Larry Ellison, Oracle’s co-founder and chief technology officer, appears at the Formula One British Grand Prix in Towcester, U.K., on July 6, 2025.
Jay Hirano | Sopa Images | Lightrocket | Getty Images
Oracle is scheduled to report fiscal second-quarter results after market close on Wednesday.
Here’s what analysts are expecting, according to LSEG:
Earnings per share: $1.64 adjustedRevenue: $16.21 billion
Wall Street expects revenue to increase 15% in the quarter that ended Nov. 30, from $14.1 billion a year earlier. Analysts polled by StreetAccount are looking for $7.92 billion in cloud revenue and $6.06 billion from software.
The report lands at a critical moment for Oracle, which has tried to position itself at the center of the artificial intelligence boom by committing to massive build-outs. While the move has been a boon for Oracle’s revenue and its backlog, investors have grown concerned about the amount of debt the company is raising and the risks it faces should the AI market slow.
The stock plummeted 23% in November, its worst monthly performance since 2001 and, as of Tuesday’s close, is 33% below its record reached in September. Still, the shares are up 33% for the year, outperforming the Nasdaq, which has gained 22% over that stretch.
Over the past decade, Oracle has diversified its business beyond databases and enterprise software and into cloud infrastructure, where it competes with Amazon, Microsoft and Google. Those companies are all vying for big AI contracts and are investing heavily in data centers and hardware necessary to meet expected demand.
OpenAI, which sparked the generative AI rush with the launch of ChatGPT three years ago, has committed to spending more than $300 billion on Oracle’s infrastructure services over five years.
“Oracle’s job is not to imagine gigawatt-scale data centers. Oracle’s job is to build them,” Larry Ellison, the company’s co-founder and chairman, told investors in September.
Oracle raised $18 billion during the period, one of the biggest issuances on record for a tech company. Skeptical investors have been buying five-year credit default swaps, driving them to multiyear highs. Credit default swaps are like insurance for investors, with buyers paying for protection in case the borrower can’t repay its debt.
“Customer concentration is a major issue here, but I think the bigger thing is, How are they going to pay for this?” said RBC analyst Rishi Jaluria, who has the equivalent of a hold rating on Oracle’s stock.
During the quarter, Oracle named executives Clay Magouyrk and Mike Sicilia as the company’s new CEOs, succeeding Safra Catz. Oracle also introduced AI agents for automating various facets of finance, human resources and sales.
Executives will discuss the results and issue guidance on a conference call starting at 5 p.m. ET.
WATCH: Oracle’s debt concerns loom large ahead of quarterly earnings
