Oracle Corporation (NYSE:ORCL – Free Report) – Investment analysts at Erste Group Bank lifted their FY2028 earnings estimates for Oracle in a research report issued to clients and investors on Wednesday, October 21st. Erste Group Bank analyst H. Engel now expects that the enterprise software provider will post earnings per share of $9.32 for the year, up from their prior estimate of $9.27. The consensus estimate for Oracle’s current full-year earnings is $6.73 per share.
Oracle (NYSE:ORCL – Get Free Report) last announced its earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 EPS for the quarter, beating analysts’ consensus estimates of $1.74 by $0.18. Oracle had a net margin of 26.36% and a return on equity of 48.85%. The business had revenue of $19.34 billion during the quarter, compared to analysts’ expectations of $19.13 billion. During the same period in the prior year, the company earned $1.47 earnings per share. The firm’s revenue was up 29.6% on a year-over-year basis. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS.
A number of other brokerages also recently issued reports on ORCL. Stephens reissued an “equal weight” rating and set a $175.00 price objective on shares of Oracle in a research report on Friday, September 11th. JPMorgan Chase & Co. reaffirmed a “buy” rating on shares of Oracle in a report on Thursday, September 10th. Jefferies Financial Group reiterated a “buy” rating and set a $290.00 target price (down from $320.00) on shares of Oracle in a research report on Thursday, September 10th. Royal Bank Of Canada cut their price target on Oracle from $190.00 to $165.00 and set a “sector perform” rating for the company in a report on Friday, September 11th. Finally, President Capital cut their price target on Oracle from $360.00 to $300.00 and set an “overweight” rating for the company in a report on Tuesday, July 14th. One investment analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $249.52.
View Our Latest Report on Oracle
Oracle Trading Down 2.9%
Shares of Oracle stock opened at $125.35 on Friday. The company’s fifty day simple moving average is $143.55 and its 200-day simple moving average is $158.29. The stock has a market capitalization of $379.02 billion, a PE ratio of 19.65, a P/E/G ratio of 0.91 and a beta of 1.78. Oracle has a 1-year low of $114.50 and a 1-year high of $287.19. The company has a debt-to-equity ratio of 1.89, a current ratio of 1.17 and a quick ratio of 1.17.
Institutional Inflows and Outflows
Several hedge funds have recently bought and sold shares of the company. North Point Portfolio Managers Corp OH bought a new stake in Oracle during the third quarter valued at about $27,000. Maseco LLP bought a new position in shares of Oracle in the first quarter worth about $29,000. Persistent Asset Partners Ltd purchased a new position in Oracle in the 2nd quarter worth approximately $29,000. Strengthening Families & Communities LLC lifted its holdings in Oracle by 231.3% in the 3rd quarter. Strengthening Families & Communities LLC now owns 222 shares of the enterprise software provider’s stock worth $30,000 after purchasing an additional 155 shares in the last quarter. Finally, Markowski Investments bought a new position in Oracle in the 2nd quarter worth approximately $32,000. Institutional investors own 42.44% of the company’s stock.
Insiders Place Their Bets
In other news, EVP Maria Smith sold 2,631 shares of the stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $151.70, for a total value of $399,122.70. Following the completion of the sale, the executive vice president directly owned 64,357 shares of the company’s stock, valued at $9,762,956.90. This represents a 3.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Stephen H. Rusckowski acquired 25,000 shares of the firm’s stock in a transaction dated Tuesday, September 29th. The shares were purchased at an average price of $139.35 per share, for a total transaction of $3,483,750.00. Following the completion of the transaction, the director directly owned 25,390 shares in the company, valued at approximately $3,538,096.50. This trade represents a 6,410.26% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders sold a total of 36,075 shares of company stock worth $5,342,123 over the last three months. 38.40% of the stock is currently owned by company insiders.
Oracle Dividend Announcement
The company also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders of record on Friday, October 9th will be issued a dividend of $0.50 per share. The ex-dividend date of this dividend is Friday, October 9th. This represents a $2.00 annualized dividend and a yield of 1.6%. Oracle’s payout ratio is currently 31.35%.
Oracle News Summary
Here are the key news stories impacting Oracle this week:
- Positive Sentiment: Analysts see significant upside. Cantor Fitzgerald reaffirmed an Overweight rating and a $284 price target, while other long-term valuation models project substantially higher values. Supporters point to Oracle’s large cloud backlog, potential earnings acceleration and efforts to control costs and strengthen its balance sheet. Cantor Fitzgerald rating
- Positive Sentiment: Potential Nvidia support could ease funding pressure. TD Cowen suggested that Nvidia may be helping Oracle finance or secure commitments for data-center capacity, a development that could improve Oracle’s ability to expand its AI infrastructure if confirmed. TD Cowen Nvidia analysis
- Neutral Sentiment: Investor day may provide important details. RBC expects Oracle to discuss its Oracle Cloud Infrastructure capacity ramp, applications growth and the economics of its expansion. Investors will likely look for evidence that demand and backlog can translate into cash flow.
- Neutral Sentiment: Product and customer announcements reinforce the growth narrative. Oracle introduced Fusion Claw agentic HR applications, and Southwest General expanded its use of Oracle Health and Fusion Cloud products. These announcements support adoption but are unlikely to materially change near-term financial results. Oracle Fusion Claw announcement
- Negative Sentiment: AI spending and leverage remain the main risks. Oracle is reportedly selling stock, issuing debt and relying on customer prepayments to fund data centers. Analysts have highlighted deeply negative free cash flow, bond yields approaching 9% and a credit rating only one notch above junk, raising concerns about interest expense, dilution and execution.
- Negative Sentiment: The selloff reflects a valuation-to-cash-flow mismatch. Oracle’s cloud backlog reportedly exceeds $664 billion, but investors remain unconvinced that the backlog will convert into cash quickly enough to justify the infrastructure spending. The stock’s steep yearlong decline and weaker performance than the broader market indicate continued skepticism about the timing and profitability of the AI strategy. Oracle growth and valuation analysis
Oracle Company Profile
Oracle Corporation (NYSE: ORCL) is a global technology company that develops enterprise software, cloud infrastructure and database technologies. Its products help organizations store, manage, analyze and secure data, while supporting business operations across industries and geographies.
The company’s offerings include Oracle Database, Java, Oracle Cloud Infrastructure and a broad portfolio of cloud-based applications. These applications serve functions such as enterprise resource planning, financial management, human resources, supply-chain management, customer experience and industry-specific operations.
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