Oracle (NYSE:ORCL) Announces Earnings Results, Beats Expectations By $0.18 EPS

Oracle (NYSE:ORCL) issued its quarterly earnings results on Thursday. The enterprise software provider reported $1.92 earnings per share for the quarter, topping analysts’ consensus estimates of $1.74 by $0.18, FiscalAI reports. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The firm had revenue of $19.34 billion during the quarter, compared to analysts’ expectations of $19.13 billion. Oracle updated its Q2 2027 guidance to 1.850-1.930 EPS and its FY 2027 guidance to 8.100-8.100 EPS.

Oracle Stock Performance

NYSE:ORCL traded down $8.46 during mid-day trading on Thursday, reaching $153.17. The stock had a trading volume of 50,432,372 shares, compared to its average volume of 28,875,305. Oracle has a twelve month low of $114.50 and a twelve month high of $331.00. The business has a 50 day simple moving average of $140.63 and a 200 day simple moving average of $160.42. The firm has a market capitalization of $441.20 billion, a price-to-earnings ratio of 26.27, a PEG ratio of 1.21 and a beta of 1.74. The company has a debt-to-equity ratio of 3.21, a quick ratio of 1.12 and a current ratio of 1.12.

Oracle News Summary

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s roughly $638 billion backlog remains a significant growth catalyst. Wall Street expects approximately 28% revenue growth, while Bank of America forecasts infrastructure-as-a-service growth of 116% year over year. Oracle set to report as Street weighs capex risk against cloud growth
• Positive Sentiment: Options markets are pricing in an unusually large post-earnings move of about 11% to 12%, with call options generally more expensive than puts. That suggests some traders are positioned for a strong upside reaction if Oracle delivers a cloud-growth or guidance surprise. Oracle Stock Is Down 17% This Year, But Options Traders Bet on a Blowout
• Positive Sentiment: Several analysts remain constructive: Scotiabank retained an Outperform rating despite reducing its price target to $215, while other firms maintain targets well above the current share price. Oracle’s expanded AI-infrastructure work with Hewlett Packard Enterprise and new cloud-marketplace partnerships also support its strategic positioning.
• Neutral Sentiment: Investors are focused on the earnings release and management commentary, particularly cloud infrastructure growth, backlog conversion, data-center capacity additions, capital expenditures and free-cash-flow guidance. Options pricing indicates the report could produce one of the stock’s largest moves of the year. Here’s How Much Traders Expect Oracle Stock to Move After Earnings
• Negative Sentiment: The stock is lower ahead of results because investors are concerned about Oracle’s planned $70 billion annual capital budget, compared with roughly $32 billion of cash generated by the business last year. The resulting financing needs, debt burden and potential cash-flow pressure have made the AI expansion look increasingly leveraged. Oracle Reports Thursday. Its Capital Budget Is More Than Twice the Cash Its Business Produces
• Negative Sentiment: Oracle has surrendered much of its prior AI-driven rally and remains well below its record high. Traders are questioning whether large contracts represent near-term, cash-generating demand or merely long-dated commitments that require substantial spending before producing returns. Rising Treasury yields and oil prices are adding broader pressure to high-growth technology shares.

Analyst Ratings Changes

ORCL has been the topic of a number of research reports. CLSA assumed coverage on Oracle in a report on Monday, July 20th. They set a “hold” rating and a $145.00 price target on the stock. Evercore reaffirmed an “outperform” rating and set a $245.00 price objective on shares of Oracle in a research note on Monday, June 8th. Stephens reiterated an “equal weight” rating and issued a $164.00 target price on shares of Oracle in a research note on Thursday, June 11th. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $190.00 target price on shares of Oracle in a research note on Friday, September 4th. Finally, Jefferies Financial Group cut their price target on Oracle from $320.00 to $290.00 and set a “buy” rating for the company in a research note on Wednesday, September 2nd. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $257.86.

Insider Transactions at Oracle

In other news, Vice Chairman Jeffrey Henley sold 400,000 shares of the stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $159.16, for a total transaction of $63,664,000.00. Following the completion of the transaction, the insider directly owned 400,000 shares of the company’s stock, valued at approximately $63,664,000. This represents a 50.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 40.90% of the company’s stock.

Institutional Trading of Oracle

Institutional investors have recently modified their holdings of the business. FIL Ltd grew its holdings in Oracle by 1,605.7% during the 4th quarter. FIL Ltd now owns 3,976,441 shares of the enterprise software provider’s stock valued at $775,048,000 after buying an additional 3,743,314 shares during the last quarter. State Street Corp increased its position in Oracle by 4.4% during the fourth quarter. State Street Corp now owns 76,527,759 shares of the enterprise software provider’s stock worth $14,916,026,000 after buying an additional 3,216,915 shares in the last quarter. Amundi raised its holdings in shares of Oracle by 32.9% in the third quarter. Amundi now owns 9,636,090 shares of the enterprise software provider’s stock worth $2,809,609,000 after acquiring an additional 2,385,556 shares during the last quarter. Bank of Nova Scotia raised its holdings in shares of Oracle by 190.4% in the fourth quarter. Bank of Nova Scotia now owns 2,277,362 shares of the enterprise software provider’s stock worth $443,879,000 after acquiring an additional 1,493,096 shares during the last quarter. Finally, Bridgewater Associates LP lifted its position in shares of Oracle by 361.1% in the fourth quarter. Bridgewater Associates LP now owns 1,873,481 shares of the enterprise software provider’s stock valued at $365,160,000 after acquiring an additional 1,467,202 shares in the last quarter. 42.44% of the stock is currently owned by hedge funds and other institutional investors.

About Oracle

Oracle Corporation is a global enterprise technology company that develops and provides database software, cloud infrastructure, business applications and related technology services. Its offerings help organizations manage data, run applications, support business operations and build technology environments across on-premises, hybrid and cloud-based settings.

The company’s products include Oracle Database, MySQL, Java, Oracle Cloud Infrastructure and a broad portfolio of cloud applications for enterprise resource planning, financial management, human resources, supply chain management, customer experience and industry-specific operations.