Oracle's (ORCL) Equal Weight Rating Reiterated at Stephens

Key Points

• Stephens reiterated an “equal weight” rating on Oracle and set a $175 price target, implying approximately 14.25% upside from the cited share price.
• Oracle reported quarterly adjusted EPS of $1.92 versus the $1.74 consensus estimate, while revenue rose 29.6% year over year to about $19.34 billion.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and $256.59 price target, though targets vary significantly and investors face execution, financing, and heavy AI-investment risks.

Oracle (NYSE:ORCL - Get Free Report)'s stock had its "equal weight" rating restated by analysts at Stephens in a note issued to investors on Friday, Benzinga reports. They currently have a $175.00 target price on the enterprise software provider's stock. Stephens' price objective points to a potential upside of 14.25% from the stock's current price.

Several other research firms have also commented on ORCL. Oppenheimer reiterated an "outperform" rating on shares of Oracle in a report on Tuesday. Jefferies Financial Group decreased their price objective on Oracle from $320.00 to $290.00 and set a "buy" rating on the stock in a report on Wednesday, September 2nd. Wedbush lowered their price objective on Oracle from $275.00 to $240.00 and set an "outperform" rating for the company in a research report on Thursday, June 11th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $190.00 price target on shares of Oracle in a research note on Friday, September 4th. Finally, DA Davidson raised their price objective on Oracle from $200.00 to $225.00 and gave the stock a "buy" rating in a research report on Thursday, June 11th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $256.59.

Oracle Stock Down 5.2%

Shares of NYSE ORCL opened at $153.17 on Friday. The firm has a market cap of $441.20 billion, a price-to-earnings ratio of 26.27, a price-to-earnings-growth ratio of 1.20 and a beta of 1.74. Oracle has a 52-week low of $114.50 and a 52-week high of $331.00. The company's 50-day simple moving average is $140.88 and its 200-day simple moving average is $160.46. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 3.21.

Oracle (NYSE:ORCL - Get Free Report) last posted its quarterly earnings data on Thursday, September 10th. The enterprise software provider reported $1.92 EPS for the quarter, beating the consensus estimate of $1.74 by $0.18. The firm had revenue of $19.34 billion during the quarter, compared to the consensus estimate of $19.13 billion. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The firm's revenue was up 29.6% compared to the same quarter last year. During the same period in the prior year, the company earned $1.47 EPS. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. Equities analysts predict that Oracle will post 6.51 EPS for the current fiscal year.

Insider Transactions at Oracle

In other Oracle news, Vice Chairman Jeffrey Henley sold 400,000 shares of the company's stock in a transaction dated 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 sale, the insider owned 400,000 shares in the company, valued at $63,664,000. This represents a 50.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 40.90% of the company's stock.

Institutional Investors Weigh In On Oracle

Institutional investors have recently modified their holdings of the company. California State Teachers Retirement System raised its holdings in Oracle by 14,636.4% during the second quarter. California State Teachers Retirement System now owns 382,756,945 shares of the enterprise software provider's stock worth $56,093,030,000 after purchasing an additional 380,159,589 shares in the last quarter. State Street Corp raised its position in Oracle by 4.4% in the 4th 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 last quarter. Geode Capital Management LLC boosted its stake in Oracle by 1.8% during the 4th quarter. Geode Capital Management LLC now owns 37,734,944 shares of the enterprise software provider's stock worth $7,328,754,000 after purchasing an additional 665,374 shares during the period. Capital Research Global Investors increased its stake in Oracle by 29.3% in the fourth quarter. Capital Research Global Investors now owns 30,137,126 shares of the enterprise software provider's stock valued at $5,874,070,000 after purchasing an additional 6,826,299 shares during the period. Finally, Morgan Stanley raised its holdings in shares of Oracle by 1.9% in 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 buying an additional 495,146 shares during the last quarter. 42.44% of the stock is owned by hedge funds and other institutional investors.

Oracle News Roundup

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Results exceeded expectations: Oracle reported adjusted earnings of $1.92 per share versus the $1.74 consensus estimate, while revenue increased 29.6% year over year to approximately $19.35 billion, ahead of forecasts. Oracle jumps after reporting revenue growth fueled by AI cloud demand
• Positive Sentiment: AI cloud growth was the key catalyst: Cloud infrastructure revenue surged 121% to about $7.4 billion, reinforcing the view that Oracle is benefiting from rising demand for AI computing capacity. The company’s remaining performance obligations also reached roughly $664 billion, providing significant future revenue visibility. Oracle shares rise as AI cloud backlog beats estimates
• Positive Sentiment: Guidance improved investor confidence: Oracle forecast fiscal 2027 adjusted EPS of $8.10, above the approximately $7.75 consensus, and issued second-quarter EPS guidance of $1.85-$1.93 versus expectations near $1.82. Analysts including Cantor Fitzgerald and William Blair maintained bullish ratings, while Cantor set a $284 price target.
• Positive Sentiment: AI spending appears to be producing tangible demand: Management maintained its fiscal 2027 capital-expenditure outlook of $90 billion-$95 billion, suggesting confidence that data-center investments will support continued cloud growth.
• Neutral Sentiment: Analyst views remain mixed: BMO Capital Markets lowered its price target from $220 to $195 but retained an “outperform” rating, reflecting continued upside potential alongside valuation and execution concerns.
• Neutral Sentiment: Oracle declared a quarterly dividend of $0.50 per share, payable October 23 to shareholders of record October 9. The dividend provides modest income support but is not the primary driver of the session’s trading.
• Negative Sentiment: Financing and execution risks remain: Oracle’s New Mexico data-center construction has been delayed by a gas-pipeline issue, while heavy AI investment continues to pressure free cash flow. Investors will watch whether the large backlog converts into revenue and cash quickly enough to justify the spending.

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.

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