Oracle plunges 9% following Q2 revenue miss

investing.com:

Shares of Oracle (NYSE:ORCL) dropped over 9% after-hours today following the announcement of the company's Q2 results. Oracle reported a shortfall in its quarterly revenue, attributed to a challenging economic environment and heightened competition in the cloud computing sector, impacting the demand for its cloud services.

Oracle reported Q2 revenue of $12.9 billion (up 5% year-over-year), missing the consensus estimate of $13.05B. EPS came in at $1.34, compared to the consensus estimate of $1.33.

The company saw a 12% increase in its Cloud services and license support revenue, reaching $9.6B. However, cloud license and on-premise license revenues witnessed a downturn, decreasing 18% to $1.2B.

«Demand for our Cloud Infrastructure and Generative AI services is increasing at an astronomical rate. As a measure of that demand, Oracle's total Remaining Performance Obligations (RPO) climbed to over $65 billion—exceeding annual revenue,” said CEO Safra Catz.