Oracle's co-CEOs oversaw one of the fastest contract buildouts in enterprise software history, yet the stock cratered anyway. The question investors are wrestling with now cuts to the heart of the AI buildout era.
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One year into the most recent co-CEO era at Oracle (NYSE:ORCL | ORCL Price Prediction), the stock is down 50.2% over the trailing 12 months, with a 52-week range that has swung from a high of $329.50 to a low of $114.50. Shares changed hands around $148.99 in Monday’s premarket.
Clay Magouyrk and Mike Sicilia took over as co-CEOs near the peak. The contracted business under their leadership then grew at a pace almost nothing in enterprise software has matched. The stock went the other way. Did the business genuinely improve, or did the market simply reprice what investors will pay for growth that requires heavy capital investment?
What Changed Under the New Chiefs Remaining performance obligations, essentially the dollar value of signed contracts not yet recognized as revenue, ended Q1 FY2027 at $664 billion, a $209 billion year-over-year increase. Cloud infrastructure revenue grew 121%, and Oracle booked more than $30 billion in new AI cloud contracts in a single quarter.
The operational execution has real substance. Oracle delivered 850 megawatts and more than 300,000 GPUs since Q4, with utilization at 97.9% and renewals coming in at a 20% premium. Total revenue reached $19.34 billion, up 29.6%, versus the $14.93 billion posted in the quarter the handover happened. Co-CEO Magouyrk said, “We are delivering data center and GPU capacity at a pace that would have seemed impossible only a year ago.”
The multicloud pact with Microsoft (NASDAQ:MSFT) Azure, Amazon (NASDAQ:AMZN) AWS, and Google is the strategic pivot. Multi-cloud database revenue grew 353% year over year. The GPU muscle comes from Nvidia (NASDAQ:NVDA), whose Vera Rubin systems ship to Oracle customers in Q2. (The power, cooling, and networking suppliers riding the same buildout are the subject of a free report on seven non-chipmaker AI infrastructure names.)
Where the Skeptic Case Lives Capital intensity is the whole bear case. Q1 capex hit $28.5 billion, free cash flow was negative $5.4 billion, and management guided FY27 capex to $90 billion to $95 billion. Oracle completed a $20 billion at-the-market equity issuance, and interest expense rose 55% to $1.4 billion. CFO Hilary Maxson has flagged a roughly five-percentage-point full-year gross margin decline for fiscal 2026.
The earnings optics deserve scrutiny. FY26 EPS of $7.63 flatters against FY27 guidance of $8.10, but Q2 FY26’s $2.26 EPS included a $2.7 billion Ampere divestiture gain. The remaining performance obligations figure is only as good as the customers behind it, and cash goes out years before revenue arrives.
Verdict: Year One Grade Grade: B+. The co-CEOs inherited businesses they already ran and delivered a scale test with numbers that back the story. Worth watching over the next 12 months is whether operating cash flow of $23.1 billion continues to outpace net cash capex, which management estimates at no more than $70 billion for the year. Wall Street is with them: 82% bullish and a $237.97 consensus price target. Now the co-CEOs need to prove it.
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Oracle zvýšila meziročně výnosy o 30 % na 19,3 miliardy USD a cloudová infrastruktura vzrostla o 77 % díky více než 30 miliardám USD nových AI kontraktů.
Oracle (ORCL) has been garnering a lot of attention lately, and artificial intelligence (AI) is at the center of much of it.
The tech giant is making a massive bet on AI and cloud infrastructure, while simultaneously cutting costs and restructuring parts of its business. The heavy spending on building out that infrastructure in concert with cutting jobs has left investors trying to figure out what the company will ultimately look like on the other side of the AI buildout.
Key Takeaways: Oracle is offsetting its massive AI buildout with a 13% workforce reduction and $2.8 billion in restructuring. The company’s cloud infrastructure revenue jumped 77%, fueled by over $30 billion in new AI contracts. The leveraged ORCU ETF capitalizes on this growth-versus-cuts volatility — allowing for aggressive, short-term bets on Oracle. Oracle’s latest quarterly earnings results showed just how quickly its cloud business is growing. Revenue rose 30% year over year to $19.3 billion, while the company’s remaining performance obligations jumped to $664 billion.
