Mrzorro
12-11

Oracle Shares Tank 11% After-Hours as Cloud Revenue Misses Estimates


$Oracle(ORCL)$   shares declined more than 11% in extended trading Wednesday after the company reported fiscal second quarter cloud revenue that missed analysts' estimates, overshadowing an earnings beat and better-than-expected bookings. 

Cloud revenue rose 34% to $8 billion, falling short of the $8.035 billion expected by analysts, according to estimates compiled by Bloomberg. Total revenue jumped 14% to $16.06 billion, compared with the average estimate of $16.205 billion. 

Those misses outweighed a 15% increase in the company's remaining performance obligations, a measure of bookings, to $523 billion. That's better than the average of estimates that called for $519.4 billion. Investors also shrugged off a 38% beat in adjusted earnings, the biggest since at least 2015. 

Adjusted earnings rose to $2.26 a share, from $1.47 a year earlier. That also exceeded consensus that called for $1.64 a share, according to estimates compiled by Bloomberg.

“MultiCloud database revenue from Amazon, Google and Microsoft grew at the incredible rate of 1,529% in Q1,” Oracle Chairman and CTO Larry Ellison said in the earnings release. “We expect MultiCloud revenue to grow substantially every quarter for several years as we deliver another 37 datacenters to our three Hyperscaler partners, for a total of 71."

That heavy concentration of revenue from hyperscalers has caused jitters among investors amid a growing debate over a potential bubble in artificial intelligence spending. Any pullback in capital spending later could magnify the risk for Oracle. 

Before the financial results were released, Oracle's options market were pricing in a 10% move in the share price up or down a day later.  



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Oracle Deepens AI Anxiety: Will It Accelerate the Sell-Off?
Oracle reported its fiscal Q2 2026 results after the market closed on Wednesday, with revenue and cloud revenue both falling short of analyst expectations. The company also posted –$10 billion in free cash flow for the quarter. At the same time, Oracle raised its full-year capital expenditure guidance, saying it now expects to spend about $15 billion more than previously planned. These updates triggered a sharp reaction in the market — Oracle’s share price plunged more than 10%.
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