Oracle (NYSE:ORCL) Issues Earnings Results, Beats Expectations By $0.15 EPS

Oracle (NYSE:ORCL) announced its quarterly earnings data on Wednesday. The enterprise software provider reported $2.11 earnings per share for the quarter, beating analysts’ consensus estimates of $1.96 by $0.15, FiscalAI reports. The company had revenue of $19.18 billion during the quarter, compared to analyst estimates of $19.10 billion. Oracle had a net margin of 25.30% and a return on equity of 62.70%. The firm’s revenue for the quarter was up 20.6% on a year-over-year basis. During the same quarter last year, the business posted $1.70 EPS. Oracle updated its Q1 2027 guidance to 1.720-1.760 EPS and its FY 2027 guidance to 8.050-8.050 EPS.

Here are the key takeaways from Oracle’s conference call:

• Oracle delivered a record Q4 and strong full-year FY2026, with revenue up 21% in Q4 to $19.2 billion and full-year revenue surpassing $67 billion for the first time. Non-GAAP EPS also grew strongly, while operating cash flow rose 54% to $32 billion.
• Cloud infrastructure momentum accelerated sharply, as OCI revenue rose 93% in Q4 and cloud database revenue increased 29%, including very rapid growth in multi-cloud database offerings. Management said demand is being driven by AI workloads and enterprise customers using Oracle’s full stack.
• Oracle booked a massive level of future demand, ending the year with RPO of $638 billion, up 363%, which management said gives it exceptional visibility into future revenue. The company expects recognition of this backlog to accelerate over the coming quarters.
• The AI infrastructure business is scaling quickly, with $67 billion in AI infrastructure contracts signed in the quarter and more than 1.2 GW delivered to customers in FY2026. Oracle also said GPU utilization remained high at 97.5% and that several large data center sites are progressing on schedule.
• Oracle is leaning into heavy capital investment and new financing, guiding to about $70 billion of net CapEx outlay in FY2027 and expecting to raise around $40 billion in debt and equity. Management also warned that FY2027 gross margins will decline in the near term as new data centers ramp, even though long-term margin and ROIC expectations remain strong.

Oracle Trading Down 2.3%

Shares of NYSE ORCL opened at $201.04 on Thursday. The company has a debt-to-equity ratio of 3.66, a current ratio of 1.35 and a quick ratio of 1.35. The stock has a market capitalization of $578.21 billion, a P/E ratio of 36.09, a price-to-earnings-growth ratio of 1.61 and a beta of 1.65. Oracle has a 1-year low of $134.57 and a 1-year high of $345.72. The business has a fifty day moving average price of $183.16 and a 200 day moving average price of $177.98.

Oracle Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Friday, July 10th will be given a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Friday, July 10th. Oracle’s payout ratio is presently 35.91%.

Insider Transactions at Oracle

In other Oracle news, EVP Stuart Levey sold 15,000 shares of Oracle stock in a transaction dated Thursday, April 16th. The stock was sold at an average price of $176.19, for a total value of $2,642,850.00. Following the transaction, the executive vice president owned 3,429 shares in the company, valued at $604,155.51. The trade was a 81.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Mpwm Advisory Solutions LLC lifted 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 valued at $32,000 after acquiring an additional 50 shares during the last quarter. Talisman Wealth Advisors LLC grew its holdings in Oracle by 1.9% in the second quarter. Talisman Wealth Advisors LLC now owns 3,086 shares of the enterprise software provider’s stock worth $675,000 after purchasing an additional 59 shares during the last quarter. Oxford Financial Group LTD. LLC grew its holdings in Oracle by 1.0% in the second quarter. Oxford Financial Group LTD. LLC now owns 6,317 shares of the enterprise software provider’s stock worth $1,381,000 after purchasing an additional 64 shares during the last quarter. High Falls Advisors Inc increased its position in shares of Oracle by 2.0% during the fourth quarter. High Falls Advisors Inc now owns 3,540 shares of the enterprise software provider’s stock worth $690,000 after purchasing an additional 70 shares in the last quarter. Finally, Osterweis Capital Management Inc. increased its position in shares of Oracle by 4.0% during the fourth quarter. Osterweis Capital Management Inc. now owns 1,919 shares of the enterprise software provider’s stock worth $374,000 after purchasing an additional 74 shares in the last quarter. Hedge funds and other institutional investors own 42.44% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages recently issued reports on ORCL. Barclays set a $250.00 price target on Oracle in a report on Thursday. Guggenheim reaffirmed a “buy” rating on shares of Oracle in a research report on Friday, June 5th. Royal Bank Of Canada increased their price target on Oracle from $160.00 to $190.00 and gave the stock a “sector perform” rating in a research report on Thursday, June 4th. UBS Group raised their price target on Oracle from $250.00 to $285.00 and gave the company a “buy” rating in a research note on Tuesday, June 2nd. Finally, BTIG Research restated a “buy” rating and issued a $400.00 price objective on shares of Oracle in a report on Friday, June 5th. Three research analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Oracle has an average rating of “Moderate Buy” and a consensus price target of $274.97.

Trending Headlines about Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle delivered a Q4 earnings and revenue beat, with strong cloud infrastructure growth and a record backlog that reinforces demand for its AI/cloud services.
• Positive Sentiment: Management raised guidance for fiscal 2027 profit, signaling confidence in the business outlook despite heavy investment.
• Neutral Sentiment: Oracle also won a $396 million U.S. government contract to modernize HR systems, adding another business win but not likely moving the stock on its own.
• Negative Sentiment: Shares fell after Oracle disclosed a steep increase in AI-related capital spending and additional planned fundraising, fueling fears about rising debt and weaker near-term cash flow.
• Negative Sentiment: Investors are also questioning whether the aggressive spending pace can be sustained without pressuring margins, which has weighed on the broader software sector as well.

Oracle Company Profile

Oracle Corporation is a multinational technology company that develops and sells database software, cloud engineered systems, enterprise software applications and related services. The company is widely known for its flagship Oracle Database and a portfolio of enterprise-grade software products that support data management, application development, analytics and middleware. Over recent years Oracle has expanded its focus to include cloud infrastructure and cloud applications, positioning itself as a provider of both platform and software-as-a-service solutions for large organizations.

Oracle’s product and service offerings include Oracle Database and the Autonomous Database, Oracle Cloud Infrastructure (OCI), enterprise resource planning (ERP), human capital management (HCM) and supply chain management (SCM) cloud applications (often grouped under Oracle Fusion Cloud Applications), middleware such as WebLogic, and developer technologies including Java and MySQL.