Further, Oracle also secured more than $30 billion in new AI cloud contracts during the quarter.
See more: Top Performing Leveraged/Inverse ETFs: 9/06/2026
Those revenue numbers explain Oracle’s reasoning for committing so much cash to AI infrastructure, but the spending is happening at the same time as the company announces massive layoffs.
Layoffs and Restructuring Costs Oracle also recently announced that it expects to spend another $700 million on restructuring costs, bringing the total expected cost of its 2026 restructuring plan to $2.8 billion.
Most of those costs so far have been tied to employee severance. Oracle’s workforce shrank by roughly 13% during its most recent fiscal year.
The layoffs have also not stopped, with Oracle announcing just this week another round of cuts as part of a “broader organizational change.”
Like its competitors, Oracle has seen a need for more computing power to support its AI efforts. The company’s fiscal 2026 results showed cloud revenue up 39%, while cloud infrastructure revenue jumped 77%.
This tension between growth and the large cost of supporting that growth has made Oracle’s stock an interesting one to watch. AI demand can lift the companies’ shares, but concerns over spending, financing, and restructuring can quickly weigh on its stock.
Investors Can Take Different Views on Oracle That combination of growth and costs has made Oracle shares especially sensitive to changes in investor sentiment, creating a volatile backdrop for products such as the Direxion Daily ORCL Bull 2X ETF (ORCU).
ORCU allows investors a way to take a more aggressive short-term view on Oracle, seeking 200% of the stock’s daily performance. For investors who believe the company’s AI and cloud growth has the potential to drive the stock higher, the fund provides a more targeted approach to express that view.
The bigger appeal for a product like ORCU is the ability for investors to focus specifically on Oracle, rather than making a broader bet on technology or AI.
With Oracle facing some pretty big questions around its bet on AI and the cost of building out that business, ORCU gives investors a different path to position around those developments.
For more news, information, and strategy, visit the Leveraged & Inverse Content Hub.
Oracle má k prvnímu čtvrtletí fiskálního roku 2027 dluh více než 125 miliard USD, ale tržby vzrostly o 30 % na více než 19 miliard USD. Cloudový segment vzrostl o 60 %.
Oracle (ORCL -1.98%) is down 56% from its peak about a year ago. The company's stock surged after signing a $300 billion agreement with OpenAI. However, doubts emerged about whether OpenAI could fulfill its obligations under the agreement, which sent Oracle stock tumbling.
Also, Oracle has had to borrow heavily to build the infrastructure to fund that deal, which could cause investors deep pain if that investment does not yield positive returns. Nonetheless, even if OpenAI falters, I do not think Oracle's debt load will derail its cloud ambitions, and here's why.
Image source: Getty Images.
Admittedly, Oracle has taken on significant risk by borrowing heavily to fund its infrastructure build-out. As of the first quarter of fiscal 2027 (ended Aug. 31), its total debt was just over $125 billion.
Considering that the company's book value is only about $67 billion, that places considerable strain on its balance sheet. If the industry suffered a severe AI bust, it could undermine the investment case in Oracle stock.
Also, the company spent over $28 billion on capital expenditures (capex) in fiscal Q1 alone, and that occurred after capex was nearly $56 billion in fiscal 2026. Although demand for AI infrastructure is high and growing fast, a sudden reversal of this trend could further spook Oracle's investors.
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Nonetheless, even if the feared AI bust occurs, investors should remember that the dot-com bust did not destroy the internet. Likewise, AI is unlikely to disappear, even if its development pauses for a time.
Moreover, investors who follow Oracle closely might notice that the AI agreements have not stopped with OpenAI. Since it announced the OpenAI deal one year ago, its backlog has risen by $209 billion to $664 billion. That increase is more than two-thirds the size of the OpenAI deal, and could make the database giant one of the best-performing AI stocks through 2028 and possibly beyond.
Furthermore, Oracle's financial performance should reassure investors, particularly its results in fiscal Q1. Revenue of just over $19 billion increased by 30%. Growth in the cloud segment, which handles its AI infrastructure, was 60%.
Operating expense growth was 18%, boosting operating income by 57% to over $6.7 billion. In comparison, the interest expense for the quarter was about $1.4 billion, more than enough for Oracle to earn a $4.7 billion quarterly profit.
