Oracle Posts Higher 2Q Revenue, Profit; Shares Fall After Earnings Miss Estimates

ORCL

By Connor Hart

Oracle posted higher revenue and profit in its fiscal second quarter on continued demand for artificial intelligence, but shares fell after the company missed analyst estimates.

The stock slid 8%, to $175.30, in after-hours trading. Shares ended the regular session having edged 0.6% lower, to $190.45, putting them up 83% since the beginning of the year.

The Austin, Taxas, cloud-software provider on Monday reported a profit of $3.15 billion, or $1.10 a share, for its three months ended Nov. 30, compared with $2.5 billion, or 89 cents a share, for the same period a year earlier.

Adjusted per-share earnings came in at $1.47, just missing the $1.48 that analysts were expecting, according to FactSet.

Revenue rose 8.6% to $14.06 billion, slightly below the $14.12 billion that analysts surveyed by FactSet were projecting.

Chief Executive Safra Catz said that record-level AI demand boosted revenue in the recent quarter. She said she expects Oracle's cloud infrastructure unit to surpass $25 billion in revenue in fiscal 2025, thanks to companies adopting its software to train generative AI models.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

12-09-24 1638ET