Oracle (NYSE:ORCL) Updates FY 2027 Earnings Guidance

Oracle (NYSE:ORCL) issued an update on its FY 2027 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 8.100-8.100 for the period, compared to the consensus estimate of 7.750. The company issued revenue guidance of $90.0B-, compared to the consensus revenue estimate of $89.5 billion. Oracle also updated its Q2 2027 guidance to 1.850-1.930 EPS.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the stock. DA Davidson restated a “buy” rating and issued a $225.00 target price on shares of Oracle in a report on Friday. Mizuho set a $320.00 price objective on Oracle in a research report on Wednesday, June 3rd. Jefferies Financial Group decreased their price target on shares of Oracle from $320.00 to $290.00 and set a “buy” rating on the stock in a research note on Wednesday, September 2nd. Citizens Jmp reissued a “market outperform” rating and issued a $285.00 price target on shares of Oracle in a research note on Wednesday. Finally, CLSA assumed coverage on shares of Oracle in a research report on Monday, July 20th. They set a “hold” rating and a $145.00 price target on the stock. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $256.05.

Oracle Stock Performance

Oracle stock opened at $150.13 on Friday. The firm has a 50-day moving average of $141.08 and a 200-day moving average of $160.39. The firm has a market cap of $432.45 billion, a P/E ratio of 23.53, a P/E/G ratio of 1.13 and a beta of 1.74. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 3.21. Oracle has a 1-year low of $114.50 and a 1-year high of $329.50.

Oracle (NYSE:ORCL) last issued its quarterly earnings data on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share (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 58.85%. The firm had revenue of $19.34 billion during the quarter, compared to the consensus estimate of $19.13 billion. During the same quarter in the previous year, the firm posted $1.47 EPS. The company’s revenue for the quarter was up 29.6% compared to the same quarter last year. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. Sell-side analysts expect that Oracle will post 6.51 EPS for the current year.

Oracle Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders of record on Friday, October 9th will be given a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Friday, October 9th. Oracle’s dividend payout ratio (DPR) is currently 31.35%.

Insider Buying and Selling at Oracle

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

Oracle News Summary

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle reported adjusted EPS of $1.92 versus the $1.74 consensus estimate, while revenue rose 29.6% year over year to approximately $19.35 billion, beating expectations. Surging cloud revenue boosted Oracle’s quarterly results
• Positive Sentiment: Cloud infrastructure revenue surged 121% to about $7.4 billion, and remaining performance obligations reached a record $664 billion. AI infrastructure contracts reportedly exceed $30 billion, providing substantial revenue visibility. Oracle Q1 Earnings Beat Estimates, Cloud Growth Accelerates
• Positive Sentiment: Management raised its fiscal 2027 outlook to at least $90 billion in revenue and $8.10 in adjusted EPS. Analysts also noted that expiring AI contracts are renewing at prices roughly 20% higher, suggesting durable demand for Oracle’s computing capacity. Oracle Says Its Expiring AI Contracts Are Renewing 20% Higher
• Neutral Sentiment: Analyst reactions remain broadly constructive, with several firms reiterating Buy or Outperform ratings, although some price targets were reduced to reflect valuation and financing risks.
• Negative Sentiment: Oracle is maintaining capital expenditures of roughly $90 billion to $95 billion for fiscal 2027. Free cash flow remained negative, and investors are concerned that debt and equity financing could delay the payoff from its AI investments. Oracle Nearly Erases 7% Jump Despite $664 Billion AI Backlog
• Negative Sentiment: Execution risks persist: a New Mexico data-center project has faced delays, and Oracle’s profitability and efficiency have not yet fully reflected the scale of its AI demand.

Hedge Funds Weigh In On Oracle

A number of large investors have recently made changes to their positions in ORCL. Osbon Capital Management LLC acquired a new position in Oracle during the 4th quarter valued at $28,000. FSA Wealth Management LLC acquired a new position in shares of Oracle during the 3rd quarter worth about $28,000. Ankerstar Wealth LLC acquired a new position in shares of Oracle during the 4th quarter worth approximately $31,000. Mpwm Advisory Solutions LLC increased its position in Oracle by 76.9% during the third quarter. Mpwm Advisory Solutions LLC now owns 115 shares of the enterprise software provider’s stock worth $32,000 after acquiring an additional 50 shares during the period. Finally, Turning Point Benefit Group Inc. acquired a new stake in shares of Oracle in the 3rd quarter valued at $35,000. Institutional investors and hedge funds own 42.44% of the company’s stock.

Oracle Company Profile

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.