Additionally, Oracle holds around $37 billion in cash and marketable securities. Hence, the company appears to be in a financial position to invest in AI while being able to pivot should the industry suddenly go bust.
Investing in Oracle stock Oracle's heavy debt load makes it a riskier stock, but I believe the debt is unlikely to derail the company's AI cloud ambitions.
Indeed, carrying nearly twice its book value in debt increases the risk of investing in a company, to the point that it is probably not suitable for more conservative investors.
However, even amid heavy spending, the growing backlog -- with or without OpenAI -- makes it likely that its newly built infrastructure will continue to attract the paying clients that have fueled Oracle's recent growth.
Hence, between its current profitability and ability to pivot, investors should expect the cloud stock to eventually achieve its AI ambitions.
Oracle (NYSE: ORCL) is set to pay its next quarterly dividend on October 23, 2026, giving shareholders another cash payout.
According to Oracle’s dividend schedule, the technology company declared a regular quarterly dividend of $0.50 per share, unchanged from the previous payment.
The ex-dividend date is October 9, meaning investors must own Oracle stock before that date to qualify for the upcoming distribution.
For investors holding 100 ORCL shares, the October dividend payment will amount to $50 before taxes. On an annualized basis, Oracle’s dividend stands at $2 per share, meaning a 100-share position would generate $200 per year if the current payout remains unchanged.
At Oracle’s closing price of about $147 on September 18, the dividend translates to a forward yield of approximately 1.35%. The company currently maintains a payout ratio of 18.16%, suggesting only a small portion of earnings is being distributed to shareholders.
Oracle dividend data. Source: Dividend.com Oracle’s strong cloud growth The upcoming Oracle dividend payment follows a strong first-quarter fiscal 2027 earnings report that highlighted accelerating demand for the company’s cloud infrastructure services.
Oracle reported revenue of approximately $19.35 billion for the quarter, up 30% year over year and ahead of Wall Street expectations. Cloud revenue surged 62% to $11.6 billion, driven by a 121% increase in cloud infrastructure revenue.
The company also reported non-GAAP earnings per share of $1.92, while its remaining performance obligations, a key measure of future contracted revenue, climbed to $664 billion. Oracle added more than $30 billion in new AI contracts during the quarter and delivered 850 megawatts of new data center capacity alongside more than 300,000 GPUs.
Management expects fiscal 2027 revenue to exceed $90 billion and has guided for non-GAAP earnings per share of about $8.10.
ORCL stock debate despite operational strength Despite its strong operating performance, Oracle stock has remained under pressure in 2026, falling about 25% year-to-date.
Investors remain divided on the company’s outlook. Bulls point to Oracle’s rapidly expanding AI cloud business, accelerating revenue growth, and massive backlog that provides visibility into future earnings.
They also note that the stock trades at a forward earnings multiple below many large technology peers.
However, concerns persist over Oracle’s aggressive spending plans. The company expects capital expenditures of between $90 billion and $95 billion this fiscal year as it expands data center capacity to meet AI demand.
Oracle has also reported negative free cash flow and carries a substantial debt load, factors that continue to weigh on investor sentiment.
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Dluhopisy v objemu kolem 18 miliard USD navázané na datacentrum pronajaté společností Oracle v Novém Mexiku jsou pod tlakem; banky je oceňují na 89 až 91 centů za dolar. Prodej dluhu se zastavil kvůli obavám z rostoucího zadlužení Oracle.
About $18 billion in loans tied to an Oracle-leased (ORCL.N) data center in New Mexico has come under pressure, with loans quoted at 89 to 91 cents on the dollar by syndicate banks including Santander and Jefferies (JEF.N), the Financial Times reported on Friday.
The development comes amid concerns that growing local opposition to the project over fears it would impact water supply and air quality could derail Oracle's massive AI infrastructure build-out, the FT report said.
The 1,400-acre "Project Jupiter" campus in Doña Ana County is part of Oracle's broader agreement with OpenAI to provide AI computing capacity.
The project secured $18 billion in loans from a consortium of banks late last year to kick-start construction, according to media reports.
Efforts to sell the debt to a broader pool of investors have stalled amid concerns over Oracle's rising borrowing and weakening creditworthiness, the Financial Times said.
Oracle, Santander and Jefferies did not respond to Reuters requests for comment.
