Oracle Stock Crash 2025: Q2 Earnings Miss Sparks 12% Plunge – What’s Next?

Oracle Stock Plunge: What Happened After Q2 Earnings Miss?

Oracle Corporation (ORCL) stock dropped over 12% in after-hours trading following its fiscal Q2 2026 earnings release on December 11, 2025, wiping out billions in market value amid weak revenue and surging AI costs. Current price sits at around $194.12 USD, down $28.89 from the day’s close, with trading volume spiking to 61 million shares.

Oracle Stock Earnings Highlights

Oracle reported Q2 revenue of $16.06 billion, missing Wall Street estimates of $16.21 billion, while AI infrastructure spending exceeded forecasts. Cloud infrastructure revenue grew 68% to $4.1 billion, driven by demand for Oracle Cloud Infrastructure (OCI), but total cloud sales disappointed investors. Earnings per share came in at $1.41 adjusted, beating expectations slightly, yet the stock’s sharp decline reflects broader AI spending fears.

Key Performance Metrics

Metric	Value	Notes
Market Cap	$548.20 billion	Down from recent highs
50-Day MA	$250.98	Stock well below average
200-Day MA	$212.67	Bearish long-term signal
P/E Ratio	36.42	Elevated valuation
Day’s Range	$186.23 – $195.48	Volatile session
RSI (Technical)	Oversold territory	Potential rebound signal ​

High volume indicates strong selling pressure, with the stock hitting its lowest since January.

Oracle Stock Why the Sell-Off?

Rising AI-related costs jumped past estimates, raising concerns over delayed payoffs from massive data center investments. Despite OCI growth, overall revenue shortfall revived fears of prolonged AI spending without immediate profits, dragging Nasdaq lower. Analysts note Oracle’s pivot to AI cloud remains promising long-term, but near-term execution risks persist.

Oracle Stock Analyst Outlook and Trading Tips

Short-term price targets average $210.70, with 12-month forecasts at $191.35, suggesting possible recovery if AI demand sustains. Technicals show oversold conditions (low RSI), hinting at a bounce, but watch support at $186. Investors should monitor upcoming guidance on AI contracts; diversify with tech ETFs if holding ORCL amid volatility. Long-term bulls eye OCI’s 68% growth trajectory.