Research Analysts Set Expectations for Oracle Q2 Earnings

Key Points

• KeyCorp lowered Oracle’s Q2 FY2027 EPS estimate to $1.57 from $1.62, while projecting $6.82 EPS for FY2027 and $8.95 for FY2028.
• Oracle’s latest quarterly results beat expectations, with EPS of $1.92 versus the $1.74 consensus and revenue of $19.34 billion, up 29.6% year over year.
• Analyst sentiment remains favorable: Oracle carries a “Moderate Buy” consensus rating and a $252.58 average price target, while the company also declared a quarterly dividend of $0.50 per share.

Oracle Corporation (NYSE:ORCL - Free Report) - Stock analysts at KeyCorp decreased their Q2 2027 earnings per share (EPS) estimates for shares of Oracle in a research note issued on Thursday, September 10th. KeyCorp analyst J. Ader now anticipates that the enterprise software provider will post earnings per share of $1.57 for the quarter, down from their prior forecast of $1.62. The consensus estimate for Oracle's current full-year earnings is $6.62 per share. KeyCorp also issued estimates for Oracle's Q3 2027 earnings at $1.73 EPS, Q4 2027 earnings at $1.91 EPS, FY2027 earnings at $6.82 EPS and FY2028 earnings at $8.95 EPS.

Oracle (NYSE:ORCL - Get Free Report) last announced its quarterly earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 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 48.85%. The business had revenue of $19.34 billion during the quarter, compared to analyst estimates of $19.13 billion. During the same quarter in the previous year, the business posted $1.47 EPS. Oracle's quarterly revenue was up 29.6% on a year-over-year basis. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS.

ORCL has been the subject of several other reports. Guggenheim reissued a "buy" rating and issued a $400.00 price target on shares of Oracle in a report on Tuesday, September 8th. BTIG Research reissued a "buy" rating and set a $400.00 price objective on shares of Oracle in a report on Friday, June 5th. TD Cowen reiterated a "buy" rating and set a $240.00 target price on shares of Oracle in a research report on Wednesday, September 9th. Freedom Broker decreased their price target on shares of Oracle from $210.00 to $205.00 and set a "buy" rating on the stock in a report on Monday. Finally, Jefferies Financial Group cut their target price on shares of Oracle from $320.00 to $290.00 and set a "buy" rating for the company in a research report on Wednesday, September 2nd. Two analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $252.58.

Oracle Price Performance

ORCL opened at $143.20 on Thursday. The company has a market capitalization of $433.00 billion, a price-to-earnings ratio of 22.45, a P/E/G ratio of 1.01 and a beta of 1.74. Oracle has a 1 year low of $114.50 and a 1 year high of $329.50. The company has a debt-to-equity ratio of 1.89, a current ratio of 1.17 and a quick ratio of 1.12. The firm's fifty day moving average price is $141.12 and its two-hundred day moving average price is $160.41.

Oracle Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 9th will be issued a $0.50 dividend. The ex-dividend date is Friday, October 9th. This represents a $2.00 annualized dividend and a dividend yield of 1.4%. Oracle's payout ratio is currently 31.35%.

Insider Activity at Oracle

In other news, Vice Chairman Jeffrey Henley sold 400,000 shares of the business's stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $159.16, for a total value of $63,664,000.00. Following the completion of the sale, the insider owned 400,000 shares of the company's stock, valued at approximately $63,664,000. The trade was a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 40.90% of the company's stock.

Institutional Trading of Oracle

Institutional investors have recently made changes to their positions in the stock. Sherman Asset Management Inc. grew its stake in Oracle by 5.5% during the first quarter. Sherman Asset Management Inc. now owns 1,054 shares of the enterprise software provider's stock worth $155,000 after buying an additional 55 shares during the period. Southern Capital Advisors LLC lifted its holdings in shares of Oracle by 1.3% during the 1st quarter. Southern Capital Advisors LLC now owns 4,446 shares of the enterprise software provider's stock valued at $654,000 after acquiring an additional 57 shares in the last quarter. Global Financial Private Client LLC lifted its holdings in shares of Oracle by 0.8% during the 1st quarter. Global Financial Private Client LLC now owns 7,836 shares of the enterprise software provider's stock valued at $1,153,000 after acquiring an additional 59 shares in the last quarter. Key Financial Inc boosted its position in Oracle by 0.4% during the 1st quarter. Key Financial Inc now owns 14,203 shares of the enterprise software provider's stock worth $2,089,000 after purchasing an additional 62 shares during the period. Finally, Gould Asset Management LLC CA increased its holdings in Oracle by 2.0% in the 1st quarter. Gould Asset Management LLC CA now owns 3,172 shares of the enterprise software provider's stock valued at $467,000 after purchasing an additional 62 shares in the last quarter. Hedge funds and other institutional investors own 42.44% of the company's stock.

Key Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Analysts raised longer-term earnings forecasts. KeyCorp lifted its FY2027 EPS estimate to $6.82 from $6.50 and its FY2028 estimate to $8.95 from $8.70. It also raised Q3 and Q4 FY2027 forecasts, partly offset by a small reduction to its Q2 estimate. The upward revisions reinforce expectations for accelerating profitability. KeyCorp Oracle earnings estimates
• Positive Sentiment: Recent results highlighted strong operating momentum. Oracle exceeded quarterly EPS and revenue expectations, with revenue up nearly 30% year over year. Cloud infrastructure revenue, a $664 billion remaining performance obligation, and accelerating AI demand support the bullish case for future growth. Oracle beats Q1 estimates
• Positive Sentiment: Restructuring may help finance the AI buildout. Reported job cuts and broader cost controls could improve efficiency and redirect funds toward data centers and AI infrastructure. Investors appear to be treating the restructuring as a way to manage Oracle’s spending requirements rather than solely as a sign of weakening demand. Oracle restructuring helps finance AI spending
• Neutral Sentiment: OpenAI-related developments are supporting sentiment but add concentration risk. Reports of potential new financing at a valuation above $1.2 trillion may reassure investors that demand for AI compute remains strong, benefiting infrastructure suppliers such as Oracle. Still, Oracle’s close relationship with OpenAI means any change in that customer’s funding, strategy, or infrastructure plans could affect expectations. OpenAI valuation could lift Oracle
• Negative Sentiment: Cash flow and leverage remain the main overhangs. Oracle is investing heavily in AI data centers and reportedly considering substantial financing while continuing to burn cash on infrastructure. Rising borrowing costs could pressure margins and shareholder returns, particularly if AI demand or customer utilization slows. Oracle financing plan and debt risks

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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