Oracle Shares Slide a Day After Reporting Second-Quarter Results

Shares of computing giant Oracle Corporation fell more than 11% during afternoon trading Tuesday, a day after the company reported its second-quarter earnings.

The Austin-based tech company reported seemingly solid results on Monday yet missed Wall Street revenue estimates.

Oracle's revenue grew 5% to $12.9 billion in the quarter ended Sept. 30, compared with $12.3 billion in the same quarter the year before. However, it failed to meet the consensus estimate of $13.1 billion from analysts surveyed by Zacks Investment Research.

Its net income soared 44% to $2.5 billion from $1.7 billion a year ago. And its adjusted earnings per share came to $1.34, slightly up from the consensus estimate of $1.32, according to Zacks Investment Research.

The company also announced that it expects its third-quarter revenue to grow between 6% and 8%, chief executive Safra Catz said in a call with analysts on Monday.

The revenue projection comes as the company has gone all in on its cloud services. Oracle's cloud services and license support accounted for 74% of the company's total revenue in the second quarter.

"Oracle is in the process of expanding 66 of our existing cloud data centers—and building 100 new cloud data centers—to meet growing demand,” said Oracle Executive Chairman and Chief Technology Officer Larry Ellison in a statement.

Catz told investors that as the company's capabilities meet demand it expects its cloud infrastructure growth rate to be "over 50% for a few years."