Oracle's corporate credit rating sits one notch above junk following a downgrade from S&P in July. Banks were now forced to hold more Oracle-linked project debt on their balance sheets than initially planed, the Financial Times said.
Oracle has been ramping up spending to finance its expansion into AI infrastructure, while its rising debt load has drawn increasing investor scrutiny.
Project Jupiter was initially set to be powered by 2.2 gigawatts of gas turbines, but the state land office blocked a request to run a natural gas pipeline to the data center, the report said.
Illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images Oracle employees caught in the company's latest round of layoffs now know exactly what they'll leave behind and what they'll take with them.
An internal FAQ document viewed by Business Insider lays out more details for staff impacted, including severance capped at 26 weeks, canceled stock awards, lost bonuses, and deadlines for exercising vested options.
Oracle started notifying affected staff on Monday. Business Insider reported last month that the company had drawn up plans for double-digit percentage layoffs on some teams to reduce payroll as it racks up billions in debt to fund AI infrastructure.
Employees were offered four weeks' base salary plus one week per year of employment, according to documents viewed by Business Insider. The full FAQ document includes the maximum severance payout and what happens to employee bonuses, commissions, and stock options.
The details offer a window into the employee impact of Oracle's latest cost-cutting push. The company has shed tens of thousands of workers while borrowing heavily and spending tens of billions of dollars to build data centers and other infrastructure needed to support its AI ambitions. For employees leaving in the latest cuts, the financial impact extends beyond losing a paycheck: unvested stock disappears, future corporate bonuses are forfeited, and participation in employee stock programs ends.
Oracle executives didn't directly address the layoffs in an employee town hall this week, but Chief Financial Officer Hilary Maxson told staff the company needs to be "thoughtful" about where it spends tims and money.
"I don't mean doing more with less, which is a phrase that I really, really don't like," Maxson said. "It means simplifying processes that don't help customers and making clear choices on where we're going to use our resources where they have the greatest impact."
This latest round of layoffs follows cuts earlier this year. The company's workforce declined by 21,000, or 13%, in the 2026 fiscal year that ended May 31, according to a recent filing.
Oracle's severance package is comparatively less generous than those offered by other Big Tech companies over the past year.
Salesforce's standard policy offers up to 30 weeks of severance pay, with a minimum of 9 or 13 weeks based on role, plus an additional 3 weeks of service per year.
Microsoft offered employees in its latest round of layoffs this summer up to 39 weeks' base pay, with a minimum of 60 days and one or two additional weeks per six months of service, depending on seniority.
SeveranceEmployees receive four weeks of base pay for their first year of service, plus one additional week of base pay for each additional year worked. Six months or more in the last year of employment will count as a full year.Total severance is capped at 26 weeks of base salary, paid out about three weeks after employees sign a severance agreement and return company property.Employees rehired within six months may have to repay a portion of their severance.Employee Stock Purchase PlanParticipation ends on the employee's termination date.Contributions made during the current offering period are generally refunded without interest in the employee's final paycheck.Employees who leave during specific purchase windows (Sept. 16—30 or March 16—31) will have their contributions used to purchase stock instead of receiving a refund.Stock optionsAll unvested stock options are canceled when employment ends.Employees generally have up to three months after termination to exercise vested options, subject to the original expiration date.Some options granted through acquired companies may have a shorter, one-month exercise window.Restricted Stock UnitsAll unvested RSUs are canceled upon termination.Previously vested RSUs remain the employee's property and stay in their Fidelity brokerage account.Vacation and sick payAccrued vacation is prorated through the employee's termination date and paid out according to company policy.Unused paid sick leave is not paid out at separation unless required by applicable law.BonusesEmployees on sales or consulting bonus plans may receive any bonus earned under the terms of their compensation plan.Employees on corporate bonus plans are not eligible for future corporate bonus payouts after termination.CommissionsEmployees stop earning commissions on their last day of employment.Commissions already earned but not yet paid remain payable under the terms of the applicable compensation plan.Have a tip? Contact this reporter via email at [email protected] or Signal at +1-425-344-8242. Use a personal email address and a nonwork device; here's our guide to sharing information securely.
