Oracle falls on report of razor-thin gross profit margins in cloud business
ReutersOct 8, 2025 1:51 AM
Shares of AI cloud firm Oracle ORCL.N down 5.7% at $275
Internal documents show Oracle's fast-growing cloud business has razor-thin gross profit margins in the past year or so, the Information reports
In some cases, Oracle is losing considerable sums of money on rentals of small quantities of newer and older versions of Nvidia chips, the report said
Oracle did not immediately respond to a Reuters request for comment
In the three months that ended in August, Oracle generated around $900 million from rentals of servers powered by Nvidia chips and recorded a gross profit of $125 million—equal to 14 cents for every $1 of sales, according to the report
Including session moves, ORCL up 67% YTD
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