Oracle Shares Plunge After Earnings Report

Shares of Oracle Corp. experienced a significant drop on Tuesday, decreasing by 8%. This marked the company's largest decline in over a year, largely attributed to disappointing quarterly earnings reported the previous day.

Before this latest downturn, Oracle's stock had only seen its worst single-day fall of 5.4% in May. Despite this, Oracle shares have still risen approximately 68% in 2024, setting the stage for what could be the best annual performance since the dot-com boom in 1999.

Earnings Report Details

After market hours on Monday, Oracle disclosed its adjusted earnings per share for the fiscal second quarter at $1.47. This figure fell short of analysts' average estimate by one cent, according to LSEG reports. In addition, the company's revenue grew by 9% year-over-year, reaching $14.06 billion but was just under the expected $14.1 billion.

Oracle's net income rose by 26% to $3.15 billion, translating to $1.10 per share, up from $2.5 billion or 89 cents per share a year earlier. A highlight of the report was the 12% increase in revenue from Oracle's cloud services, totaling $10.81 billion and making up 77% of the company’s overall revenue.

Future Growth and Analyst Insights

Analysts from KeyBank Capital Markets expressed in a note that this might be a slight setback for a company that has raised expectations significantly. They maintained a