"Oracle missed its quarterly revenue estimates, causing its shares to fall by more than 6% after hours. Adjusted EPS: $2.26 vs. $1.64 expected Revenue: $16.06 billion vs. $16.21 billion expected Despite the miss, Oracle still saw 14% year-over-year revenue growth in the quarter ending November 30. Net income jumped to $6.14 billion, or $2.14 per share, up sharply from $3.15 billion, or $1.13 per share, a year earlier."
"In its September earnings report, Oracle stunned Wall Street with a surge in cloud bookings tied to AI workloads, a boom that sent the stock to a record high. But the rally didn't last. Shares have since tumbled roughly a third as investors grow skittish about the enormous capital required to keep building data centers and whether Oracle's biggest customer, OpenAI, can actually deliver on the multibillion-dollar cloud commitments it's making."
"But the rally didn't last. Shares have since tumbled roughly a third as investors grow skittish about the enormous capital required to keep building data centers and whether Oracle's biggest customer, OpenAI, can actually deliver on the multibillion-dollar cloud commitments it's making. "Capex & financing needs have been the biggest investorquestion over the last two months, weighing on the stock," wrote Derrick Wood, an analyst at TD Cowen."
Oracle reported adjusted EPS of $2.26 versus $1.64 expected and revenue of $16.06 billion versus $16.21 billion expected for the quarter ending November 30. Revenue rose 14% year-over-year. Net income increased to $6.14 billion, or $2.14 per share, from $3.15 billion, or $1.13 per share a year earlier. Shares fell more than 6% in after-hours trading following the revenue shortfall. Oracle is investing heavily in AI and expanding data-center capacity to capture cloud and AI workload demand. Investors are concerned about the large capital and financing needs and reliance on major customers such as OpenAI.
Read at Business Insider
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