Oracle Corp (NYSE:ORCL, ETR:ORC) stock plunged afterhours as the software firm’s fiscal second quarter earnings missed Wall Street forecasts.
Earnings per share of $1.47 were short of the consensus of $1.48.
Revenue rose 9% year-over-year to $14.1 billion, short of the consensus of $14.12 billion.
Cloud services and license support revenues increased 12% from the year-ago quarter to $10.8 billion while Cloud license and on-premise licence revenues were $1.2 billion.
Oracle CEO Safra Catz noted “extraordinary” growth in the AI segment of its infrastructure business during the quarter.
“Growth in the AI segment of our Infrastructure business was extraordinary—GPU consumption was up 336% in the quarter—and we delivered the world's largest and fastest AI SuperComputer scaling up to 65,000 NVIDIA H200 GPUs,” Catz said.
“With our remaining performance obligation (RPO) up 50% to $97 billion, we believe our already impressive growth rates will continue to climb even higher.”
Oracle chief technology officer Larry Ellison highlighted that Oracle Cloud Infrastructure trains generative AI models.
“The Oracle Cloud trains dozens of specialized AI models and embeds hundreds of AI Agents in cloud applications,” he said.
“For example, Oracle's AI Agents automate drug design, image and genomic analysis for cancer diagnostics, audio updates to electronic health records for patient care, satellite image analysis to predict and improve agricultural output, fraud and money laundering detection, dual-factor biometric computer logins, and real-time video weapons detection in schools.”
Shares of Oracle traded down 6.4% post-earnings.