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Margin Shortfall Sends Oracle Shares Lower in Early Trade
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Weaker-than-expected cloud margins pushed Oracle stock down, prompting analysts to trim earnings forecasts though management reaffirmed durable AI-driven demand.
Oracle declined 2.5% after its AI-cloud segment reported thinner profit margins than analysts expected. Forecasts for fiscal 2025 earnings were reduced to $7.91 per share from $8.24 as infrastructure costs rose faster than revenue. The disappointment weighed on broader enterprise-software peers. Executives reiterated steady long-term AI demand and cloud migration trends, while cost-reduction initiatives are being accelerated. Analysts anticipate that improved utilization and platform efficiency will help margins recover in the next two quarters despite current investor caution.