"Yesterday, Oracle reported financial results for its second quarter of fiscal 2026. To say investors were disappointed in the results is an understatement, given how poorly ORCL shares are performing in premarket trading this morning. 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 posted second-quarter fiscal 2026 results with non-GAAP EPS up 54% and total revenue up 14%, but revenue of $16.1 billion missed analysts' $16.21 billion expectation. ORCL shares plunged over 12% in premarket trading after the revenue shortfall. New agreements with Nvidia and Meta raised Oracle's remaining performance obligations to $523 billion but prompted investor worry about circular spending, where companies invest in each other and pass money back and forth. Renewed fears of an AI bubble contributed to declines in major AI chip stocks including AMD, Arm, Broadcom, and Intel.
Read at Fast Company
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