oracle Shares slipped greater than 7% on Tuesday afternoon, a day after the database software company reported fiscal second-quarter results that fell wanting analysts' estimates and issued weaker-than-expected guidance.

Here's how Oracle performed in comparison with the LSEG consensus:

• Earnings per share: $1.47 adjusted vs. $1.48 expected
• Revenue: $14.06 billion versus expected $14.1 billion

Oracle's second-quarter revenue rose 9% year-over-year.

Net income rose 26% to $3.15 billion, or $1.10 per share, compared with $2.5 billion, or 89 cents per share, a 12 months earlier. Revenue at Oracle's cloud services business rose 12% 12 months over 12 months to $10.81 billion and accounted for 77% of total revenue.

Oracle's biggest growth driver has been the cloud infrastructure on which the corporate competes Amazon, Microsoft And Google as corporations move workloads from their very own data centers.

Business is booming resulting from increasing demand for computing power that may handle artificial intelligence projects. Oracle said revenue from its cloud infrastructure division rose 52% from a 12 months ago to $2.4 billion.

Oracle said it had just signed an agreement with MetaThis allows the social media company to make use of its infrastructure to assist with various projects related to the Llama family of huge language models.

“Oracle Cloud Infrastructure trains several of the world’s most important generative AI models because we are faster and more cost-effective than other clouds,” Oracle founder Larry Ellison said in a press release.

For the present quarter, Oracle expects revenue growth of seven% to 9%. At the center of this range, sales can be around $14.3 billion. Analysts expected revenue of $14.65 billion, in line with LSEG. The company said it expected adjusted earnings of $1.50 to $1.54 per share. Analysts had expected earnings per share of $1.57.

In September, Oracle raised its fiscal 2026 revenue forecast to $66 billion, which was about $1.5 billion greater than analysts had predicted. This month also Oracle announced that its cloud unit would begin accepting customer orders for so-called computing clusters of greater than 131,000 Nvidia “Blackwell” graphics processing units used for AI model training and related tasks.

As of Monday's close, the stock is up greater than 80% this 12 months and is heading for its best annual performance since 1999.

oracle Shares rose 9% in prolonged trading on Monday after the database software provider reported fiscal first-quarter results that beat Wall Street estimates.

Here’s how the corporate performed in comparison with the LSEG consensus:

• Earnings per share: $1.39 adjusted vs. $1.32 expected
• Revenue: $13.31 billion in comparison with expected $13.23 billion

Oracle's revenue rose 8% from $12.45 billion a 12 months earlier, in keeping with a opinionNet income rose to $2.93 billion, or $1.03 per share, from $2.42 billion, or 86 cents per share, within the year-ago quarter.

With an after-hours price of about $153, Oracle is on target to hit a record on Tuesday. The stock's previous highest close was $145.03 in July. Before the report, Oracle had risen about 34 percent thus far this 12 months, compared with the S&P 500's 15 percent gain.

For the present quarter, Oracle expects revenue growth of 8 to 10%, said CEO Safra Catz within the conference call. According to LSEG, analysts had expected growth of just below 9%. The company expects adjusted earnings per share of $1.45 to $1.49 for the second quarter. Analysts had expected earnings of $1.47 per share.

The company said its cloud services and license support business generated revenue of $10.52 billion, up 10 percent from the previous 12 months and above the Street Account consensus of $10.47 billion.

Oracle's cloud and on-premises licensing segment reported revenue of $870 million, up 7% and exceeding the $757.6 billion forecast by StreetAccount.

Cloud infrastructure revenue was $2.2 billion, up 45 percent, an acceleration from the previous quarter, when revenue grew 42 percent.

“I would say that demand still exceeds supply. But I can live with that,” Catz said within the phone call.

Oracle is currently designing an information center that can devour greater than a gigawatt of power and can feature three modular nuclear reactors, Larry Ellison, Oracle co-founder, chairman and chief technology officer, said on the conference call.

Over time, Ellison says, Oracle could operate 2,000 data centers as an alternative of 162 today. But not all of them require enormous amounts of electricity.

“The smallest ones are about 150 kilowatts,” Ellison said. “And we'll go down to 50 kilowatts.”

During the quarter, Oracle announced the opening of a second cloud region in Saudi Arabia and said its database software can be available through Google's public cloud.

In a separate statement on Monday, Oracle said said It would enter right into a partnership with the market leader in cloud infrastructure Amazon Web Services to enable its database services on dedicated hardware.