Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Oracle shares slide on earnings and revenue miss

Dec 09, 2024 - cnbc.com
Oracle's shares dropped 7% in extended trading after the company reported fiscal second-quarter results that missed analysts' expectations. The company posted adjusted earnings per share of $1.47, slightly below the expected $1.48, and revenue of $14.06 billion, just shy of the anticipated $14.1 billion. Despite this, Oracle's sales grew 9% year over year, with net income rising 26% to $3.15 billion. The cloud services business, which makes up 77% of total revenue, saw a 12% increase, while the cloud infrastructure unit experienced a significant 52% growth, driven by demand for AI-related computing power.

Oracle recently signed an agreement with Meta to support projects related to the Llama family of large language models, highlighting its competitive edge in AI model training. The company raised its fiscal 2026 revenue guidance to $66 billion, surpassing analysts' projections. Additionally, Oracle announced plans to offer computing clusters using Nvidia "Blackwell" GPUs for AI tasks. The stock has surged over 80% this year, marking its best annual performance since 1999.

Key takeaways:

  • Oracle's fiscal second-quarter earnings and revenue fell slightly short of analysts' expectations, with earnings per share at $1.47 and revenue at $14.06 billion.
  • Oracle's cloud services business, which accounts for 77% of total revenue, saw a 12% increase in revenue year over year, with cloud infrastructure revenue soaring 52% to $2.4 billion.
  • Oracle signed an agreement with Meta to use its infrastructure for projects related to the Llama family of large language models, highlighting its competitive edge in AI model training.
  • Oracle's stock has risen over 80% this year, marking its best annual performance since 1999, and the company raised its fiscal 2026 revenue guidance to $66 billion.
View Full Article

Comments (0)

Be the first to comment!