Oracle stock slides amid Cerner revenue performance

Oracle stock dropped 12 percent on Sept. 12, the steepest drop since 2002, after the software giant reported lower-than-expected revenue, CNBC reported.

Oracle executives blamed some of the financial challenges on absorbing its Cerner EHR unit. The company closed its $28.2 billion acquisition of Cerner in June 2022 and has been working on moving Cerner to the cloud.

"This transition is resulting in some near-term headwinds to the Cerner growth rate as customers move from licensed purchases, which are recognized upfront, to cloud subscriptions, which are recognized ratably," Oracle CEO Safra Catz said.

Despite the drop, Oracle shares are still up 34 percent year to date. The company has been undergoing a restructuring plan that includes layoffs at Cerner.

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