Shares of Oracle (ORCL) are down 10% after the software company reported fiscal second-quarter financial results that missed Wall Street targets across the board.
The Austin, Texas-based company reported earnings per share (EPS) of $1.47 U.S., which missed the consensus forecast of $1.48 U.S. among analysts.
Revenue in the quarter totaled $14.06 billion U.S., which fell short of the $14.10 billion U.S. expected on Wall Street. Oracle’s sales were up 9% from a year earlier.
Management said that revenue in the company’s cloud services business increased 12% from a year earlier to $10.81 billion U.S., accounting for 77% of total revenue.
The company’s biggest growth came from its cloud infrastructure unit, where it’s competing against Amazon (AMZN) and Microsoft (MSFT).
Management at Oracle added that they continue to see strong demand for computing power that can run artificial intelligence (A.I.) applications and models.
Revenue in Oracle’s cloud infrastructure unit rose 52% from a year ago to $2.4 billion U.S. during the latest quarter.
The company’s leadership team said they signed an agreement with Meta Platforms (META) during the quarter.
That deal will see Meta use Oracle’s cloud computing service to help with its various A.I. projects and large language models.
The company most recently hiked its full-year revenue guidance to $66 billion U.S., which was about $1.5 billion U.S. more than what Wall Street had anticipated.
Prior to today (Dec. 10), Oracle’s stock had risen 83% this year and was on track for its best annual performance since 1999. The company’s shares currently trade at $190.45 U.S.
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