Oracle (NYSE:ORCL) Announces Earnings Results

Key Points

• Oracle beat earnings expectations for the quarter, reporting $2.11 in EPS versus analysts’ estimate of $1.96. Revenue also came in slightly ahead of forecasts at $19.18 billion.
• The stock traded lower after the report, falling 2.3% to about $201.04 on heavy volume, despite Oracle’s strong profitability metrics and large market cap.
• Investor focus remains on AI and cloud growth, with recent commentary highlighting strong demand and a large AI backlog, while concerns persist that higher AI-related capital spending could pressure free cash flow and margins.

Oracle (NYSE:ORCL - Get Free Report) released its earnings results on Wednesday. The enterprise software provider reported $2.11 EPS for the quarter, beating analysts' consensus estimates of $1.96 by $0.15, FiscalAI reports. Oracle had a return on equity of 62.70% and a net margin of 25.30%.The company had revenue of $19.18 billion during the quarter, compared to the consensus estimate of $19.10 billion.

Oracle Trading Down 2.3%

Shares of NYSE ORCL traded down $4.77 during midday trading on Wednesday, hitting $201.04. The stock had a trading volume of 36,814,368 shares, compared to its average volume of 26,965,176. The company has a market capitalization of $578.21 billion, a price-to-earnings ratio of 36.09, a PEG ratio of 1.99 and a beta of 1.65. Oracle has a 1-year low of $134.57 and a 1-year high of $345.72. 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 company has a fifty day moving average price of $181.92 and a 200 day moving average price of $178.05.

Oracle News Summary

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle won a U.S. government contract to provide HR software across federal agencies, adding another enterprise/government revenue stream and reinforcing its software franchise. Reuters article on U.S. government contract
• Positive Sentiment: Several analysts remain constructive ahead of earnings, citing accelerating cloud infrastructure demand, a large AI-related backlog, and potential for stronger-than-expected results and guidance. Benzinga analyst revisions article
• Positive Sentiment: Oracle was named a Leader in Gartner’s 2026 Magic Quadrant for Talent Acquisition suites, highlighting strength in its Fusion Cloud HCM product line. PR Newswire Gartner recognition
• Neutral Sentiment: Market commentary and options data suggest traders expect a sizable post-earnings move, but the direction depends on whether Oracle can prove AI demand is translating into profitable growth. Yahoo Finance options article
• Neutral Sentiment: Pre-earnings coverage repeatedly notes strong expectations for revenue and EPS, but also emphasizes that Oracle’s stock has already rallied sharply on AI optimism, limiting room for disappointment. MarketWatch preview
• Negative Sentiment: Investors are worried Oracle may announce another big jump in capital expenditures to fund AI infrastructure, which could keep free cash flow negative and pressure margins. Barchart spending surge article
• Negative Sentiment: The broader AI trade has weakened, and Oracle has sold off ahead of earnings as investors question whether heavy debt-funded AI expansion is sustainable. Invezz premarket weakness article

Analyst Ratings Changes

A number of brokerages have recently weighed in on ORCL. DA Davidson raised their price target on Oracle from $180.00 to $200.00 and gave the company a "buy" rating in a research report on Wednesday, March 11th. Oppenheimer raised their price target on Oracle from $235.00 to $275.00 and gave the company an "outperform" rating in a research report on Monday. UBS Group raised their price target on Oracle from $250.00 to $285.00 and gave the company a "buy" rating in a research report on Tuesday, June 2nd. Piper Sandler dropped their price target on Oracle from $240.00 to $210.00 and set an "overweight" rating for the company in a research report on Wednesday, March 11th. Finally, Royal Bank Of Canada raised their price target on Oracle from $160.00 to $190.00 and gave the company a "sector perform" rating in a research report on Thursday, June 4th. Three analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $273.08.

Insider Buying and Selling at Oracle

In other news, EVP Stuart Levey sold 15,000 shares of Oracle stock in a transaction dated 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 transaction, the executive vice president directly owned 3,429 shares of the company's stock, valued at $604,155.51. The trade was a 81.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Oracle

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Mcguire Capital Advisors Inc. acquired a new position in Oracle during the 4th quarter worth approximately $47,000. Claris Financial LLC acquired a new position in Oracle during the 4th quarter worth approximately $304,000. Corient Private Wealth LLC lifted its position in Oracle by 22.2% during the 4th quarter. Corient Private Wealth LLC now owns 1,166,526 shares of the enterprise software provider's stock worth $208,274,000 after acquiring an additional 212,230 shares in the last quarter. Alpine Woods Capital Investors LLC lifted its position in Oracle by 185.6% during the 4th quarter. Alpine Woods Capital Investors LLC now owns 5,783 shares of the enterprise software provider's stock worth $1,127,000 after acquiring an additional 3,758 shares in the last quarter. Finally, Strive Financial Group LLC acquired a new position in Oracle during the 4th quarter worth approximately $2,801,000. 42.44% of the stock is owned by institutional investors and hedge funds.

About Oracle

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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