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Oracle Shares Slide After Revenue Miss and Steep AI Spending Plan

Heavy AI data‑center spending, alongside a swelling backlog, is sharpening investor worries about returns.

Overview

  • Oracle reported fiscal Q2 revenue of $16.06 billion versus $16.21 billion expected, while adjusted earnings per share rose to $2.26, topping forecasts.
  • Shares fell about 11% in after‑hours and premarket trading following the results and guidance, extending recent volatility tied to its expansion strategy.
  • Cloud revenue grew 34% to $7.98 billion and infrastructure sales jumped 68% to $4.08 billion, even as traditional software revenue declined 3% with new licenses down 21%.
  • The company disclosed $12 billion in quarterly spending on AI data centers and projected roughly $35 billion in capital expenditures for the year.
  • Remaining performance obligations surged to about $523 billion, above analyst estimates, as investors weighed the hefty commitments and higher debt against future profitability.