Oracle (NYSE:ORCL) Updates FY 2027 Earnings Guidance

Oracle (NYSE:ORCL) 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 8.6%

ORCL stock opened at $184.03 on Friday. The company has a debt-to-equity ratio of 3.66, a quick ratio of 1.35 and a current ratio of 1.35. The company’s 50-day simple moving average is $183.90 and its 200 day simple moving average is $177.88. Oracle has a 52 week low of $134.57 and a 52 week high of $345.72. The company has a market capitalization of $529.27 billion, a PE ratio of 31.57, a price-to-earnings-growth ratio of 1.58 and a beta of 1.65.

Oracle (NYSE:ORCL) last released its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, beating the consensus estimate of $1.96 by $0.15. Oracle had a net margin of 25.37% and a return on equity of 62.74%. The business had revenue of $19.18 billion for the quarter, compared to the consensus estimate of $19.10 billion. During the same period in the prior year, the company posted $1.70 earnings per share. Oracle’s revenue was up 20.6% compared to the same quarter last year. 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, sell-side analysts anticipate that Oracle will post 6.33 earnings per share for the current year.

Oracle Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be paid a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Friday, July 10th. Oracle’s dividend payout ratio is presently 35.91%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. UBS Group increased their price objective on shares of Oracle from $250.00 to $285.00 and gave the stock a “buy” rating in a research note on Tuesday, June 2nd. Stifel Nicolaus reduced their price objective on shares of Oracle from $275.00 to $220.00 and set a “buy” rating on the stock in a research note on Wednesday, March 11th. Barclays increased their price objective on shares of Oracle from $240.00 to $250.00 and gave the stock an “overweight” rating in a research note on Thursday. Cantor Fitzgerald reiterated an “overweight” rating and set a $284.00 price objective on shares of Oracle in a research note on Thursday. Finally, Bank of America increased their price objective on shares of Oracle from $200.00 to $240.00 and gave the stock a “buy” rating in a research note on Tuesday. Three investment analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $268.27.

Insider Activity

In other Oracle news, EVP Stuart Levey sold 15,000 shares of the firm’s stock in a transaction that occurred on Thursday, April 16th. The shares were 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 in the company, valued at approximately $604,155.51. This trade represents a 81.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 40.90% of the company’s stock.

Key Headlines Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle beat fiscal Q4 earnings and revenue estimates, with revenue up 21% year over year and cloud infrastructure revenue up 93%, showing strong demand for its AI and cloud services.
• Positive Sentiment: The company raised FY2027 revenue and EPS guidance and reported a record $638 billion remaining performance obligation backlog, signaling substantial future demand.
• Positive Sentiment: Oracle also won a $395.8 million U.S. Office of Personnel Management contract to modernize federal HR systems, adding a new government customer win.
• Neutral Sentiment: Analysts at several firms raised or reaffirmed price targets after the report, indicating Wall Street still sees upside despite the selloff.
• Negative Sentiment: Investors reacted negatively to Oracle’s plan to sharply increase AI-related capital expenditures and raise about $40 billion in debt and equity financing, which sparked fears over cash burn and leverage.
• Negative Sentiment: Reports of an active PeopleSoft zero-day attack and Oracle’s urgent patch warning may add near-term cybersecurity concerns, though this is more of a reputational issue than a direct earnings hit.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. State Street Corp raised its holdings in 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 purchasing an additional 3,216,915 shares during the last quarter. Morgan Stanley raised its holdings in Oracle by 1.9% during the 4th quarter. Morgan Stanley now owns 27,125,099 shares of the enterprise software provider’s stock worth $5,286,953,000 after purchasing an additional 495,146 shares during the last quarter. Amundi raised its holdings in Oracle by 32.9% during the 3rd quarter. Amundi now owns 9,636,090 shares of the enterprise software provider’s stock worth $2,809,609,000 after purchasing an additional 2,385,556 shares during the last quarter. FIL Ltd raised its holdings in Oracle by 1,605.7% during the 4th quarter. FIL Ltd now owns 3,976,441 shares of the enterprise software provider’s stock worth $775,048,000 after purchasing an additional 3,743,314 shares during the last quarter. Finally, Ensign Peak Advisors Inc raised its holdings in Oracle by 18.8% during the 4th quarter. Ensign Peak Advisors Inc now owns 3,597,367 shares of the enterprise software provider’s stock worth $701,163,000 after purchasing an additional 568,894 shares during the last quarter. Institutional investors own 42.44% of the company’s stock.

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.