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Oracle Layoffs Enterprise Software More Artificial Intelligence Cloud Computing Exclusive
Oracle hlásí backlog 664 miliard USD, ale jeho volný peněžní tok je po kapitálových výdajích záporný 5 miliard USD. Meta zvýšila tržby o 27,96 % na 60,80 miliardy USD, ale volný peněžní tok jí spadl o 91,3 % na 784 milionů USD.
Oracle is sitting on a $664 billion backlog while Meta just watched its free cash flow crater by more than 90%, yet both companies are pouring tens of billions into AI compute every quarter with no clear timeline for the…
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Oracle (NYSE:ORCL | ORCL Price Prediction) and Meta Platforms (NASDAQ:META) just delivered two of the most watched AI infrastructure reports of the season. Oracle’s Q1 FY2027 earnings report showcased a $664 billion backlog. Meta’s Q2 2026 snapped a six-quarter EPS beat streak. Both are spending furiously on compute, neither converting that spend to cash quickly.
Backlog Boom Meets a Cost Shock Oracle’s cloud business finally looks like the growth engine chairman Larry Ellison promised. IaaS revenue jumped 121% year over year to $7.39 billion. The company signed more than $30 billion of additional AI contracts in Q1 without requiring additional capital from Oracle. Capex hit $28.5 billion in the quarter, pushing free cash flow to negative $5 billion. Deployment is real: 850 megawatts of capacity and more than 300,000 GPUs shipped at 97.9% utilization (all of that capacity has to be powered and cooled by somebody, which is why we pulled seven non-chipmaker suppliers into a free AI infrastructure report).
Meta had a rougher landing. Revenue climbed 27.96% to $60.80 billion, but diluted EPS of $6.18 missed the $7.22 estimate. Total costs surged 55% to $42.03 billion, weighed down by $2.4 billion in legal charges and $1.18 billion in severance. Free cash flow collapsed to $784 million from $8.55 billion a year ago. Capex reached $30.12 billion in one quarter alone.
Selling Compute Versus Selling Intelligence Lens Oracle Meta Monetization Path External enterprise cloud tenancy, prepaid GPU contracts Internal ad targeting, personal agents, business agents Backlog Signal $664B RPO, half converting over 36 months Advantage Plus at $75 billion annual run rate 2026 Capex Load $90-95 billion full-year plan $130-145 billion full-year outlook Cash Reality Negative FCF, $20B ATM equity issued FCF down 91.3% YoY Oracle is renting shovels. CEO Clay Magouyrk noted customers are renewing GPU capacity at a 20% premium to prior contracts. Meta is baking intelligence into its own funnel. Zuckerberg argued there is a “significantly higher margin on selling intelligence rather than selling compute directly.” Ad impressions rose 14% and average price per ad climbed 12%, so payback is visible in the auction rather than the cash line.
Watch Cash Conversion Over Bookings For Oracle, I want to see net cash capex land at “not more than $70 billion” and RPO convert on schedule. CFO Hilary Maxson refused to timestamp positive FCF, saying “We haven’t given a particular timeframe on that yet.” For Meta, the tell will be whether Q3 revenue of $61 to $64 billion arrives without another expense revision, and whether Reality Labs bleeding ($4.03 billion operating loss in Q1) narrows once AI glasses scale.
Why Meta Screens Better Than Oracle Right Now Given the choice today, I lean Meta. The ad engine already prints cash, and improvements like the 15.7% uplift in conversions on Facebook tell me the compute is paying rent inside the business. Oracle’s story is thrilling on paper, yet ORCL is down 21.99% year to date because investors are pricing the funding gap rather than the backlog. I would flip to Oracle the moment net cash capex peaks and multicloud renewals prove strong returns. Until then, Meta is the safer way to own the same theme.
Contact [email protected] for any questions or corrections.
Oracle po nasazení ChatGPT Enterprise a Codex dosáhla 80% adopce do tří měsíců, ale AI jí zatím jen zrychlila psaní kódu a přesunula úzká místa dál v procesu.
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Clay Magouyrk is the co-CEO of Oracle. Bloomberg/Getty Images Oracle spent billions over the past two years helping other companies run AI. Its own companywide AI rollout came much later.
During an internal town hall this week, co-CEO Clay Magouyrk said that last year, the company still hadn't found a way to make generative AI broadly useful to its own workforce.
