Oracle (ORCL) Q2 Earnings: Key Metrics Review

Oracle (ORCL) has announced its financial performance for the quarter ending in November 2024. The company reported revenue of $14.06 billion, which marks an increase of 8.6% compared to the same quarter last year. Additionally, the earnings per share (EPS) came in at $1.47, up from $1.34 a year earlier.

When comparing these results to expectations, Oracle's revenue fell short of the Zacks Consensus Estimate, which was $14.12 billion, indicating a surprise of -0.46%. Moreover, the EPS also did not meet analysts' projections, with a consensus estimate of $1.48, resulting in an EPS surprise of -0.68%.

While the overall revenue and earnings figures provide valuable insights, a deeper understanding of Oracle's performance can be gained by examining key metrics that are regularly analyzed by Wall Street.

These metrics are instrumental in influencing both revenue and earnings, and assessing them against previous year's data along with analyst predictions can help investors evaluate potential stock performance.

Geographic Revenue Breakdown

Here's a closer look at Oracle's revenue performance across different regions:

• Americas: The company earned $8.93 billion in this region, slightly above the $8.91 billion average estimate from two analysts, reflecting a 10.7% year-over-year increase.
• Asia-Pacific: Revenue stood at $1.75 billion, missing the expected $1.82 billion. This represents a year-over-year change of 2.4%.
• Europe, Middle East, and Africa: Here, Oracle reported $3.38 billion, below the average projection of $3.47 billion. This result translates to a year-over-year increase of 6.7%.

Product Revenue Insights

In terms of product-specific revenue, Oracle had the following outcomes:

• Hardware Revenue: Oracle generated $728 million, surpassing the consensus of $707.15 million, yet reflecting a year-over-year decline of 3.7%.
• Cloud License and On-Premise License Revenue: This category brought in $1.20 billion, slightly above the expected $1.17 billion, with a 1.4% increase year-over-year.
• Services Revenue: Reported at $1.33 billion, which is below the average estimate of $1.37 billion, marking a decrease of 2.8% compared to the prior year.
• Cloud Services and License Support Revenue: Achieved $10.81 billion, which isn't far from the projected $10.90 billion, showing a robust increase of 12.1% year-over-year.

Furthermore, specific revenue insights include:

• Cloud Services and License Support: This segment reported $10.81 billion, below the average estimate of $12.06 billion.
• License Support Revenue: Registered at $4.87 billion, which is under the expected $4.99 billion.
• Infrastructure Cloud Services and License Support: Revenue reached $6.02 billion, closely matching the expected $6.07 billion with a significant increase of 16.6% year-over-year.
• Applications Cloud Services and License Support: Reported $4.78 billion, lower than the anticipated $4.89 billion, yet reflecting a year-over-year growth of 6.9%.
• Cloud Services Revenue: This earned $5.94 billion, just below the average estimate of $5.97 billion.

Overall, Oracle's shares have seen a return of 1.3% over the past month, compared to a 2.9% rise in the S&P 500 composite. Currently, Oracle holds a Zacks Rank of 3 (Hold), suggesting it might perform alongside the broader market in the near future.

Earnings, Companies, Stocks