Oracle Shares Slide 13% as Sales and Profit Outlook Miss Expectations

Core Viewpoint - Oracle's stock fell over 13% intra-day following a disappointing sales and earnings forecast, alongside an announcement of an additional $15 billion in spending, raising concerns about the short-term returns on AI investments [1] Financial Performance - Adjusted profit for the current quarter is projected between $1.64 to $1.68 per share, below analyst expectations of $1.72 [2] - Revenue growth is forecasted at 16% to 18%, which is lower than the anticipated 19.4% [2] - For the fiscal second quarter, Oracle reported adjusted earnings of $2.26 per share on revenue of $16.06 billion, missing forecasts of $1.64 and $16.19 billion respectively [2] Revenue Breakdown - Cloud infrastructure revenue increased by 68% to $4.08 billion [3] - Software revenue decreased by 3% to $5.9 billion, primarily due to a significant 21% drop in new license sales [3] - Remaining performance obligations surged by 438% to $523 billion, indicating a substantial increase in future contracted revenue [3]