Why did Oracle stock drop after its earnings report?

Oracle's stock fell because its quarterly revenue of $16.06 billion did not meet the $16.21 billion projected by Wall Street analysts.

How is Oracle's AI segment performing?

Oracle Cloud Infrastructure (OCI), the company's AI segment, showed strong performance with revenue climbing 68% to $4.1 billion.

What is Oracle's RPO and why is it important?

Oracle's RPO, or remaining performance obligations, reached $523 billion, a 440% increase, indicating substantial future contracted revenue.

Home / Business and Economy / Oracle Stock Dives on Revenue Miss

Oracle Stock Dives on Revenue Miss

11 Dec

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Summary

Oracle's quarterly revenue fell short of Wall Street expectations.
Despite revenue concerns, AI segment OCI revenue climbed 68%.
Remaining performance obligations soared nearly 440% due to new customer commitments.

Oracle's stock plummeted more than 6% in after-hours trading on Wednesday, as the technology giant announced its fiscal second-quarter revenue missed Wall Street's expectations. The company posted revenue of $16.06 billion, a 14% increase year-over-year, but shy of the $16.21 billion analysts had projected.

Despite the overall revenue miss, Oracle's crucial AI segment, Oracle Cloud Infrastructure (OCI), demonstrated robust growth, with revenue climbing 68% to $4.1 billion, meeting analyst estimates. Furthermore, the company's remaining performance obligations (RPO), a key indicator of future revenue, surged by nearly 440% from the previous year to $523 billion, driven by significant new commitments from major clients.

However, persistent concerns about the company's mounting debt and its reliance on partners like OpenAI have fueled investor apprehension. The stock has seen a notable decline of over 30% from its September peak, and the cost to insure Oracle's debt against default has reached its highest point since 2009, signaling investor unease about the tech firm's financial stability.