Scotiabank Weighs in on Oracle's FY2027 Earnings (NYSE:ORCL)

Key Points

• Scotiabank raised its FY2027 EPS estimate for Oracle to $6.49 from $6.47 and kept an Overweight rating, slightly above the broader consensus of $6.32 per share.
• Oracle recently beat fiscal Q4 expectations, reporting adjusted EPS of $2.11 on revenue of $19.18 billion, with revenue up 20.6% year over year and cloud infrastructure revenue jumping 93%.
• Despite the strong results, Oracle shares fell after management said AI-related capex will be much higher than expected, with FY2027 spending potentially reaching $95 billion and plans to raise additional financing raising concerns about leverage and dilution.

Oracle Corporation (NYSE:ORCL - Free Report) - Analysts at Scotiabank raised their FY2027 earnings per share (EPS) estimates for shares of Oracle in a research note issued to investors on Thursday, June 11th. Scotiabank analyst P. Colville now anticipates that the enterprise software provider will post earnings of $6.49 per share for the year, up from their prior forecast of $6.47. Scotiabank has a "Overweight" rating on the stock. The consensus estimate for Oracle's current full-year earnings is $6.32 per share.

Oracle (NYSE:ORCL - Get Free Report) last announced its earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share for the quarter, beating the consensus estimate of $1.96 by $0.15. The firm had revenue of $19.18 billion for the quarter, compared to the consensus estimate of $19.10 billion. Oracle had a return on equity of 56.43% and a net margin of 25.37%.The firm's revenue for the quarter was up 20.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.70 EPS. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS.

Several other brokerages also recently weighed in on ORCL. Stifel Nicolaus cut their target price on Oracle from $275.00 to $220.00 and set a "buy" rating on the stock in a research note on Wednesday, March 11th. Weiss Ratings raised Oracle from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, May 29th. Arete Research set a $255.00 target price on Oracle and gave the company a "buy" rating in a research note on Thursday, May 7th. Robert W. Baird cut their target price on Oracle from $300.00 to $200.00 and set an "outperform" rating on the stock in a research note on Tuesday, March 10th. Finally, TD Cowen lifted their target price on Oracle from $250.00 to $300.00 and gave the company a "buy" rating in a research note on Monday, June 8th. Three analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $268.27.

Oracle Stock Down 0.1%

Shares of Oracle stock opened at $184.01 on Monday. The business's fifty day moving average price is $184.68 and its two-hundred day moving average price is $177.77. The company has a debt-to-equity ratio of 2.84, a current ratio of 1.12 and a quick ratio of 1.35. The company has a market capitalization of $529.21 billion, a P/E ratio of 31.56, a PEG ratio of 1.18 and a beta of 1.65. Oracle has a 1-year low of $134.57 and a 1-year high of $345.72.

Hedge Funds Weigh In On Oracle

Hedge funds have recently modified their holdings of the stock. HFM Investment Advisors LLC grew its holdings in shares of Oracle by 290.9% in the 4th quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider's stock worth $25,000 after acquiring an additional 96 shares during the last quarter. Basepoint Wealth LLC acquired a new position in shares of Oracle in the 4th quarter worth $26,000. FSA Wealth Management LLC acquired a new position in shares of Oracle in the 3rd quarter worth $28,000. Osbon Capital Management LLC acquired a new position in shares of Oracle in the 4th quarter worth $28,000. Finally, Joseph Group Capital Management acquired a new position in shares of Oracle in the 4th quarter worth $29,000. 42.44% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Oracle

In other news, EVP Stuart Levey sold 15,000 shares of the business's stock in a transaction 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 owned 3,429 shares of the company's stock, valued at approximately $604,155.51. The trade was a 81.39% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 40.90% of the company's stock.

Oracle Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Friday, July 10th will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Friday, July 10th. Oracle's payout ratio is currently 34.31%.

Key Stories Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle beat fiscal Q4 estimates, with adjusted EPS of $2.11 and revenue of $19.18 billion, while cloud infrastructure revenue jumped 93% year over year and the company cited a record $638 billion remaining performance obligation, signaling strong demand for its AI and cloud services.
• Positive Sentiment: The U.S. Office of Personnel Management awarded Oracle a $395.8 million federal HR modernization contract, expanding Oracle’s government cloud footprint and adding a new revenue stream tied to more than 2 million federal employees. Article Title
• Positive Sentiment: Several recent analyst notes remained bullish, with firms like Guggenheim, Piper Sandler, BMO Capital Markets, and Cantor Fitzgerald reiterating constructive ratings and higher price targets, suggesting Wall Street still sees upside despite the selloff.
• Neutral Sentiment: Zacks noted that the broader earnings revisions trend for 2026 has been improving, especially in Technology, which may support sentiment for Oracle and other software/cloud names.
• Negative Sentiment: Oracle’s stock fell sharply because management said AI-related capital expenditures will be far higher than expected, with FY2027 capex potentially reaching $95 billion and plans to raise about $40 billion more through debt and equity financing, raising concerns about dilution, leverage, and free cash flow.
• Negative Sentiment: Investors also reacted to warnings that margins may step down as Oracle ramps data-center buildout, while a cyber issue in PeopleSoft and reports of active exploitation added a small layer of operational risk. Article Title

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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