By Daniel Foelber, The Motley Fool
Publication Date: 2025-12-15 08:55:00
Oracle tumbles after earnings release as investors question its aggressive strategy.
oracle (ORCL 4.47%) was slammed after announcing his results on December 10.
The tech giant reported an impressive 54% increase Non-GAAP Earnings per share and record remaining performance obligations (RPO) of $523 billion.
The results were excellent, but still not enough to address investor concerns about Oracle’s aggressive spending artificial intelligence (AI) infrastructure.
Here’s why Oracle’s spending is so extreme and whether investors should buy it Growth stock at least in 2026.
Image source: Getty Images.
Oracle’s expenses overshadow its excellent results
Last quarter, Oracle recorded $7.98 billion in cloud revenue (applications and infrastructure) and $5.88 billion in software revenue (legacy database services). With $3.99 billion in cloud and software operating costs, it is operating margin The rate is sky-high at 71.2%. And 14% of Oracle revenue came from hardware…
