ORCL: Oracle Stock Tumbles Over 12% on Fiscal Q2 Revenue Miss, Cloud Sales Hit

Enterprise software company logged a 29% quarterly sales drop in its cloud unit. Cloud infrastructure was especially hurt by a 66% decline.

• Oracle stock ORCL fell 12% on Tuesday after the company released its fiscal second-quarter earnings results. The update took traders by surprise after both revenue and net income undershot, disappointing markets for the second quarter in a row. Despite the big drop, shares of the enterprise software firm are up 20% on the year.
• For the November quarter, Oracle posted revenue of $12.94bn, or 5% annual growth, but below the $13.05bn consensus call. Net income for the firm arrived at $2.5bn, or 89 cents a share. The figures slipped under expectations pinned at $2.72bn, or 92 cents a share.
• Cloud revenue rose 25% from a year ago to $4.8bn, but declined 29% from the August quarter. What’s more, sales in the cloud infrastructure unit declined 66% from the previous three months. Oracle, which sits in the upper echelon of the big software firms, expects to lift revenue by 6% to 8% in the current quarter.