Oracle earnings on deck: 3 things this analyst is watching

Yahoo Finance Video 及 Julie Hyman

December 9, 2025

In this video:

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Oracle (ORCL) reports fiscal second quarter results on Wednesday after the closing bell.

TECHnalysis Research president, Bob O’Donnell, sits down with Julie Hyman to discuss Oracle’s place in the artificial intelligence (AI) trade and what he’s watching for in the earnings print.

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

Video Transcript

00:00 Speaker A

So it does seem like of the big tech plays that are AI linked, Oracle has been kind of the most controversial, right?

00:05 Speaker B

Well, they, yeah, they have. You know, I mean, the issue is they’re a, you know, they’re a very small player in cloud computing. They’re about three-ish percent depending on who you look at, uh of the total cloud computing market. Uh they’ve done a couple interesting things. They’ve really focused on sovereign AI or on sovereign uh workloads, which is becoming a big deal, and specifically on AI workloads. So they’re trying to be a bigger part of that. But they have, you know, kind of exclusively almost gone with Nvidia, a little bit of AMD, whereas you see all the other big cloud providers looking at doing, you know, custom accelerators often with Broadcom. Uh so Google’s done that, AWS has done that, Microsoft is doing that. Everybody else is, Meta’s doing that.

00:54 Speaker B

So they’re kind of linked in there and then of course they’re also linked with Open AI. And so the years ago, you know, a year ago, if it was Nvidia and Open AI, you’re like, we’re good. Now it’s like, well, yeah, you’re good, but you know, I think there’s just a sense of a desire for more diversity across the board, right?

01:21 Speaker B

So we’re seeing diversity in the silicon that’s being used to accelerate AI workloads. There’s a lot more interest. Nvidia’s still going to do great. Don’t get me wrong. But people are like, hey, you know what, maybe they don’t have to have 90%, maybe they only have to have 60% share, right?

01:38 Speaker A

Yeah. Yeah.

01:39 Speaker B

Um and so building out all that other stuff. And then again, Open AI is not the only game in town at all anymore. And so there’s a lot of other things happening there. And you know, as you guys were just talking uh as they were just discussing uh in the previous segment, you know, that circular discussion on financing has not gone away. You and I talked about it I think last time I was here. And and that’s that’s just a real factor that has to be brought into this because it does make things a little bit more uncertain. And as a result, and I know I I was uh when I was doing some research, uh Jared did a nice piece last week on the credit default swaps and all the bonds and stuff being that Oracle is using to finance this infrastructure. Again, that’s another question I think that’s been raised.

02:29 Speaker A

Yeah.

02:30 Speaker B

So, you know, the big question for them ultimately is, okay, how do they build that OCI business? Uh their software business is big and fine, but it’s stable and flat, not really doing a whole lot. So OCI is where their opportunity is.

02:49 Speaker A

Okay, so OCI, which is its cloud computing business, what could they say on this call or in this report to ease concerns of investors? What do you think people are going to be paying the most attention to?

02:59 Speaker B

I I think the big things will be uh around obviously other big clients besides an Open AI, right? If they can nail a couple of big uh other big companies and then overall growth. Um, you know, I do think, look, Oracle’s had a very strong business in the enterprise for a long time.

03:22 Speaker B

And again, I this is I think a topic I talked with you about last time as well. Enterprise AI is a growing thing. Actual individual companies starting to build out their AI resources. And so, you know, Oracle has that opportunity because of existing relationships with a lot of enterprises to potentially be a player in some of that. So that would be interesting. a big deal, you know, with some other uh frontier cloud AI provider would be interesting. and, you know, obviously Outlook is going to be a big deal for everybody, right? this week. I think that continues to be the big question.

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