Oracle (NYSE:ORCL) Issues Q1 2027 Earnings Guidance

Key Points

• Oracle raised its Q1 2027 guidance, forecasting EPS of 1.72 to 1.76 versus the 1.61 consensus estimate. It also guided revenue to $19.0 billion to $19.3 billion, roughly in line with expectations.
• The company’s prior quarter beat estimates, reporting $2.11 EPS on revenue of $19.18 billion, both above analyst forecasts. Oracle also reiterated FY 2027 EPS guidance of 8.05.
• Shares fell 2.3% in mid-day trading after the update, despite generally positive analyst sentiment and recent news that Oracle won a U.S. government HR software contract. Investors remain focused on whether AI-related growth can justify heavy spending and valuation.

Oracle (NYSE:ORCL - Get Free Report) updated its first quarter 2027 earnings guidance on Wednesday. The company provided EPS guidance of 1.720-1.760 for the period, compared to the consensus EPS estimate of 1.610. The company issued revenue guidance of $19.0 billion-$19.3 billion, compared to the consensus revenue estimate of $19.0 billion. Oracle also updated its FY 2027 guidance to 8.050-8.050 EPS.

Analyst Ratings Changes

Several equities analysts recently commented on ORCL shares. Royal Bank Of Canada upped their price target on Oracle from $160.00 to $190.00 and gave the stock a "sector perform" rating in a research note on Thursday, June 4th. Jefferies Financial Group dropped their price target on Oracle from $400.00 to $320.00 and set a "buy" rating for the company in a research note on Thursday, March 5th. Barclays restated an "overweight" rating on shares of Oracle in a research note on Monday. Robert W. Baird dropped their price target on Oracle from $300.00 to $200.00 and set an "outperform" rating for the company in a research note on Tuesday, March 10th. Finally, Morgan Stanley dropped their price target on Oracle from $213.00 to $207.00 and set an "equal weight" rating for the company in a research note on Thursday, April 23rd. Three research analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Oracle currently has a consensus rating of "Moderate Buy" and a consensus price target of $273.08.

Oracle Stock Down 2.3%

NYSE ORCL traded down $4.77 during mid-day trading on Wednesday, reaching $201.04. 38,491,373 shares of the company's stock traded hands, compared to its average volume of 27,048,590. Oracle has a 1-year low of $134.57 and a 1-year high of $345.72. The company has a fifty day simple moving average of $181.92 and a 200-day simple moving average of $178.05. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 3.66. The company has a market cap of $578.21 billion, a price-to-earnings ratio of 36.09, a P/E/G ratio of 1.99 and a beta of 1.65.

Oracle (NYSE:ORCL - Get Free Report) last issued its earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, topping the consensus estimate of $1.96 by $0.15. The company had revenue of $19.18 billion during the quarter, compared to analyst estimates of $19.10 billion. Oracle had a return on equity of 62.70% and a net margin of 25.30%.Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. As a group, equities research analysts expect that Oracle will post 6.09 EPS for the current year.

Insider Buying and Selling

In related news, EVP Stuart Levey sold 15,000 shares of the firm's stock in a transaction that occurred on 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 sale, the executive vice president directly owned 3,429 shares in the company, valued at $604,155.51. This trade represents a 81.39% decrease in their position. The transaction was disclosed in a legal 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. 40.90% of the stock is currently owned by corporate insiders.

Oracle News Roundup

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

Institutional Investors Weigh In On Oracle

Several large investors have recently modified their holdings of ORCL. FIL Ltd boosted its position in Oracle by 1,605.7% during the fourth quarter. FIL Ltd now owns 3,976,441 shares of the enterprise software provider's stock valued at $775,048,000 after purchasing an additional 3,743,314 shares during the last quarter. State Street Corp lifted its holdings in shares of Oracle by 4.4% during the 4th quarter. State Street Corp now owns 76,527,759 shares of the enterprise software provider's stock valued at $14,916,026,000 after buying an additional 3,216,915 shares during the last quarter. Amundi lifted its holdings in shares of Oracle by 32.9% during the 3rd quarter. Amundi now owns 9,636,090 shares of the enterprise software provider's stock valued at $2,809,609,000 after buying an additional 2,385,556 shares during the last quarter. Bank of Nova Scotia lifted its holdings in shares of Oracle by 190.4% during the 4th quarter. Bank of Nova Scotia now owns 2,277,362 shares of the enterprise software provider's stock valued at $443,879,000 after buying an additional 1,493,096 shares during the last quarter. Finally, Bridgewater Associates LP lifted its holdings in shares of Oracle by 361.1% during the 4th quarter. Bridgewater Associates LP now owns 1,873,481 shares of the enterprise software provider's stock valued at $365,160,000 after buying an additional 1,467,202 shares during the last quarter. 42.44% of the stock is owned by institutional investors.

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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