Oracle (NYSE:ORCL) Updates FY 2027 Earnings Guidance

Key Points

• Oracle raised its FY 2027 outlook, guiding to EPS of $8.10 and revenue of at least $90 billion, above consensus estimates of $7.75 EPS and $89.5 billion revenue. Q2 FY 2027 EPS guidance was set at $1.85–$1.93.
• Analysts remain broadly positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $257.86, despite recent target reductions from some firms.
• Investors remain concerned about Oracle’s planned $70 billion annual capital budget, which could increase debt and pressure cash flow as the company expands its AI and cloud infrastructure operations.

Oracle (NYSE:ORCL - Get Free Report) updated its FY 2027 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 8.100-8.100 for the period, compared to the consensus estimate of 7.750. The company issued revenue guidance of $90.0B-, compared to the consensus revenue estimate of $89.5 billion. Oracle also updated its Q2 2027 guidance to 1.850-1.930 EPS.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on ORCL. Piper Sandler upped their price target on Oracle from $210.00 to $225.00 and gave the company an "overweight" rating in a report on Thursday, June 11th. Jefferies Financial Group reduced their price target on shares of Oracle from $320.00 to $290.00 and set a "buy" rating for the company in a research note on Wednesday, September 2nd. Citigroup restated a "buy" rating on shares of Oracle in a report on Wednesday, August 26th. Sanford C. Bernstein reissued an "outperform" rating on shares of Oracle in a report on Wednesday, September 2nd. Finally, Moffett Nathanson set a $325.00 price objective on Oracle in a report on Thursday, June 11th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $257.86.

Oracle Price Performance

Shares of Oracle stock traded down $8.46 on Thursday, hitting $153.17. 46,987,067 shares of the company traded hands, compared to its average volume of 28,841,830. Oracle has a 52 week low of $114.50 and a 52 week high of $331.00. The business has a 50-day simple moving average of $140.63 and a 200 day simple moving average of $160.42. The company has a debt-to-equity ratio of 3.21, a quick ratio of 1.12 and a current ratio of 1.12. The stock has a market capitalization of $441.20 billion, a P/E ratio of 26.27, a price-to-earnings-growth ratio of 1.21 and a beta of 1.74.

Oracle (NYSE:ORCL - Get Free Report) last announced its quarterly earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.74 by $0.18. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The company had revenue of $19.34 billion for the quarter, compared to the consensus estimate of $19.13 billion. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. Research analysts expect that Oracle will post 6.5 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Vice Chairman Jeffrey Henley sold 400,000 shares of the stock in a transaction that occurred on 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 transaction, the insider owned 400,000 shares of the company's stock, valued at $63,664,000. This represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is owned by insiders.

Oracle News Roundup

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s roughly $638 billion backlog remains a significant growth catalyst. Wall Street expects approximately 28% revenue growth, while Bank of America forecasts infrastructure-as-a-service growth of 116% year over year. Oracle set to report as Street weighs capex risk against cloud growth
• Positive Sentiment: Options markets are pricing in an unusually large post-earnings move of about 11% to 12%, with call options generally more expensive than puts. That suggests some traders are positioned for a strong upside reaction if Oracle delivers a cloud-growth or guidance surprise. Oracle Stock Is Down 17% This Year, But Options Traders Bet on a Blowout
• Positive Sentiment: Several analysts remain constructive: Scotiabank retained an Outperform rating despite reducing its price target to $215, while other firms maintain targets well above the current share price. Oracle’s expanded AI-infrastructure work with Hewlett Packard Enterprise and new cloud-marketplace partnerships also support its strategic positioning.
• Neutral Sentiment: Investors are focused on the earnings release and management commentary, particularly cloud infrastructure growth, backlog conversion, data-center capacity additions, capital expenditures and free-cash-flow guidance. Options pricing indicates the report could produce one of the stock’s largest moves of the year. Here's How Much Traders Expect Oracle Stock to Move After Earnings
• Negative Sentiment: The stock is lower ahead of results because investors are concerned about Oracle’s planned $70 billion annual capital budget, compared with roughly $32 billion of cash generated by the business last year. The resulting financing needs, debt burden and potential cash-flow pressure have made the AI expansion look increasingly leveraged. Oracle Reports Thursday. Its Capital Budget Is More Than Twice the Cash Its Business Produces
• Negative Sentiment: Oracle has surrendered much of its prior AI-driven rally and remains well below its record high. Traders are questioning whether large contracts represent near-term, cash-generating demand or merely long-dated commitments that require substantial spending before producing returns. Rising Treasury yields and oil prices are adding broader pressure to high-growth technology shares.

Hedge Funds Weigh In On Oracle

Several institutional investors and hedge funds have recently bought and sold shares of ORCL. Schnieders Capital Management LLC. increased its stake in shares of Oracle by 19.2% during the second quarter. Schnieders Capital Management LLC. now owns 52,856 shares of the enterprise software provider's stock worth $11,556,000 after acquiring an additional 8,530 shares during the period. United Bank boosted its holdings in Oracle by 6.8% in the 2nd quarter. United Bank now owns 15,038 shares of the enterprise software provider's stock valued at $3,288,000 after purchasing an additional 963 shares in the last quarter. Brighton Jones LLC increased its position in Oracle by 189.3% during the 4th quarter. Brighton Jones LLC now owns 153,580 shares of the enterprise software provider's stock worth $25,593,000 after purchasing an additional 100,494 shares during the period. Revolve Wealth Partners LLC raised its stake in shares of Oracle by 8.1% during the 4th quarter. Revolve Wealth Partners LLC now owns 5,418 shares of the enterprise software provider's stock worth $903,000 after buying an additional 404 shares in the last quarter. Finally, Sivia Capital Partners LLC lifted its holdings in shares of Oracle by 21.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 4,348 shares of the enterprise software provider's stock valued at $951,000 after buying an additional 768 shares during the period. 42.44% of the stock is owned by hedge funds and other institutional investors.

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.

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.