Oracle Corp (NYSE:ORCL, XETRA:ORC) shares fell about 6% afterhours as it reported a slight revenue miss for the fiscal second quarter.
Oracle reported revenue growth of 14% at $16.1 billion, at the low end of its guidance range of 14% to 16%. This missed Wall Street estimates of $16.15 billion.
Earnings per share, however, were sharply higher than expected at $2.26, up 54%, compared to estimates of $1.64.
Remaining Performance Obligations (RPO), which reflect contracted but not yet recognized revenue, reached $523 billion, up 438% year-over-year. Oracle said the increase was highlighted by new commitments from major customers, including Meta and Nvidia.
Oracle’s cloud business showed strong growth, with combined Cloud infrastructure (IaaS) and Cloud applications (SaaS) revenue climbing 34% to $8 billion, in line with Street expectations.
IaaS revenue surged 68% to $4.1 billion, missing expectations of 74% growth, while SaaS revenue grew 11% to $3.9 billion. Specific SaaS offerings saw growth as well, with Fusion Cloud ERP revenue rising 18% to $1.1 billion and NetSuite Cloud ERP revenue up 13% to $1 billion.
Oracle’s results were supported by a $2.7 billion pre-tax gain from the sale of its interest in Ampere, the company’s former chip business.
“We sold Ampere because we no longer think it is strategic for us to continue designing, manufacturing and using our own chips in our cloud datacenters,” Oracle chairman and chief technology officer Larry Ellison said in a statement.
He added that Oracle will maintain a “chip-neutral” strategy, working with multiple CPU and GPU suppliers to remain flexible amid evolving AI technologies.