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

Oracle (NYSE:ORCL) released its quarterly earnings results on Wednesday. The enterprise software provider reported $2.11 earnings per share for the quarter, topping analysts’ consensus estimates of $1.96 by $0.15, FiscalAI reports. Oracle had a net margin of 25.37% and a return on equity of 62.74%. The business had revenue of $19.18 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same quarter last year, the company earned $1.70 earnings per share. The business’s quarterly revenue was up 20.6% compared to the same quarter last year. 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 Stock Performance

ORCL stock opened at $184.03 on Friday. The company has a debt-to-equity ratio of 3.66, a quick ratio of 1.35 and a current ratio of 1.35. The stock has a market capitalization of $529.27 billion, a price-to-earnings ratio of 31.57, a PEG ratio of 1.58 and a beta of 1.65. Oracle has a 1 year low of $134.57 and a 1 year high of $345.72. The stock’s fifty day moving average is $183.90 and its two-hundred day moving average is $177.88.

Oracle Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Friday, July 10th. Oracle’s dividend payout ratio (DPR) is presently 35.91%.

Insider Transactions at Oracle

In other Oracle news, EVP Stuart Levey sold 15,000 shares of the firm’s stock in a transaction on 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 sale, the executive vice president directly owned 3,429 shares in the company, valued at approximately $604,155.51. This trade represents a 81.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 40.90% of the company’s stock.

Institutional Investors Weigh In On Oracle

A number of hedge funds have recently added to or reduced their stakes in the stock. State Street Corp increased its holdings in shares of Oracle by 4.4% during the fourth quarter. State Street Corp now owns 76,527,759 shares of the enterprise software provider’s stock valued at $14,916,026,000 after purchasing an additional 3,216,915 shares during the period. Morgan Stanley increased its holdings in shares of Oracle by 1.9% during the fourth quarter. Morgan Stanley now owns 27,125,099 shares of the enterprise software provider’s stock valued at $5,286,953,000 after purchasing an additional 495,146 shares during the period. Amundi increased its holdings in shares of Oracle by 32.9% during the third quarter. Amundi now owns 9,636,090 shares of the enterprise software provider’s stock valued at $2,809,609,000 after purchasing an additional 2,385,556 shares during the period. FIL Ltd increased its holdings in shares of Oracle by 1,605.7% during the fourth quarter. FIL Ltd now owns 3,976,441 shares of the enterprise software provider’s stock valued at $775,048,000 after purchasing an additional 3,743,314 shares during the period. Finally, Ensign Peak Advisors Inc increased its holdings in shares of Oracle by 18.8% during the fourth quarter. Ensign Peak Advisors Inc now owns 3,597,367 shares of the enterprise software provider’s stock valued at $701,163,000 after purchasing an additional 568,894 shares during the period. 42.44% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. Oppenheimer raised their price target on shares of Oracle from $235.00 to $275.00 and gave the stock an “outperform” rating in a research report on Monday. Cantor Fitzgerald reissued an “overweight” rating and set a $284.00 price target on shares of Oracle in a research report on Thursday. Wedbush decreased their price target on shares of Oracle from $275.00 to $240.00 and set an “outperform” rating for the company in a research report on Thursday. Evercore reissued an “outperform” rating and set a $245.00 price target on shares of Oracle in a research report on Monday. Finally, Barclays raised their price objective on Oracle from $240.00 to $250.00 and gave the stock an “overweight” rating in a research note on Thursday. Three research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $268.27.

Key Stories Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle beat fiscal Q4 earnings and revenue estimates, with revenue up 21% year over year and cloud infrastructure revenue up 93%, showing strong demand for its AI and cloud services.
• Positive Sentiment: The company raised FY2027 revenue and EPS guidance and reported a record $638 billion remaining performance obligation backlog, signaling substantial future demand.
• Positive Sentiment: Oracle also won a $395.8 million U.S. Office of Personnel Management contract to modernize federal HR systems, adding a new government customer win.
• Neutral Sentiment: Analysts at several firms raised or reaffirmed price targets after the report, indicating Wall Street still sees upside despite the selloff.
• Negative Sentiment: Investors reacted negatively to Oracle’s plan to sharply increase AI-related capital expenditures and raise about $40 billion in debt and equity financing, which sparked fears over cash burn and leverage.
• Negative Sentiment: Reports of an active PeopleSoft zero-day attack and Oracle’s urgent patch warning may add near-term cybersecurity concerns, though this is more of a reputational issue than a direct earnings hit.

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.