Scotiabank Brokers Decrease Earnings Estimates for Oracle

Key Points

• Scotiabank lowered its FY2027 EPS estimate for Oracle to $6.63 from $6.73, while maintaining a “Sector Outperform” rating and a $205 price target.
• Oracle’s latest quarterly results beat expectations: EPS was $1.92 versus a $1.74 consensus, and revenue rose 29.6% year over year to $19.34 billion.
• Analyst sentiment remains broadly positive: Oracle has a “Moderate Buy” consensus rating and an average price target of $249.27.

Oracle Corporation (NYSE:ORCL - Free Report) - Stock analysts at Scotiabank dropped their FY2027 earnings per share (EPS) estimates for Oracle in a research report issued on Monday, November 2nd. Scotiabank analyst P. Colville now expects that the enterprise software provider will post earnings of $6.63 per share for the year, down from their previous estimate of $6.73. Scotiabank currently has a "Sector Outperform" rating and a $205.00 target price on the stock. The consensus estimate for Oracle's current full-year earnings is $6.72 per share.

Several other analysts have also recently weighed in on the stock. Cantor Fitzgerald restated an "overweight" rating and set a $284.00 price objective on shares of Oracle in a research report on Thursday, October 22nd. Citigroup reiterated a "market outperform" rating on shares of Oracle in a research report on Thursday, October 29th. UBS Group upped their target price on shares of Oracle from $245.00 to $250.00 and gave the stock a "buy" rating in a research report on Friday, September 11th. Sanford C. Bernstein reissued an "outperform" rating on shares of Oracle in a research note on Tuesday, October 27th. Finally, Stephens upgraded Oracle from an "equal weight" rating to an "overweight" rating and raised their price target for the company from $185.00 to $213.00 in a research report on Monday. One analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating, six have given a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, Oracle currently has a consensus rating of "Moderate Buy" and an average price target of $249.27.

Oracle Price Performance

ORCL stock opened at $114.88 on Friday. The firm has a 50 day simple moving average of $139.83 and a two-hundred day simple moving average of $155.72. The stock has a market cap of $347.38 billion, a PE ratio of 18.01, a P/E/G ratio of 0.87 and a beta of 1.79. Oracle has a one year low of $111.66 and a one year high of $250.25. The company has a debt-to-equity ratio of 1.89, a current ratio of 1.17 and a quick ratio of 1.17.

Oracle (NYSE:ORCL - Get Free Report) last announced its earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share 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 for the quarter, compared to the consensus estimate of $19.13 billion. During the same period last year, the firm posted $1.47 earnings per share. 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.

Oracle Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, October 23rd. Shareholders of record on Friday, October 9th were paid a dividend of $0.50 per share. The ex-dividend date of this dividend was Friday, October 9th. This represents a $2.00 annualized dividend and a dividend yield of 1.7%. Oracle's dividend payout ratio (DPR) is 31.35%.

Insiders Place Their Bets

In other news, EVP Maria Smith sold 2,631 shares of the company's stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $151.70, for a total value of $399,122.70. Following the completion of the sale, the executive vice president owned 64,357 shares of the company's stock, valued at approximately $9,762,956.90. This represents a 3.93% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Stephen H. Rusckowski bought 25,000 shares of Oracle stock in a transaction that occurred on Tuesday, September 29th. The shares were acquired at an average cost of $139.35 per share, for a total transaction of $3,483,750.00. Following the acquisition, the director owned 25,390 shares in the company, valued at $3,538,096.50. The trade was a 6,410.26% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders have sold 36,075 shares of company stock valued at $5,342,123. 38.40% of the stock is currently owned by corporate insiders.

Institutional Trading of Oracle

Hedge funds have recently added to or reduced their stakes in the business. Pilgrim Partners Asia Pte Ltd purchased a new stake in shares of Oracle during the third quarter valued at $25,000. Foresight Capital Management Advisors Inc. purchased a new position in Oracle in the 3rd quarter worth about $26,000. Persistent Asset Partners Ltd purchased a new position in Oracle in the 2nd quarter worth about $29,000. North Point Portfolio Managers Corp OH purchased a new position in Oracle in the 3rd quarter worth about $27,000. Finally, Markowski Investments bought a new stake in Oracle during the 2nd quarter valued at about $32,000. 42.44% of the stock is owned by institutional investors.

Key Headlines Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s growth outlook remains a potential support: the company maintains a $90 billion FY2027 revenue target and projects at least $225 billion by 2030, with cloud infrastructure growth and AI demand underpinning its expansion plans. Article: The Oracle Selloff Deepens Despite Strong Long-Term Growth Outlook
• Positive Sentiment: Scotiabank trimmed its FY2027 EPS estimate to $6.63 from $6.73 but kept its “Sector Outperform” rating and $205 price target, signaling continued confidence despite the forecast cut. Article: Oracle Analyst Estimate Revision
• Neutral Sentiment: Oracle’s stock has lagged the broader market despite cloud growth, higher guidance, and AI contracts, leaving investors focused on whether future cash flow can justify the company’s AI investment and valuation. Article: Oracle Stock: Analyst Estimates & Ratings
• Negative Sentiment: Political uncertainty is weighing on AI infrastructure stocks. Investors fear increased scrutiny or local restrictions could delay data-center construction, including in states expected to account for a significant share of future U.S. computing capacity. Article: Why Oracle Stock Is Sinking Today
• Negative Sentiment: Oracle reportedly scrapped a five-year, roughly $7 billion AI-chip leasing arrangement with Tencent after U.S. government pressure. The lost deal raises concerns about regulatory limits on serving China-linked AI customers and the potential for similar restrictions elsewhere. Article: Oracle’s $7 Billion AI Deal Collapses
• Negative Sentiment: Investors are also scrutinizing Oracle’s funding needs: a large debt-and-equity financing plan has revived concerns about dilution, leverage, and the company’s path back to positive free cash flow. Reports cite about $169 billion in debt. Article: Oracle vs. Alphabet

About Oracle

Oracle Corporation is a technology company that develops and provides database software, cloud services, and enterprise applications. Its products help organizations manage data, run business operations, and build and deploy applications.

Oracle's offerings include Oracle Database, Oracle Cloud Infrastructure, and cloud-based applications for functions such as finance, human resources, supply chain management, and customer experience. The company also provides software support, consulting, and related services.

Founded in 1977 as Software Development Laboratories, Oracle serves businesses and public-sector organizations across geographies worldwide.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.