Oracle Corporation (NYSE:ORCL) stock was under pressure in premarket, down 8.6% to $105.18, after its quarterly results disappointed.
The servers and cloud services provider announced second-quarter fiscal 2024 revenue that rose 5% year over year to $12.9 billion but was short of Wall Street expectations, pitched at $13.05 billion.
The company’s adjusted earnings per share (EPS) for the period of $1.34, though, edged past Wall Street expectations albeit slightly.
"Demand for our Cloud Infrastructure and Generative AI services is increasing at an astronomical rate," Oracle CEO Safra Catz said in a statement.
"Our cloud businesses are now at nearly a $20 billion annual revenue run rate, and cloud services demand continues to grow at unprecedented levels," she added.
Oracle’s 2Q revenue from cloud services and license support increased 12% to $9.64 billion but missed the consensus estimate of $9.71 billion.
Its cloud infrastructure revenue during the quarter, however, surged 52% to $1.6 billion.
Oracle's cloud infrastructure clients include Elon Musk’s artificial intelligence (AI) startup xAI, Halliburton and Samsung.
The underwhelming quarterly performance evidently provided a profit-taking opportunity after Oracle shares had gained close to 40% for 2023 to date (prior to Monday’s earnings release).