Oracle's Stock Drops After Missing Revenue and Earnings Targets

The cloud computing giant's second-quarter results fell short of Wall Street expectations, raising concerns about its growth trajectory despite robust AI-driven cloud performance.

Oracle reported fiscal Q2 revenue of $14.06 billion and adjusted earnings per share of $1.47, both narrowly missing analyst estimates of $14.1 billion and $1.48 per share, respectively.
The company's cloud services revenue grew 12% year-over-year to $10.81 billion, with its cloud infrastructure segment surging 52%, driven by AI-related demand.
Oracle's stock fell nearly 8%, marking its worst trading day of 2024, as investors reacted to weaker-than-expected guidance for the next quarter.
Analysts remained optimistic about Oracle's long-term potential, citing its leadership in AI infrastructure and recent high-profile partnerships with Meta, OpenAI, and NVIDIA.
Despite the earnings miss, Oracle's stock has gained over 80% this year, reflecting strong investor confidence in its AI and cloud strategies.