Oracle reported fiscal 2026 second-quarter revenue of $16.058 billion on December 10, 2025, below contemporaneous analyst estimates of about $16.19 billion to $16.21 billion. Shares fell roughly 10% to more than 11% in extended or subsequent trading, depending on the report and trading window. The quarter was mixed rather than a straightforward earnings failure: adjusted EPS was reported above expectations, but investors also weighed a softer outlook and higher planned spending.
Did Oracle miss revenue estimates?
Yes. For the quarter ended November 30, 2025, Oracle reported revenue of $16.058 billion, up 14% year over year. Contemporary reports compared that result with estimates ranging from $16.19 billion to $16.21 billion. The exact comparison depends on the provider: Investing.com, with Reuters-contributed reporting, cited $16.19 billion, while Forbes cited $16.21 billion.
That is a relatively small shortfall compared with Oracle’s total revenue, but it was a miss against both cited estimates. The stock reaction was described in reports as a decline of around 10% to more than 11%; some accounts referred to extended-hours trading and others to the following session, so the figures are not interchangeable as a single closing-price change.
Why did Oracle stock drop?
The revenue miss was one part of the story, but coverage also focused on the company’s forward outlook and spending plans. Reuters-contributed coverage on Investing.com reported that Oracle’s next-quarter adjusted EPS outlook of $1.64 to $1.68 per share was below an LSEG estimate of $1.72. It also reported Oracle forecast revenue growth of 16% to 18%, compared with 19.4% expected, and that planned spending was $15 billion higher than prior estimates.
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1Scan for outdated or missing drivers - takes under a minute2Repair Windows errors before they cause bigger problems3Fix the driver behind crashes, sound loss and screen glitchesThe spending question matters because investors were assessing whether major investment in AI infrastructure would generate enough profit and how Oracle would finance it. The Associated Press described those concerns alongside Oracle’s large backlog. These are reported investor concerns and context for the market reaction, not proof that any one factor caused the share decline. A share-price move reflects market trading and cannot, by itself, establish a single cause.
Did Oracle beat earnings but miss revenue?
That is how contemporaneous coverage characterized the results: adjusted earnings per share beat estimates while revenue came in below estimates. Oracle reported non-GAAP EPS of $2.26 and GAAP EPS of $2.10. The two measures are not interchangeable: non-GAAP EPS excludes items treated differently under Oracle’s adjusted reporting, while GAAP EPS follows generally accepted accounting principles.
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Oracle said both GAAP and non-GAAP earnings per share benefited from a $2.7 billion pretax gain from the sale of its interest in Ampere. In the company’s December 10, 2025 results release, Principal Financial Officer Doug Kehring said the gain positively impacted both measures. The gain is important context when interpreting reported EPS; it was not ordinary revenue from the quarter’s cloud or software sales.
What did Oracle report for fiscal 2026 Q2?
The company’s release reported the following results for the quarter ended November 30, 2025:
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| Measure | Reported result | Year-over-year or sequential change |
|---|---|---|
| Total revenue | $16.058 billion | Up 14% year over year |
| Total cloud revenue | $7.977 billion | Up 34% year over year |
| Software revenue | $5.877 billion | Down 3% year over year |
| GAAP EPS | $2.10 | Benefited from the Ampere sale gain |
| Non-GAAP EPS | $2.26 | Benefited from the Ampere sale gain |
| Remaining performance obligations (RPO) | $523 billion | Up 15% sequentially; increased by $68 billion in Q2 |
The revenue, earnings, cloud, software and RPO figures are from Oracle’s official results announcement. RPO represents contracted future revenue not yet recognized; it is a backlog measure, not revenue already earned in the quarter.
How did cloud growth compare with software?
Oracle’s total cloud revenue grew 34% to $7.977 billion, while software revenue declined 3% to $5.877 billion. A separate Reuters-contributed report put cloud infrastructure revenue at $4.08 billion, up 68%. That infrastructure figure is a component of Oracle’s broader cloud business, not another name for total cloud revenue. The different rates show why it is useful to distinguish infrastructure growth from the full cloud segment.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Does Oracle’s $523 billion backlog settle the spending question?
No. Oracle reported that RPO reached $523 billion after increasing $68 billion in Q2, a 15% sequential rise, and highlighted commitments from Meta, NVIDIA and other customers. That indicates substantial contracted future business, but it does not mean all of that amount will be recognized as revenue immediately or at a particular margin. Investors’ questions about conversion timing, profitability and financing can coexist with a growing backlog.
For personal-finance readers considering Oracle shares, the quarter’s figures are historical results and the reported stock decline is a past market reaction, not a forecast. These results alone do not establish whether the stock is suitable for a particular investor.
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