Oracle reported third-quarter results that fell short of Wall Street’s revenue expectations, sending its shares down more than 6% in after-hours trading on Wednesday. The software giant posted revenue of $13.7 billion for the quarter ended November 30, missing analysts’ estimates, despite recording 14% year-over-year growth. Net income surged to $6.14 billion, or $2.14 per share, compared to $3.15 billion, or $1.13 per share, in the same period last year. The strong profit increase was driven by cost discipline and higher margins, even as revenue growth slowed compared to previous quarters. The results come as Oracle continues to heavily invest in artificial intelligence, betting on massive data center expansion to capture more cloud business. The company has been positioning itself as a key infrastructure partner for AI-driven workloads, particularly after a surge in cloud bookings tied to AI in its September earnings report, which had previously sent shares to a record high. However, that momentum has since faded. Oracle’s stock has dropped nearly a third since then, as investors grow increasingly concerned about the company’s capital expenditure needs and the long-term viability of its cloud commitments. A major factor in the skepticism is the reliance on high-profile clients like OpenAI, whose multibillion-dollar cloud spending plans remain unproven and subject to execution risk. “Capex and financing needs have been the biggest investor question over the last two months, weighing on the stock,” said Derrick Wood, an analyst at TD Cowen. “While Oracle’s AI strategy is ambitious, the scale of investment required raises concerns about cash flow and return on capital.” Despite the disappointment, Oracle remains a central player in the AI infrastructure race, with its cloud division showing strong demand for AI-optimized services. The company continues to roll out new AI features and expand its data center footprint globally, aiming to solidify its position as a top-tier cloud provider. The situation remains fluid, with market reaction likely to depend on how Oracle manages its capital strategy and whether its AI investments begin to deliver consistent revenue growth in the coming quarters.