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Oracle Misses Revenue Target as Stock Slides on AI Spending Concerns

Investor skepticism centers on heavy AI data‑center spending, with the EPS beat boosted by a one‑time gain.

Overview

  • Oracle reported quarterly revenue of $16.06 billion versus $16.21 billion expected, up 14% year over year for the quarter ended Nov. 30.
  • Shares fell roughly 11% in after-hours trading following the mixed results and guidance on investment plans.
  • Adjusted EPS came in at $2.26, topping forecasts, with results aided by the sale of the company’s stake in Ampere Computing.
  • Cloud momentum continued with $7.98 billion in cloud services and $4.1 billion in cloud infrastructure, now about half of total revenue, while software revenue fell 3% and new licenses dropped 21%.
  • Remaining performance obligations surged to about $523 billion, while stepped-up AI data-center capex—about $12 billion in the quarter with a $35 billion annual plan—drew questions about debt and the payoff from large AI contracts, including reported commitments tied to OpenAI.