Oracle (NYSE:ORCL) Updates FY 2027 Earnings Guidance

Key Points

• Oracle raised its FY 2027 outlook, guiding for EPS of 8.05 and revenue of $90.0 billion, both above Wall Street estimates. It also set Q1 2027 EPS guidance at 1.72 to 1.76.
• The company’s recent results were solid, with quarterly EPS of $2.11 and revenue of $19.18 billion, both topping analyst expectations. Oracle also posted a strong net margin of 25.3% and return on equity of 62.7%.
• Shares fell despite the upbeat guidance, with Oracle stock down 2.3% in midday trading. Investors are weighing optimism around cloud and AI demand against concerns about heavy spending, debt, and post-earnings volatility.

Oracle (NYSE:ORCL - Get Free Report) issued an update on its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 8.050-8.050 for the period, compared to the consensus earnings per share estimate of 7.710. The company issued revenue guidance of $90.0 billion-$90.0 billion, compared to the consensus revenue estimate of $88.6 billion. Oracle also updated its Q1 2027 guidance to 1.720-1.760 EPS.

Oracle Trading Down 2.3%

ORCL traded down $4.77 during mid-day trading on Wednesday, hitting $201.04. The stock had a trading volume of 38,491,373 shares, compared to its average volume of 27,048,590. The stock's fifty day simple moving average is $181.92 and its 200-day simple moving average is $178.05. The firm has a market capitalization of $578.21 billion, a price-to-earnings ratio of 36.09, a price-to-earnings-growth 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 debt-to-equity ratio of 3.66, a current ratio of 1.35 and a quick ratio of 1.35.

Oracle (NYSE:ORCL - Get Free Report) last released its quarterly earnings data on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, beating analysts' consensus estimates of $1.96 by $0.15. The business had revenue of $19.18 billion during the quarter, compared to analysts' expectations of $19.10 billion. Oracle had a net margin of 25.30% and a return on equity of 62.70%. 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, research analysts forecast that Oracle will post 6.09 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research firms have recently commented on ORCL. Guggenheim reaffirmed a "buy" rating on shares of Oracle in a research report on Friday, June 5th. DA Davidson increased their target price on Oracle from $180.00 to $200.00 and gave the stock a "buy" rating in a research note on Wednesday, March 11th. Mizuho set a $320.00 price target on shares of Oracle in a research note on Wednesday, June 3rd. Oppenheimer upped their price target on shares of Oracle from $235.00 to $275.00 and gave the company an "outperform" rating in a report on Monday. Finally, Morgan Stanley lowered their price objective on shares of Oracle from $213.00 to $207.00 and set an "equal weight" rating for the company in a research report on Thursday, April 23rd. Three investment analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Oracle currently has an average rating of "Moderate Buy" and a consensus price target of $273.08.

Insider Buying and Selling

In other Oracle news, EVP Stuart Levey sold 15,000 shares of the company'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 transaction of $2,642,850.00. Following the completion of the transaction, the executive vice president owned 3,429 shares of the company's stock, valued at $604,155.51. This represents a 81.39% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 40.90% of the company's stock.

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 Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. FIL Ltd increased its stake in Oracle by 1,605.7% in the 4th quarter. FIL Ltd now owns 3,976,441 shares of the enterprise software provider's stock valued at $775,048,000 after buying an additional 3,743,314 shares during the last quarter. State Street Corp boosted its stake 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 worth $14,916,026,000 after buying an additional 3,216,915 shares during the last quarter. Amundi grew its holdings in shares of Oracle by 32.9% in the 3rd quarter. Amundi now owns 9,636,090 shares of the enterprise software provider's stock valued at $2,809,609,000 after acquiring an additional 2,385,556 shares in the last quarter. Bank of Nova Scotia grew its holdings in shares of Oracle by 190.4% in 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 acquiring an additional 1,493,096 shares in the last quarter. Finally, Bridgewater Associates LP increased its position in shares of Oracle by 361.1% in the fourth quarter. Bridgewater Associates LP now owns 1,873,481 shares of the enterprise software provider's stock valued at $365,160,000 after acquiring an additional 1,467,202 shares during the last quarter. Institutional investors own 42.44% of the company's stock.

Oracle Company Profile

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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