Oracle Earnings Beat Masks Revenue Shortfall as Cloud Backlog Swells
Oracle's fiscal Q2 delivered a paradox: soaring earnings but disappointing revenue. The software giant posted $2.26 adjusted EPS, obliterating the $1.64 consensus, though $0.91 came from monetizing its Ampere stake. Revenue grew 14% to $16.06B yet missed estimates by $130M.
The real story lies in commitments. Oracle's backlog ballooned to $523B (+$68B QoQ), fueled by cloud deals with Meta and Nvidia. But guidance of 19-21% Q3 growth underwhelmed, sparking an 11% after-hours rout that dragged AI peers like Nvidia down.
Investors punished the mixed report despite Oracle becoming a critical AI infrastructure play. The selloff reflects Wall Street's dwindling patience for 'show me' stories in tech.