yuanallowing social media companies to leverage its infrastructure to help with various projects related to the Llama family of large-scale language models.
“Oracle Cloud Infrastructure trains some of the world’s most important generative artificial intelligence models because we are faster and cheaper than other clouds,” Oracle founder Larry Ellison said in a statement.
Oracle expects revenue to grow 7% to 9% this quarter. At the midpoint of this range, revenue is approximately $14.3 billion. Analysts expected sales of $14.65 billion, according to LSEG. The company said it expected adjusted earnings per share of $1.50 to $1.54. Analysts expected earnings of $1.57 per share.
In September, Oracle raised its fiscal 2026 revenue guidance to $66 billion, about $1.5 billion higher than analysts’ expectations. During that month, Oracle also declare Its cloud division will begin accepting customer orders from more than 131,000 computing clusters NVIDIA “Blackwell” graphics processing unit, used for artificial intelligence model training and related tasks.
The stock has gained more than 80% this year as of Monday’s close and is expected to post its best annual performance since 1999.
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