Oracle Shares Fall 7% As Investors Take Profits After Long-Term Guidance

(RTTNews) - Oracle (ORCL) shares dropped 7.1% in morning trading as investors booked profits following the company's long-term outlook, signaling a cooling of earlier enthusiasm.

Management confirmed that remaining performance obligations surpassed $500 billion and addressed margin concerns, revealing a $60 billion AI infrastructure deal expected to yield 30-40 percent margins. However, the rally faded after EVP Douglas A. Kehring projected 16 percent revenue growth for FY26, Oracle's fastest in 15 years but slower than investors anticipated.

CEO Clayton Magouyrk attributed the delay to execution challenges, not demand, citing supply constraints in AI infrastructure.

The pullback reflected profit-taking as investors acknowledged that scaling revenue from massive contracts will take time due to data center deployment limits.

Oracle's stock, known for volatility, has seen 22 moves above 5 percent in the past year. Four days earlier, shares rose 5.4 percent on new partnerships with Zoom and Duality, plus Nvidia integration for its AI factories. Broader market optimism also followed easing U.S.-China trade tensions, lifting major indices.

Despite today's decline, Oracle remains up 75.8 percent year-to-date, trading at $291.92, about 11 percent below its 52-week high of $328.33 in September 2025. A $1,000 investment five years ago would now be worth $4,896.

Friday, ORCL closed at $291.45, down 6.88%, and is currently trading after hours at $291.35, a further 0.03% decline on the NYSE.