US EditionOracle Forecasts Miss Wall Street Targets While Spending Rises, Shares Slide 10%
Oracle's adjusted operating income missed targets despite a $2.7 billion gain from selling its Ampere stake, with future contracts rising nearly 15%, shares fell on cloud spending worries.
- On Wednesday, Oracle's second-quarter results showed total revenue of $16.06-billion and adjusted operating income of $6.7-billion, both missing analyst targets from LSEG data.
- Higher capex projections prompted Oracle to raise fiscal 2026 spending by $15 billion, while analysts and investors cited commentary from eMarketer and S&P Global's Visible Alpha on cooling corporate cloud demand.
- Contract and deal metrics reveal Oracle posted adjusted profit of $2.26 per share aided by a one-time $2.7-billion gain from selling its Ampere Computing stake, with future contracts at $523 billion, up 14.94%. Oracle is also building massive data centers for OpenAI.
- Markets reacted as shares fell in extended trading and opened much lower in Frankfurt, while Chief Executive Officer Clay Magouyrk faced investor concern over financing data centers amid higher capex.
- Looking ahead, Oracle forecast 16–18% third-quarter revenue growth and $1.64 to $1.68 EPS, missing estimates, while Larry Ellison said it adopted a chip‑neutral policy and will continue Nvidia chip purchases.
12 Articles
12 Articles
Oracle disappoints the market. The shares of the technological giant fall more than 10% in the market out of New York time after the company announced worse than expected quarter sales figures. In addition, the software group announced that spending on artificial intelligence data centers (AI) will skyrocket at 15 billion more than originally estimated in its fiscal year (which ends in May 2026), an investment that is also taking longer to trans…
The company, founded by multibillionaire Larry Ellison, lost more than 7% in electronic exchanges after the Wall Street fence.
Oracle forecasts miss Wall Street targets while spending rises, shares slide 10%
Dec 10 : Oracle forecast sales and profit that missed analyst estimates on Wednesday, while saying that spending would rise by $15 billion compared with earlier estimates - a sign that big capital outlays to chase AI cloud-computing customers is not turning into profit as fast as Wall Street had expected.Shar
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