(Reuters) – Oracle missed estimates for quarterly revenue on Monday, as an uncertain economy and competition in the cloud computing market weighed on demand for its cloud offerings, sending its shares down more than 7% in extended trading.
Sticky inflation and high borrowing costs have forced firms to cut back on expenditure, hurting firms like Oracle that depend on enterprise spending.
In October, Google-parent Alphabet also reported slowest growth in its cloud division in at least 11 quarters, raising concerns about the demand environment.
While Oracle has been working to bolster its AI infrastructure as firms look to adopt generative AI, frontrunners Amazon and Microsoft continue to dominate the market.
Oracle reported second-quarter revenue of $12.94 billion that came in below analysts’ average estimate of $13.05 billion, according to LSEG data.
The cloud-based software maker reported an adjusted net income of $3.76 billion for the second quarter, marginally beating Street estimates of $3.74 billion.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shinjini Ganguli)
