"As of the time of this writing, ORCL shares are down over 12% as investors unpack its results: On the surface, the numbers look good. Non-GAAP earnings per share (EPS) were up 54% and total revenue was up 14%. However, as noted by CNBC, while Oracle's non-GAAP EPS beat LSEG analyst expectations of $1.64, analysts were expecting higher total revenue figures: $16.21 billion versus the $16.1 billion Oracle delivered."
"That discrepancy caused the stock to tumble, even after the company announced new agreements with major AI investors, Nvidia and Meta. As noted by Investopedia, although these agreements have helped boost Oracle's remaining performance obligations to $523 billion, they have also raised investor concerns about circular spending in the AI industry."
Oracle reported fiscal Q2 2026 non-GAAP EPS up 54% and total revenue up 14%. Revenue of $16.1 billion slightly missed analyst expectations of $16.21 billion, prompting heavy selling that pushed ORCL shares down more than 12% in premarket trading. New agreements with Nvidia and Meta raised Oracle's remaining performance obligations to $523 billion but intensified investor concern about circular spending, where companies invest in each other and effectively pass money back and forth. Those concerns revived AI bubble fears and weighed on AI-related chip stocks, with Advanced Micro Devices, Arm Holdings and Broadcom posting declines.
Read at Fast Company
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