Oracle Surpasses Q2 Earnings Expectations Despite Slight Revenue Shortfall
Oracle Corporation disclosed a mixed bag of fiscal Q2 2025 results on December 9, 2024. The enterprise software behemoth surpassed earnings expectations, albeit revenue fell marginally short. The adjusted earnings per share stood at $1.47, just shy of the $1.48 consensus estimate. Meanwhile, the total revenue reached $14.06 billion, slightly less than the anticipated $14.1 billion.
The company’s cloud infrastructure business continued to be the star performer, with revenue skyrocketing 52% year-over-year to $2.4 billion. This surge was primarily driven by the massive demand for AI computing power. Oracle’s total cloud services and license support revenues witnessed a 12% growth to $10.8 billion, making up 77% of the total revenue.
In a noteworthy development, Oracle announced a significant partnership with Meta, enabling the social media giant to utilize Oracle’s infrastructure for its Llama AI model projects. CEO Larry Ellison emphasized Oracle Cloud Infrastructure’s role in training several of the world’s most crucial generative AI models, attributing it to being “faster and less expensive than other clouds.” For Q3, Oracle projects a revenue growth of 7% to 9%, slightly below analyst expectations.
Source: https://www.cnbc.com/2024/12/09/oracle-orcl-q2-earnings-report-2025.html