Erste Group Bank Forecasts Increased Earnings for Oracle

Key Points

• Erste Group Bank slightly raised its FY2027 EPS estimate for Oracle to $6.33 from $6.32, matching the current consensus forecast.
• Oracle’s latest quarterly results beat expectations, with EPS of $2.11 on revenue of $19.18 billion, helped by 20.6% year-over-year revenue growth.
• Analysts remain broadly positive despite recent volatility: several firms lifted or reaffirmed price targets, and MarketBeat says Oracle holds a Moderate Buy consensus rating with an average target of $268.27.

Oracle Corporation (NYSE:ORCL - Free Report) - Stock analysts at Erste Group Bank lifted their FY2027 earnings per share (EPS) estimates for shares of Oracle in a research note issued on Friday, June 5th. Erste Group Bank analyst H. Engel now anticipates that the enterprise software provider will post earnings per share of $6.33 for the year, up from their prior forecast of $6.32. The consensus estimate for Oracle's current full-year earnings is $6.33 per share.

Oracle (NYSE:ORCL - Get Free Report) last issued its earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.96 by $0.15. Oracle had a return on equity of 62.74% and a net margin of 25.37%.The company had revenue of $19.18 billion for the quarter, compared to analysts' expectations of $19.10 billion. During the same period last year, the business earned $1.70 EPS. Oracle's quarterly revenue was up 20.6% compared to the same quarter last year. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS.

ORCL has been the topic of a number of other reports. Wolfe Research reiterated an "outperform" rating and issued a $225.00 target price on shares of Oracle in a report on Thursday. Barclays increased their target price on Oracle from $240.00 to $250.00 and gave the stock an "overweight" rating in a report on Thursday. KeyCorp reiterated an "overweight" rating on shares of Oracle in a report on Thursday. Scotiabank reissued an "overweight" rating on shares of Oracle in a research report on Thursday. Finally, Moffett Nathanson set a $325.00 price target on Oracle in a research report on Thursday. Three analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $268.27.

Oracle Price Performance

Shares of ORCL opened at $184.03 on Friday. Oracle has a 12-month low of $134.57 and a 12-month high of $345.72. The business's fifty day moving average is $183.90 and its 200 day moving average is $177.88. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 3.66. The stock has a market cap of $529.27 billion, a P/E ratio of 31.57, a P/E/G ratio of 1.58 and a beta of 1.65.

Oracle Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Friday, July 10th. Oracle's dividend payout ratio is presently 35.91%.

Insider Buying and Selling

In related news, EVP Stuart Levey sold 15,000 shares of the 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 completion of the sale, the executive vice president directly owned 3,429 shares of the company's stock, valued at approximately $604,155.51. This represents a 81.39% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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

Several large investors have recently made changes to their positions in the business. FAS Wealth Partners Inc. increased its position in shares of Oracle by 7.1% during the 1st quarter. FAS Wealth Partners Inc. now owns 6,529 shares of the enterprise software provider's stock valued at $961,000 after purchasing an additional 430 shares during the last quarter. Rathbones Group PLC increased its position in shares of Oracle by 1.1% during the 1st quarter. Rathbones Group PLC now owns 44,975 shares of the enterprise software provider's stock valued at $6,616,000 after purchasing an additional 473 shares during the last quarter. Robinswood Financial LLC purchased a new stake in shares of Oracle during the 1st quarter valued at $54,000. First National Bank of Mount Dora Trust Investment Services increased its position in shares of Oracle by 31.1% during the 1st quarter. First National Bank of Mount Dora Trust Investment Services now owns 47,844 shares of the enterprise software provider's stock valued at $7,038,000 after purchasing an additional 11,356 shares during the last quarter. Finally, Wealthquest Corp increased its position in shares of Oracle by 12.6% during the 1st quarter. Wealthquest Corp now owns 2,403 shares of the enterprise software provider's stock valued at $354,000 after purchasing an additional 269 shares during the last quarter. 42.44% of the stock is owned by hedge funds and other institutional investors.

Key Headlines 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.

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