Oracle co-founder and chief technology officer Larry Ellison appears at the F1 British Grand Prix held in Towcester, England on July 6, 2025.
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oracle is scheduled to announce its second quarter results after the market closes on Wednesday.
According to LSEG, analysts expect the following:
Earnings per share: Adjusted $1.64 Revenue: $16.21 billion
Wall Street expects sales for the quarter ending Nov. 30 to rise 15% from $14.1 billion a year earlier. Analysts surveyed by StreetAccount expect cloud revenue to be $7.92 billion and software revenue to be $6.06 billion.
The report comes at a critical juncture for Oracle, which has sought to position itself at the center of the artificial intelligence boom with a massive ramp-up. While the move has been a boon to Oracle’s earnings and backlog, investors have grown concerned about the amount of debt the company is raising and the risks it faces if the AI market slows.
The company’s stock price plunged 23% in November, its worst monthly performance since 2001, and as of Tuesday’s close was 33% below the record set in September. Still, the stock is up 33% since the beginning of the year, outpacing the Nasdaq, which is up 22% over the period.
Over the past decade, Oracle has diversified beyond databases and enterprise software into competing cloud infrastructures. Amazon, microsoft and google. All of these companies are vying for large AI contracts and are investing heavily in data centers and hardware needed to meet expected demand.
OpenAI, which sparked a generative AI rush with the launch of ChatGPT three years ago, has committed to spending more than $300 billion over five years on Oracle’s infrastructure services.
“Oracle’s job is not to imagine gigawatt data centers. Oracle’s job is to build them,” company co-founder and chairman Larry Ellison told investors in September.
Oracle raised $18 billion during the same period, one of the largest issuances for a technology company in history. Skeptical investors are buying five-year credit default swaps, sending them to multi-year highs. Credit default swaps are like insurance for investors, with the buyer paying compensation in case the borrower is unable to repay the debt.
“Customer concentration is a big issue here, but I think the more important question is how are customers going to pay for this,” said RBC analyst Rishi Jarulia, who has a hold rating on Oracle stock.
During the quarter, Oracle named executives Clay Magwiruk and Mike Sicilia as its new CEO, replacing Safra Catz. Oracle also introduced AI agents that automate various aspects of finance, human resources, and sales.
Executives plan to discuss the results and issue guidance during a conference call beginning at 5 p.m. ET.
WATCH: Oracle debt concerns loom large ahead of quarterly results
