Oracle Stock Drops 10% on Weak Outlook
<p>Oracle's fiscal first-quarter results, released on Monday, exceeded analysts' expectations thanks to growing demand for cloud services driven by businesses' efforts to develop generative artificial intelligence applications.</p>
<p>Despite the positive results, <a href='https://financialmodelingprep.com/financial-summary/ORCL'>Oracle Corporation (NYSE:ORCL)</a> shares dropped more than 10% pre-market today as the company provided a less optimistic outlook for the second quarter during the earnings call.</p>
<p>Oracle reported adjusted earnings per share (EPS) of $1.19 on revenue of $12.45 billion, surpassing the Street expectations of EPS of $1.15 on revenue of $12.44 billion.</p>
<p>During the earnings call, Oracle projected that total revenue would grow by 5-7% at current currency rates and 3-5% in constant currency. However, the company anticipated cloud revenue growth of 28% in constant currency, slightly below the 29% reported for the first quarter. This cloud revenue outlook is likely the primary reason for the stock's post-earnings decline.</p>

NYSE:ORCL