Oracle Corp (NYSE:ORCL) stock plunges 14.48% (As on December 11, 11:31:23 AM UTC-4, Source: Google Finance) after the company’s quarterly revenue missed street expectations, the EPS beat was aided by a one-time gain, and longer-than-expected revenue recognition timelines. Oracle’s cloud infrastructure segment grew by 68% from last year to $4.1 billion, a marginal miss on expectations. Remaining Performance Obligations (RPOs) or those future revenues from signed customer contracts that has not been recognized in the P&L yet, jumped more than five-fold from last year to $523 billion, aided by new commitments from customers such as Meta and Nvidia. There is no definite timeline on when these RPOs get recognized as revenue in the financial statements. Sales for the software business declined 3% to $5.9 billion, lower than the $6.06 billion estimate from analysts. Non-GAAP operating income was $6.7 billion, up 10% year-over-year in USD and up 8% in constant currency. Non-GAAP net income was $6.6 billion, up 57% in USD and up 54% in constant currency. Short-term deferred revenues were $9.9 billion. Over the last twelve months, operating cash flow was $22.3 billion, up 10% in USD

Meanwhile, the company has recently raised $18 billion through one of the largest bond sales in tech history and is also a bigger issuer of investment-grade debt among non-financial firms

ORCL in the second quarter of FY26 has reported the adjusted earnings per share of $2.26, beating the analysts’ estimates for the adjusted earnings per share of $1.64. The company had reported the adjusted revenue growth of 14 percent to $16.06 billion in the second quarter of FY26, missing the analysts’ estimates for revenue of $16.21 billion, according to estimate from analysts tracked by Bloomberg.

Additionally, the company has declared a quarterly cash dividend of $0.50 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on January 9, 2026, with a payment date of January 23, 2026

For the third quarter, Oracle expects revenue growth to be between 19% to 21%, largely in-line with the 19% projection by analysts.

Oracle has raised concerns on Wall Street due to its debt-led expansion for AI infrastructure, and its over-dependence on OpenAI’s $300 billion contract for its infrastructure services, the funding timelines for which remains unclear. The company also increased its capex guidance for the full year to $50 billion from $35 billion earlier.