Shares of Oracle Financial Services Software (OFSS) declined nearly 3% in Thursday’s session, tracking the sharp fall in its parent company Oracle Corp, which plunged 11% in extended US trading after posting weaker-than-expected quarterly revenue. As of Thursday, Dec 11, OFSS was trading around ₹7,711, down ₹159 from the previous close.
The sentiment shock came from Oracle’s fiscal second-quarter results, where revenue stood at $16.06 billion, missing the Street estimate of $16.21 billion despite strong AI-led demand for its cloud infrastructure. Software revenue also fell 3% to $5.88 billion, below expectations — a key factor behind the selloff.
Investors further reacted to Oracle’s sharply rising capital expenditure plans. The company now expects $50 billion in full-year capex, higher than its earlier $35 billion estimate, raising concerns about debt levels and cash flow sustainability. Free cash flow for the quarter came in at negative $10 billion, versus expectations of negative $5.2 billion.
Despite strong cloud traction boosted by commitments from Meta, Nvidia and OpenAI, the revenue miss, softer guidance and capex surge weighed heavily on the stock. Oracle shares had already fallen 23% in November, its worst month since 2001, intensifying the reaction.
The 11% slump in the parent stock on Wednesday night led to immediate negative sentiment for OFSS on Thursday, pulling shares down nearly 3% in early trade.
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