Oracle Stock Slides as Revenue Falls Short of Expectations | Global News Avenue

Oracle (ORCL) reported fiscal second-quarter revenue that fell short of analysts’ expectations, sending shares lower in after-hours trading on Monday.

The cloud services giant’s quarterly revenue was $14.06 billion, up 9% year over year and below analyst consensus compiled by Visible Alpha. Net income was $3.2 billion, or $1.10 a share, compared with $2.5 billion, or 89 cents a share, a year earlier, beating expectations. However, adjusted earnings per share were $1.47, slightly below expectations.

Oracle’s cloud services segment revenue was US$10.81 billion, a year-on-year increase of 12%, while cloud infrastructure revenue increased by 52% to US$2.4 billion. CEO Safra Catz calls it “record levels of demand for artificial intelligence.”

Oracle’s stock hit a record high last week amid enthusiasm about the company’s potential to benefit from growing demand for artificial intelligence.

The company’s stock price fell more than 7% in after-hours trading after the news was released. As of Monday’s close, 2024 shares were up more than 80%.