TLDR
- Oracle shares jumped over 7% after reporting strong fiscal Q1 results, with cloud revenue surging 62% year over year
- Adobe shares fell around 3% despite beating earnings estimates, as AI concerns continued to weigh on the stock
- Copart agreed to buy ACV Auctions for about $1.9 billion, sending ACV shares up 44%
- RH jumped 8.2% after beating profit estimates and signaling potential market expansion
- Stock futures edged higher Friday as oil prices dipped and investors awaited the August inflation report
Stock futures moved higher on Friday morning as oil prices pulled back and investors prepared for the release of August inflation data. The report is expected to influence the path of U.S. interest rates.
Several major stocks made sharp moves before the market opened.
Oracle Posts Strong Earnings, Cloud Revenue Surges
Oracle shares rose more than 7% in premarket trading after the company reported fiscal first-quarter results that beat Wall Street estimates. Revenue climbed 30% year over year, while cloud revenue rose 62% to $11.6 billion.
Infrastructure revenue jumped 121% to $7.4 billion. The company also reported that remaining performance obligations reached $664 billion, up $209 billion, including more than $30 billion in new AI cloud contracts.
Oracle delivered more than 300,000 GPUs to AI cloud customers during the quarter. The strong results helped ease some investor concerns about the company’s ties to OpenAI.
For the second fiscal quarter, Oracle expects revenue between $20.88 billion and $21.52 billion. The company also forecast full-year 2027 revenue of at least $90 billion, ahead of analyst consensus.
Adobe Falls Despite Earnings Beat
Adobe shares dropped about 3.7% even though the company reported fiscal third-quarter results above expectations. Adjusted earnings per share of $6.13 beat estimates by $0.05, and revenue rose 13% year over year to $6.76 billion.
Subscription revenue came in at $6.58 billion, with annual recurring revenue reaching $27.5 billion. Adobe also raised its full-year earnings guidance.
Despite those numbers, investor concerns about the impact of AI on Adobe’s business continued to pull the stock lower. The stock has been under pressure for some time due to those worries.
For the fourth quarter, Adobe expects revenue between $6.8 billion and $6.85 billion, which was slightly below analyst consensus at the midpoint.
Copart Acquires ACV Auctions
Copart agreed to acquire ACV Auctions for $10.50 per share in cash, implying an equity value of about $1.9 billion. The offer represents a roughly 45% premium to ACV’s unaffected August 10 closing price.
ACV Auctions shares jumped 44% on the news. Copart shares rose about 7%.
Copart plans to fund the deal with cash on hand. The transaction was approved by both boards and is expected to close by the end of 2026, pending antitrust clearance.
The deal is expected to be earnings-neutral in its first full year and accretive starting in fiscal year 2028.
Other Movers
RH jumped 8.2% after the furniture retailer beat second-quarter profit estimates. The company said recent brand expansion could double its total addressable market.
Oil stocks including Chevron and ExxonMobil slid as U.S. crude futures dropped back below $100 a barrel.
Zumiez shares fell 16% after the retailer reported a wider-than-expected second-quarter loss and a 2.5% drop in revenue.
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