Oracle (ORCL) shares sinks 9% after Q2 guidance update
Oracle (NYSE: ORCL) shares added to losses after-hours after the company provided Q2 guidance on its earnings call.
From the CFO:
"And as you will hear at our Financial Analyst Meeting next week, we remain firmly committed to our fiscal '26 financial goals. Let me now turn to my guidance for Q2, which I'll review on a non-GAAP basis. If currency exchange rates remain the same as they are now, currency should have a 2% positive effect on total revenue and a $0.03 positive effect on EPS in Q2. However, the actual currency impact may be different. Here we go. Total revenues, including Cerner, are expected to grow from 3% to 5% in constant currency and are expected to grow 5% to 7% in USD at today's rates. Total revenue, excluding Cerner, are expected to grow from 6% to 8% in constant currency and expected to grow 8% to 10% in USD. Total cloud revenue, excluding Cerner, again, I give you these numbers so you can see the mainline business, is expected to grow from 27% to 29% in constant currency and is expected to grow 29% to 31% in USD. Non-GAAP EPS is expected to grow between 5% to 9% and be between $1.27 and $1.31 in constant currency. Non-GAAP EPS is expected to grow between 7% to 11% and be between USD 1.30 and USD 1.34. My EPS guidance for Q2 assumes a tax rate of 19%. However, onetime tax events could cause actual tax rates to vary."
Shares are now down 9% after-hours.