Oracle (ORCL) Suffers Its Worst Drop of 2025 After Q2 Miss

Oracle ORCL shares slipped 14% on Thursday morning trade after the IT giant reported mixed fiscal second-quarter results.

The company posted adjusted earnings of $2.26 per share on revenue of $16.06 billion, up 14% year-over-year. Analysts had expected $1.64 per share on $16.19 billion in revenue.

Cloud revenue, which includes infrastructure and applications, rose 36% to $8 billion but slightly missed estimates. Infrastructure sales jumped 66% year-over-year to $4.1 billion, while application revenue increased 11% to $3.9 billion. Fusion Cloud ERP revenue grew 18% to $1.1 billion.

Total remaining performance obligations surged 438% to $523 billion, boosted by new deals from Meta META and NVIDIA NVDA, CFO Doug Kehring said.

Oracle's CTO Larry Ellison explained the sale of its Ampere stake was part of a shift to chip neutrality, ensuring flexibility across AI workloads.

Co-CEO Mike Sicilia highlighted AI as a major growth driver across Oracle's cloud, database, and application layers, automating complex processes for banking, healthcare, and enterprise clients.