Oracle set to report quarterly results after the bell

Oracle is scheduled to study fiscal second-quarter results aft marketplace adjacent connected Wednesday.

Here's what analysts are expecting, according to LSEG:

• Earnings per share: $1.64 adjusted
• Revenue: $16.21 billion

Wall Street expects gross to summation 15% successful the 4th that ended Nov. 30, from $14.1 cardinal a twelvemonth earlier. Analysts polled by StreetAccount are looking for $7.92 cardinal successful unreality gross and $6.06 cardinal from software.

The study lands astatine a captious infinitesimal for Oracle, which has tried to presumption itself astatine the halfway of the artificial quality roar by committing to monolithic build-outs. While the determination has been a boon for Oracle's gross and its backlog, investors person grown concerned astir the magnitude of indebtedness the institution is raising and the risks it faces should the AI marketplace slow.

The banal plummeted 23% successful November, its worst monthly show since 2001 and, arsenic of Tuesday's close, is 33% beneath its grounds reached successful September. Still, the shares are up 33% for the year, outperforming the Nasdaq, which has gained 22% implicit that stretch.

Over the past decade, Oracle has diversified its concern beyond databases and endeavor bundle and into unreality infrastructure, wherever it competes with Amazon, Microsoft and Google. Those companies are each vying for large AI contracts and are investing heavily successful information centers and hardware indispensable to conscionable expected demand.

OpenAI, which sparked the generative AI unreserved with the motorboat of ChatGPT 3 years ago, has committed to spending much than $300 cardinal connected Oracle's infrastructure services implicit 5 years.

"Oracle's job is not to imagine gigawatt-scale data centers. Oracle's job is to build them," Larry Ellison, the company's co-founder and chairman, told investors successful September.

Oracle raised $18 billion during the period, 1 of the biggest issuances connected grounds for a tech company. Skeptical investors person been buying five-year recognition default swaps, driving them to multiyear highs. Credit default swaps are similar security for investors, with buyers paying for extortion successful lawsuit the borrower can't repay its debt.

"Customer attraction is simply a large contented here, but I deliberation the bigger happening is, How are they going to wage for this?" said RBC expert Rishi Jaluria, who has the equivalent of a clasp standing connected Oracle's stock.

During the quarter, Oracle named executives Clay Magouyrk and Mike Sicilia arsenic the company's caller CEOs, succeeding Safra Catz. Oracle besides introduced AI agents for automating assorted facets of finance, human resources and sales.

Executives volition sermon the results and contented guidance connected a league telephone starting astatine 5 p.m. ET.

WATCH: Oracle's indebtedness concerns loom ample up of quarterly earnings