Tech giants publish reports: Oracle reassures, Adobe disappoints

Oracle and Adobe published their financial reports for the quarter, both beating analyst expectations. Oracle is surging in after-hours trading thanks to a backlog of $664 billion, mainly in AI infrastructure. Adobe, on the other hand, is weakening amid investor concerns about the impact of the AI revolution on its business model and expected management changes.

Tech giants Oracle and Adobe published their financial reports this evening (Thursday), both beating analyst expectations. However, investor reactions are opposite: Oracle is surging 6% in after-hours trading, while Adobe is weakening. Oracle reported revenue of $19.3 billion in the first quarter of fiscal 2027, a 30% increase from the same quarter last year, above the forecast of $19.1 billion. Adjusted earnings per share stood at $1.92 compared to a forecast of $1.74. The backlog reached $664 billion, up from $638 billion in the previous quarter, with a significant portion related to AI infrastructure contracts. The company raised its annual revenue forecast to at least $90 billion. Oracle's stock has been cut by more than 50% from its 2025 peak and over 20% since the start of the year amid concerns about the scale of investments in data centers. Adobe reported revenue of $6.76 billion in the third quarter, compared to a forecast of $6.69 billion, and adjusted earnings of $6.13 per share versus a forecast of $6.08. Despite this, the stock is falling in after-hours trading due to investor concerns about the impact of the AI revolution on its business model and growing competition from new AI tools. In December, Anil Chakravarthy will replace longtime CEO Shantanu Narayen, adding uncertainty. The article illustrates two sides of the AI revolution: Oracle on the infrastructure side benefiting from demand for data centers and cloud services, and Adobe on the software side grappling with the question of how AI will translate into revenue growth.