Oracle misses Q3 estimates, but strong AI demand drives growth

From Investing.com: 2024-12-10 03:41:37

Oracle’s fiscal second-quarter results fell short of expectations, with adjusted EPS at $1.47 on revenue of $14.06B, missing estimates. Despite this, revenue grew 9% year-over-year in constant currency. Cloud revenue hit $59 billion, up 24% YoY, with OCI growing 52%. RPO climbed by 49% to $97B. Oracle CEO Safra Catz noted AI demand drove OCI revenue up 52%. The company anticipates Q3 revenue growth between 7% and 9%, with total cloud revenue growth between 23% and 25%. Oracle expects total revenue for fiscal 2025 to grow in double digits, with OCI growth exceeding 50%. Wolfe Research analysts raised their price target on Oracle stock from $195 to $205, citing a strong product cycle and AI narrative driving growth. Capital expenditures are set to double in fiscal 2025. Bank of America noted concerns about the scalability of capex with a higher mix of cloud revenue.



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