For analysts, Oracle’s Q2 earnings are all about these 2 themes

Yahoo Finance Video

December 10, 2025

In this video:

ORCL

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Oracle (ORCL) is reporting its high-stakes second quarter earnings results on Wednesday after the closing bell.

Yahoo Finance Tech and Markets Reporter Laura Bratton joins Market Domination Overtime host Josh Lipton to explain what analysts are expecting from the print.

To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime.

Video Transcript

00:00 Speaker A

Oracle earnings. The cloud computing giant expect to release its second fiscal quarter results after the close on Wednesday. And Yahoo Finance Tech and Markets reporter Laura Bratton joining us now. Laura, what are analysts expecting to hear from this call?

00:15 Laura Bratton

Yeah, so analysts really expect that Oracle’s AI cloud business is going to continue driving the business forward. So, um, Oracle Cloud infrastructure, uh, is expected to see revenue climb 68% to um, just over 4 billion. Whereas overall revenue growth, um, is expected to be 15% um, and come in around 16.2 billion. Um, so really again, just looking to see what’s going to happen in its AI cloud business and analysts are also going to be watching really closely for commentary on capital expenditures because there’s been a lot of focus on how much big tech companies are spending in the, um, AI data center infrastructure space.

01:00 Speaker A

Yeah, I mean that that’s really I mean you this name got whacked, right? And I investors want all this more line of sight into CapEx and then free cash flow implications of this massive AI data center buildout. I mean I get when you were reading through the notes, did analyst say, listen, they they think they’ll have that line of sight like Larry Ellison and Safra Catz, they’re going to provide a lot more color tomorrow on the call or no, like we’ll have to mark our calendars some future date.

01:28 Laura Bratton

Yeah, I think it’s something that was missing in their analyst day in October and it’s something that um, analysts are definitely hoping will be revealed and they they think that it is coming because, um, you know, Oracle is one of the names or one of the companies that’s taken on more debt, um, to fund their AI data center ambitions. Um, and that’s something that’s had investors more skeptical of the AI trade and you know, um, where we are in terms of the life cycle of the bubble. Um, and Oracle has taken on a considerable amount of debt and issued around, you know, nearly 26 billion in corporate bonds this year and it’s on the lower end of the investment grade spectrum. So it’s bonds have a triple B rating, whereas Alphabet, for example, has like a double A and Amazon and um, meta have a an AA minus uh rating on their bond. So, you know, really just looking for more detail around how Oracle is going to be funding its AI ambitions, what’s the return on this going to be, how is it going to compress cash flow in the near term.

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