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The AI cloud provider released a spectacular earnings report in September that signaled huge new demand for its AI cloud business.
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But not long after, Oracle shares retreated as investors became increasingly concerned about the debt needed to meet that demand.
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Another potential moment of clarity about Oracle is quickly approaching.
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10 stocks we like better than Oracle ›
Oracle (NYSE: ORCL) has had a big year, solidifying its position as one of the leading artificial intelligence (AI) players to watch. Despite the extreme volatility this year, the stock is still trading up about 30%, outperforming the broader market.
Oracle made a big splash in September with its earnings report for the first quarter of fiscal 2026. The company reported staggering demand in its AI cloud business. Oracle reported $455 billion in remaining performance obligations (RPOs), up 359% year over year, driven largely by demand for its cloud AI services. The share price rose almost 40% following the report.
However, Oracle has since given back most of those profits after the company reported that it would need to take on significant debt to fund the expansion of its AI infrastructure. Media outlets also reported that Oracle is operating on extremely thin margins in its AI cloud business.
Now, another big day for Oracle is fast approaching. Investors should mark their calendars for December 10.
Oracle will report earnings for its second quarter of fiscal 2026 after the market closes on Wednesday, December 10. Investors will undoubtedly look for assurances from management that the company can manage the development of its AI infrastructure in a financially prudent manner, as well as other clues about broader demand for AI.
Citi Analyst Tyler Radke said in a recent research note that he believes “concerns about the health of Oracle’s debt” are “overblown.” Radke also expects Oracle to report another strong RPO figure of $600 billion, which could rejuvenate sentiment.
It’s always difficult to predict what a company will report in its earnings, and even more difficult to predict how the market will react. That’s why I wouldn’t recommend trying to trade around this earnings event, especially considering Oracle stock has been so volatile in recent months.
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