Oracle Plunges 12% Despite Earnings Beat as $50 Billion Spending Plan Stuns Investors

1 hour ago 4

William Temple

Thu, December 11, 2025 astatine 8:56 AM CST 4 min read

24/7 Wall St.

Oracle’s $2.26 EPS bushed relied connected a $2.7B one-time gain. Core net missed astatine $1.33 versus $1.64 expected.
CapEx guidance jumped $15B to $50B for fiscal 2026. Free currency travel burned $10B for the 3rd consecutive quarter.
Shares dropped 12% arsenic anemic Q3 guidance and indebtedness concerns overshadowed 68% unreality infrastructure growth.
If you’re reasoning astir retiring oregon cognize idiosyncratic who is, determination are 3 speedy questions causing galore Americans to recognize they tin discontinue earlier than expected. instrumentality 5 minutes to learn much here

Yesterday we highlighted Oracle's monolithic $455 cardinal unreality backlog and the question of whether infrastructure spending would yet person to sustainable borderline expansion. This morning, investors are answering decisively. Shares plunged 12% to astir $197 successful Thursday trading aft the institution reported a 38.6% net bushed that came with a $2.7 cardinal one-time gain, anemic guidance, and a stunning $15 cardinal summation to superior expenditure forecasts.

Oracle posted adjusted EPS of $2.26 versus the $1.64 estimate, but the header fig obscures the reality. The institution booked a $2.7 cardinal pretax summation from selling its Ampere spot portion to SoftBank. Stripping that out, halfway net would person landed adjacent $1.33, good beneath expectations. Revenue of $16.06 cardinal missed the $16.21 cardinal estimation contempt 14% year-over-year growth. Software licence gross dropped 21%, and full bundle gross fell 3% to $5.88 billion, missing the $6.06 cardinal consensus.

Cloud infrastructure gross grew 68% to $4.1 billion, accelerating from 55% past quarter. Remaining show obligations deed $523 billion, up from $455 cardinal successful September but inactive beneath the $526 cardinal Wall Street expected. The existent daze came erstwhile Principal Financial Officer Doug Kehring announced that fiscal 2026 superior expenditures would scope $50 billion, $15 cardinal higher than the September guidance of $35 billion. Free currency travel was antagonistic $10 cardinal successful the quarter, marking 3 consecutive quarters of currency burn.

Oracle's banal plunged 12% aft its Q2 2026 earnings, arsenic a gross miss and anemic guidance overshadowed an EPS bushed mostly driven by a one-time gain.

Co-CEO Clay Magouyrk tried to calm concerns astir financing the information halfway buildout, noting Oracle is exploring models wherever customers bring their ain chips oregon vendors rent capableness alternatively than merchantability it outright. Chairman Larry Ellison emphasized the company's displacement to "chip neutrality," saying Oracle volition deploy "whatever chips our customers privation to buy" alternatively than manufacturing its own. The message: flexibility volition easiness superior intensity.