Larry Ellison, Oracle's co-founder and chief technology officer, appears at the Formula One British Grand Prix in Towcester, U.K., on July 6, 2025.
Oracle shares fell 7% in extended trading on Wednesday after the database software maker reported lower quarterly revenue than expected despite booming demand for its artificial intelligence infrastructure.
Here's how the company did in comparison with LSEG consensus:
Earnings per share: $2.26 adjusted vs. $1.64 expected
$2.26 adjusted vs. $1.64 expected Revenue: $16.06 billion vs. $16.21 billion expected
Oracle's revenue grew 14% from a year ago in the quarter that ended Nov. 30, according to a statement. Net income, rose to $6.14 billion, or $2.14 per share, from $3.15 billion, or $1.13 per share, in the same quarter a year earlier. Adjusted earnings exclude stock-based compensation.
The company posted $7.98 billion in cloud revenue, more than the $7.92 consensus among analysts polled by StreetAccount. Cloud infrastructure revenue totaled $4.1 billion. Software revenue fell 3% to $5.88 billion, missing the $6.06 billion average analyst estimate.
Remaining performance obligations, a measure of contracted revenue that hasn't yet been recognized, soared 438% to $523 billion, topping the $501.8 billion average analyst estimate, according to StreetAccount. Doug Kehring, Oracle's principal financial officer, said in the release that RPO were driven "by new commitments from Meta , Nvidia and others."
Over the past decade, Oracle has diversified its business beyond databases and enterprise software and into cloud infrastructure, where it competes with Amazon, Microsoft and Google. Those companies are all vying for big AI contracts and are investing heavily in data centers and hardware necessary to meet expected demand.
OpenAI, which sparked the generative AI rush with the launch of ChatGPT three years ago, has committed to spending more than $300 billion on Oracle's infrastructure services over five years.
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