Youtube·2025-12-10 21:50Oracle Financial Results - Oracle's EPS reported at $2.26, significantly beating estimates of $1.64 [1] - Revenue for the second quarter came in at 16.06%, missing the expected 16.21% [1] - Cloud revenue reported at $8 billion, slightly below the expected $8.04 billion [1] - Operating margins at 42%, in line with estimates of 42.2% [2] - Operating income for the quarter was $6.72 billion, missing estimates of $6.82 billion [2] Market Reaction - Following the earnings report, Oracle's shares experienced a negative reaction, dropping over 5% [3][8] - The significant miss in software business revenue raised concerns among investors [3] Future Outlook and Spending - Oracle plans to continue investing heavily, including purchasing GPUs from Nvidia [3][4] - There are concerns about the company's ability to generate sufficient free cash flow to cover expenses, with projections of potential negative free cash flow in upcoming quarters [5] - The remaining performance obligations (RPO) increased significantly year-over-year, reported at $523 billion, but this was noted as a poor comparison [2][6][7] Comparison with Adobe - Adobe reported a fiscal fourth quarter EPS of $5.50, beating expectations of $5.39 [10] - Adobe's revenue for the fourth quarter was reported at 6.19%, exceeding estimates of 6.11% [10] - Adobe's RPO for the fiscal fourth quarter was $22.52 billion, above the expected $22.28 billion [10] - Adobe's subscription revenue grew by 12% year-over-year, contributing to a positive report despite a tepid market reaction [12][13]