Oracle (ORCL) Q2 2025 Earnings Report

oracle Shares fell 7% in extended trading on Monday after the database software company reported fiscal second-quarter results that fell short of analysts’ estimates and issued weaker-than-expected guidance.

Here’s how Oracle performed compared to the LSEG consensus:

• Earnings per share: $1.47 adjusted vs. $1.48 expected
• Revenue: $14.06 billion versus expected $14.1 billion

Oracle’s second-quarter revenue rose 9% year-over-year.

Net income rose 26% to $3.15 billion, or $1.10 per share, compared with $2.5 billion, or 89 cents per share, a year earlier. Revenue at Oracle’s cloud services business rose 12% year over year to $10.81 billion and accounted for 77% of total revenue.

Oracle’s biggest growth driver has been the cloud infrastructure on which the company competes Amazon, Microsoft And Google as companies move workloads from their own data centers.

Business is booming due to increasing demand for computing power that can handle artificial intelligence projects. Oracle said revenue from its cloud infrastructure division rose 52% from a year ago to $2.4 billion.

Oracle said it had just signed an agreement with MetaThis allows the social media company to use its infrastructure to help with various projects related to the Llama family of large language models.

“Oracle Cloud Infrastructure trains several of the world’s most important generative AI models because we are faster and more cost-effective than other clouds,” Oracle founder Larry Ellison said in a statement.

For the current quarter, Oracle expects revenue growth of 7% to 9%. At the midpoint of this range, sales would be around $14.3 billion. Analysts expected revenue of $14.65 billion, according to LSEG. The company said it expected adjusted earnings of $1.50 to $1.54 per share. Analysts had expected earnings per share of $1.57.

In September, Oracle raised its fiscal 2026 revenue forecast to $66 billion, which was about $1.5 billion more than analysts had predicted. This month, Oracle also announced that its cloud unit would begin accepting customer orders for so-called computing clusters, derived from over 131,000 Nvidia “Blackwell” graphics processing units used for training AI models and related tasks.

As of Monday’s close, the stock is up more than 80% this year and is heading for its best annual performance since 1999.

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