Scotiabank Has Positive Outlook for Oracle FY2027 Earnings

Key Points

• Scotiabank raised Oracle’s FY2027 EPS estimate to $6.73 from $6.49 and maintained a “Sector Outperform” rating with a $215 price target, above the current consensus estimate of $6.67.
• Oracle recently exceeded quarterly expectations, reporting $1.92 in EPS versus the $1.74 consensus and $19.34 billion in revenue, up 29.6% year over year.
• Analyst sentiment remains broadly positive, with Oracle holding a “Moderate Buy” consensus rating and an average price target of $252.58, although concerns remain about heavy AI infrastructure spending, data-center debt and negative free cash flow.

Oracle Corporation (NYSE:ORCL - Free Report) - Research analysts at Scotiabank boosted their FY2027 earnings per share (EPS) estimates for shares of Oracle in a report released on Thursday, September 17th. Scotiabank analyst P. Colville now forecasts that the enterprise software provider will earn $6.73 per share for the year, up from their previous estimate of $6.49. Scotiabank currently has a "Sector Outperform" rating and a $215.00 target price on the stock. The consensus estimate for Oracle's current full-year earnings is $6.67 per share.

Oracle (NYSE:ORCL - Get Free Report) last released its earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share for the quarter, topping analysts' consensus estimates of $1.74 by $0.18. The company 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 48.85% and a net margin of 26.36%.Oracle's quarterly revenue was up 29.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $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.

A number of other equities research analysts have also recently issued reports on the stock. Bank of America upped their price objective on shares of Oracle from $200.00 to $240.00 and gave the company a "buy" rating in a research note on Tuesday, June 9th. Stifel Nicolaus lowered their price target on shares of Oracle from $220.00 to $200.00 and set a "buy" rating for the company in a research note on Friday, September 11th. BTIG Research restated a "buy" rating and set a $400.00 price target on shares of Oracle in a research report on Friday, June 5th. Mizuho set a $320.00 price objective on Oracle in a research note on Wednesday, June 3rd. Finally, Guggenheim reissued a "buy" rating and issued a $400.00 target price on shares of Oracle in a research note on Tuesday, September 8th. Two analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Oracle currently has an average rating of "Moderate Buy" and an average price target of $252.58.

Oracle Stock Down 0.0%

Shares of NYSE ORCL opened at $147.60 on Monday. The stock has a market capitalization of $446.30 billion, a P/E ratio of 23.13, a PEG ratio of 1.05 and a beta of 1.74. Oracle has a one year low of $114.50 and a one year high of $329.50. The firm's 50 day simple moving average is $141.39 and its two-hundred day simple moving average is $160.44. The company has a debt-to-equity ratio of 1.89, a current ratio of 1.17 and a quick ratio of 1.17.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Security National Bank of Sioux City Iowa IA lifted its stake in shares of Oracle by 42.1% in the 2nd quarter. Security National Bank of Sioux City Iowa IA now owns 31,833 shares of the enterprise software provider's stock valued at $4,665,000 after purchasing an additional 9,424 shares during the period. Bullseye Investment Management LLC purchased a new stake in Oracle in the second quarter worth $1,676,000. Bouchey Financial Group Ltd. bought a new position in Oracle in the second quarter worth $229,000. Capstone Financial Advisors Inc. raised its holdings in Oracle by 3.6% in the second quarter. Capstone Financial Advisors Inc. now owns 1,809 shares of the enterprise software provider's stock worth $265,000 after purchasing an additional 63 shares in the last quarter. Finally, Van Hulzen Asset Management LLC lifted its position in Oracle by 0.7% during the second quarter. Van Hulzen Asset Management LLC now owns 11,815 shares of the enterprise software provider's stock valued at $1,731,000 after buying an additional 81 shares during the period. Institutional investors own 42.44% of the company's stock.

Insider Buying and Selling at Oracle

In related news, Vice Chairman Jeffrey Henley sold 400,000 shares of the business's stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total transaction of $63,664,000.00. Following the transaction, the insider owned 400,000 shares in the company, valued at $63,664,000. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael D. Sicilia sold 10,882 shares of the firm's stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $139.94, for a total transaction of $1,522,827.08. Following the completion of the sale, the chief executive officer owned 149,084 shares of the company's stock, valued at $20,862,814.96. This trade represents a 6.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is currently owned by corporate insiders.

Oracle Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders 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 yield of 1.4%. Oracle's dividend payout ratio is 31.35%.

Oracle News Summary

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s reported approximately $664 billion cloud backlog and roughly $30 billion in AI-related deals continue to support expectations for strong future revenue growth. OpenAI-related financing and demand have also helped reinforce the bullish case for Oracle’s infrastructure business. Oracle AI backlog and upside article
• Positive Sentiment: Oracle recently exceeded quarterly expectations, reporting $1.92 in earnings per share versus a $1.74 consensus estimate and revenue growth of nearly 30% year over year. Some analysts have raised longer-term earnings estimates and maintain substantially higher price targets. Barron's Oracle stock analysis
• Neutral Sentiment: Technical indicators remain mixed. ORCL recently moved above its 20-day moving average and is building a potential base near its 50-day average, but it remains below its 200-day average, reflecting continued volatility and uncertainty. Oracle moving average analysis
• Negative Sentiment: Investors are increasingly concerned about Oracle’s approximately $18 billion of data-center debt and the possibility that local opposition in New Mexico could delay permits or construction. Delays could postpone revenue generation while increasing financing and carrying costs. Financial Times Oracle data center debt article
• Negative Sentiment: The AI buildout is consuming substantial capital and leaving free cash flow deeply negative. Reports highlighting borrowing, leases and potential circular financing among Oracle, OpenAI, CoreWeave and Nvidia have increased concern that growth may not translate into cash generation quickly enough, particularly with interest rates elevated. Oracle and CoreWeave AI financing risks
• Negative Sentiment: Oracle has begun another round of layoffs while simultaneously increasing infrastructure spending. Although restructuring may reduce costs, the cuts raise questions about execution and can signal pressure to fund the AI expansion internally. Oracle layoffs and severance article

About Oracle

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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