Oracle Misses Q2 Earnings Estimates, Shares Drop: ETFs in Focus

Oracle ORCL reported lackluster second-quarter fiscal 2025 results on Monday after the bell, missing earnings estimates. Oracle shares dropped 8% in after market hours.

Following the results, ETFs with the highest allocation to this software giant are in focus for the coming weeks. These include Pacer Data and Digital Revolution ETF TRFK, First Trust NASDAQ Technology Dividend Index Fund TDIV, FT Vest Technology Dividend Target Income ETF TDVI, LAFFER | TENGLER Equity Income ETF TGLR and First Trust Innovation Leaders ETF ILDR.

Oracle Earnings in Focus

The company’s earnings per share were $1.47, missing the Zacks Consensus Estimate by a penny but increasing 10% from the year-ago earnings. Revenues rose 9% year over year to $14.1 billion and were in line with the Zacks Consensus Estimate (see: all the Technology ETFs here). 

The business is booming due to soaring demand for computing power that can handle artificial intelligence projects. Revenues from its cloud infrastructure unit soared 52% year over year to $2.4 billion.

The company expects fiscal third-quarter revenue growth of 7-9% and earnings per share in the range of $1.41 to $1.47. Oracle maintained that revenue growth will accelerate further in the coming quarters. Total cloud revenue growth is anticipated to be between 23% and 25%. Cloud revenues are expected to reach $25 billion this fiscal year, with significant growth in AI workloads and multi-cloud agreements.

ETFs in Focus

Let us delve into each ETF below:

Pacer Data and Digital Revolution ETF (TRFK)

Pacer Data and Digital Revolution ETF aims to offer investors exposure to globally listed stocks and depositary receipts of data and digital revolution companies. It follows the Pacer Data Transmission and Communication Revolution Index, holding 78 stocks in its basket. Oracle takes the top spot, accounting for 9.9% of the assets. 

Pacer Data and Digital Revolution ETF has accumulated $52.4 million in its asset base and charges 60 bps in annual fees. It trades in an average daily volume of 10,000 shares.

First Trust NASDAQ Technology Dividend Index Fund (TDIV)

First Trust NASDAQ Technology Dividend Index Fund provides exposure to dividend payers in the technology sector by tracking the Nasdaq Technology Dividend Index. TDIV holds about 86 securities in its basket. Of these firms, ORCL occupies the top position, making up 9.4% of the assets.

First Trust NASDAQ Technology Dividend Index Fund has $2.9 billion in its asset base and trades in a moderate volume of about 92,000 shares per day. The ETF charges 50 bps in annual fees (read: A Guide to Dividend Aristocrat ETFs).

FT Vest Technology Dividend Target Income ETF (TDVI)

FT Cboe Vest Technology Dividend Target Income ETF is an actively managed fund that seeks to provide a target level of current income and capital appreciation by holding a portfolio of dividend-paying U.S. technology companies. The fund invests primarily in U.S. securities contained in the Nasdaq Technology Dividend Index and by utilizing an "option strategy" consisting of writing (selling) U.S. exchange-traded call options on the Nasdaq-100 Index and/or the S&P 500 Index or exchange-traded funds that track the Nasdaq-100 Index or the S&P 500 Index.

FT Vest Technology Dividend Target Income ETF holds 86 securities in its basket, with ORCL taking the top spot at 9.4% share. It has accumulated $48.3 million in its asset base and trades in a volume of 22,000 shares per day on average. TDVI charges 75 bps in annual fees. 

LAFFER | TENGLER Equity Income ETF (TGLR)

LAFFER | TENGLER Equity Income ETF is an actively managed fund that seeks to achieve its investment objective by investing in high-quality, large-cap stocks that are believed to have strong earnings and dividend growth potential and an above-market dividend yield. It holds 31 stocks in its basket with Oracle taking the top spot at 6.2% share. 

LAFFER | TENGLER Equity Income ETF has managed assets worth $13.8 million and trades in an average daily volume of 2,000 shares. It charges 95 bps in annual fees. 

First Trust Innovation Leaders ETF (ILDR)

First Trust Innovation Leaders ETF is an actively managed ETF seeking to offer exposure to companies that may benefit from the development or application of scientific and technological innovation. It holds 65 stocks in its basket with Oracle occupying the third position at 6.1% share. 

First Trust Innovation Leaders ETF has $53.7 million in its asset base and trades in a paltry volume of about 13,000 shares per day. The ETF charges 76 bps in annual fees.

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