Core Viewpoint - Oracle Corporation is facing scrutiny from analysts following its Q2 earnings report, which showed lower-than-expected quarterly revenue despite strong demand for its AI infrastructure [1]. Financial Performance - Oracle reported earnings per share (EPS) of $2.26, surpassing expectations of $1.64, while revenue was $16.06 billion, slightly below the anticipated $16.21 billion [2]. - For the fiscal third quarter, Oracle projected adjusted EPS between $1.70 and $1.74, with revenue growth expected to be between 19% and 21% [3]. Analyst Insights - Stifel analyst Brad Reback lowered the price target for Oracle's stock to $275.00 from $350.00 but maintained a "Buy" rating, citing a "lackluster print" in the earnings report [1][3]. - The report indicated modest improvement in remaining performance obligations (RPO) growth of 15% quarter-over-quarter, overshadowed by higher-than-expected capital expenditure plans [3]. Capital Expenditure Concerns - Oracle increased its fiscal year 2026 capital expenditure guidance by $15 billion to a total of $50 billion, raising concerns about funding for its data center expansion [4]. - Management emphasized a commitment to maintaining an investment-grade credit rating and mentioned various funding options available [4]. Infrastructure Revenue - The Infrastructure as a Service (IaaS) revenue was estimated at $4.1 billion, meeting but not exceeding expectations, with EPS, excluding the Ampere benefit, appearing to be 10-15 cents below guidance [5]. Future Growth Potential - Despite near-term concerns, analysts believe that current capital investments will likely support accelerating growth in Oracle Cloud Infrastructure (OCI) in the coming quarters, driven by an expanding and diverse IaaS customer base [6].

Core Insights - India's information technology (IT) spending is expected to reach $176.3 billion by 2026, reflecting a growth of 10.6% from 2025, surpassing the global growth rate of 9.8% [1][3] IT Spending Growth - For 2025, India's IT spending is projected to grow by 11.2%, reaching $160 billion [3] - The data centre segment is anticipated to have the highest annual growth rate, increasing by 20.5% in 2026, although this is a moderation from 29.2% in 2025 [4][5] Drivers of Growth - The growth is driven by increased investments in data centres and software, as enterprises accelerate their adoption of Cloud and digital technologies [5] - Rising demand for artificial intelligence (AI) infrastructure is expected to stimulate new investments in data centres [6] - Data localisation norms are also contributing to the growth, with major players in the data centre segment expanding their operations [7] Key Players and Market Dynamics - The entry of significant players like Reliance and the Adani group is propelling India's data centre growth [8] - India is recognized as having one of the largest consumer bases for AI services globally, attracting international investments in local infrastructure [8] Software and IT Services Growth - Software spending in India is projected to increase by 17.6% in 2026, reaching $24.7 billion, driven by investments in AI-enabled software solutions [8][9] - IT services spending is forecasted to grow by 11.1% in 2026, with double-digit growth expected in the coming years, averaging between 12% and 14% [11] - The growth momentum is supported by strong enterprise investments in infrastructure as a service (IaaS), consulting, and application modernization [12]