Oracle’s Cloud Growth Misses Estimates Despite Strong Infrastructure Demand

Oracle reported a 34% increase in cloud revenue to $7.98 billion for its fiscal second quarter, falling short of analyst expectations. The infrastructure segment saw a sharper 68% jump to $4.08 billion, though it also narrowly missed projections. These results mark the first major test for Oracle's new leadership team following recent executive changes.

The company's remaining performance obligation reached $523 billion, exceeding Wall Street's $519 billion forecast. This divergence between current revenue and future commitments highlights growing uncertainty about when booked business will translate into recognized income.

Oracle's aggressive data center expansion, particularly to support AI workloads for clients like OpenAI, TikTok, and Meta Platforms, continues to drive infrastructure demand. However, rising capital expenditures are drawing investor scrutiny as the company balances growth ambitions with spending discipline.