Oracle Q3 Earnings Miss, Cloud Segment Grows

Oracle's fiscal third-quarter results fell short of Wall Street expectations, with earnings per share of $1.47 missing forecasts of $1.49, and revenue of $14.13 billion below the anticipated $14.39 billion. Despite this, Oracle's cloud infrastructure segment grew 49% year-over-year, driven by demand for AI projects and partnerships with companies like Nvidia and Meta. The company plans to double its data center capacity this year to meet the surging demand. Oracle's remaining performance obligations surged 62% to $130 billion, indicating strong future bookings. The company also announced a 25% increase in its quarterly dividend, to 50 cents per share. While Oracle shares rose in after-hours trading, the stock has faced challenges, having lost about 6.9% year-to-date against the S&P 500's decline of 1.9%.