Oracle reports earnings and revenue miss.

• Oracle missed on the top and bottom lines for the latest quarter.
• The company's second-quarter sales grew 9% year over year.
• This year, Oracle shares have experienced a rise of more than 80%, setting them on track for their strongest annual performance since 1999.

On Monday, the database software company's shares slid in extended trading after reporting fiscal second-quarter results that missed analysts' expectations.

Here is how Oracle did compared to LSEG consensus:

• Earnings per share: $1.47 adjusted vs. $1.48 expected
• Revenue: $14.06 billion vs. $14.1 billion expected

Oracle's second-quarter sales grew 9% year over year.

Oracle's net income increased by 26% to $3.15 billion, or $1.10 a share, from $2.5 billion, or 89 cents a share, in the previous year. Additionally, the company's cloud services business experienced a 12% increase in revenue from the previous year, accounting for 77% of the total revenue.

Oracle's growth engine has been cloud infrastructure, where it competes with Amazon, Microsoft, and Google as businesses move workloads out of their own data centers. The demand for computing power to handle AI projects has been soaring, leading to a 52% increase in revenue in Oracle's cloud infrastructure unit, reaching $2.4 billion. The company recently announced an agreement with a social media giant, in which the company will use Oracle's cloud computing service to help with its various projects related to the Llama family of large language models.

"Oracle Cloud Infrastructure is the preferred choice for training the world's top generative AI models due to its speed and cost-effectiveness. Recently, Oracle signed an agreement with Meta to use Oracle's AI Cloud Infrastructure and collaborate on the development of AI Agents based on Meta's Llama models."

In September, Oracle raised its fiscal 2026 revenue guidance to $66 billion, which was $1.5 billion more than what analysts projected. Additionally, the company announced that its cloud unit would begin taking customer orders for computing clusters based on over 131,000 "Blackwell" graphics processing units, used for AI-model training and related tasks.

This year, the stock has experienced a rise of over 80%, and it is on track to achieve its best annual performance since 1999.

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