Now, after rolling out OpenAI's ChatGPT and Codex, employees are writing code dramatically faster, but creating new bottlenecks along the way.
"When I think about where we were a year ago," Magouyrk said, "I don't think we figured out how do we make AI really that useful for ourselves."
Oracle had made some progress in using AI for customer support last year, but it had not yet found broad use across business units, such as developers, finance employees, and sales teams.
That started to change, Oracle Chief Information Officer Jae Evans told employees, in April and May, when the company rolled out ChatGPT Enterprise, and OpenAI's software development tool, Codex.
Rather than simply making the tools available, the company established corporate standards, security controls, and internal policies and reached 80% adoption within three months, Evans said.
"We made it so easy to use and adopt that we might have gotten a little bit of sticker shock," Evans said, so now the company provides visibility into which models employees are using and how much they cost.
OpenAI's GPT-6 Astra costs 2.5 times more than other models, like could be used for many purposes, Evans said, citing Terra as an example of a lower-cost model that could be used for routine tasks.
The executives said AI has dramatically accelerated software development, but also created new bottlenecks elsewhere in the engineering process.
"We see developers able to generate code using this tool in like a week's time," Evans said. "Normally, that would have taken a team of developers two to three quarters to go develop."
For now, AI deployment at Oracle hasn't translated into getting those products to customers more quickly.
"When you make the actual act of writing the code quicker, it doesn't mean that suddenly everything is 1000 times faster," Magouyrk said, explaining that Oracle is still figuring out how to redesign its testing, validation, deployment, and release management processes to keep pace.
Oracle's experience highlights the next challenge facing companies rushing to bring AI into the workplace. Powerful models can dramatically speed up individual tasks, but they can also rack up big bills and simply move bottlenecks elsewhere. JPMorgan recently set cost limits for employees using Claude from Anthropic.
Oracle also received early access to Anthropic's Mythos Preview model, which scans code for security vulnerabilities, and used it to uncover more potential security issues in its first two weeks than it had found in an entire year, Evans said.
Announced in April, Anthropic's Mythos is considered one of the most powerful AI systems ever developed, with governments and security agencies warning that its capabilities surpass those of other models, especially for cybersecurity.
That model generated a high number of false positives (Evans estimated roughly 60% to 70%), prompting Oracle to build new processes to verify vulnerabilities before engineers began fixing them. Anthropic did not publicly release the model.
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Oracle hlásí RPO 664 miliard USD, tedy asi 9,2násobek tržeb za posledních 12 měsíců. To naznačuje silný růst poptávky po jejích cloudových AI službách, i když zhruba 300 miliard USD připadá na OpenAI.
Despite strong growth for the company's cloud infrastructure business, Oracle (ORCL +4.49%) shareholders haven't had cause to celebrate the stock's performance in 2026. Its share price is down roughly 28% year to date -- and it's off 57% from its lifetime high.
While the stock hasn't been performing well lately, there are solid reasons to be excited about the business's future. For starters, the tech giant closed out its last reported quarter with a remaining performance obligation (RPO) of $664 billion. Here's why that's a number investors should pay attention to.
Image source: Getty Images.
Oracle's massive RPO points to huge opportunities Remaining performance obligation is a metric that tracks the value of services and products that have been contracted for but not yet delivered, and contracted sales that have yet to be recorded as revenue. With Oracle reporting an RPO of roughly $664 billion at the end of its last fiscal quarter, there's a strong outlook for demand for the company's artificial intelligence (AI) cloud infrastructure services.
Over the trailing-12-month period, Oracle has recorded sales of roughly $71.8 billion. In other words, the value of the company's backlog is roughly 9.2 times the sales it generated over its past four quarters. That suggests the company will see a massive sales ramp in the coming years.
Notably, Oracle's massive backlog isn't completely without risk. Of its RPO, roughly $300 billion comes from OpenAI -- the frontier artificial intelligence company behind ChatGPT and other technologies. This high level of customer concentration creates uncertainty. If OpenAI starts seeing weaker demand and scales back its own growth initiatives, it could wind up canceling some of its contracted spending with Oracle, or proceeding at a much slower pace.
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On the other hand, that's a risk worth embracing for investors looking for reasonably valued plays in the AI infrastructure space. Oracle is guiding for its revenue to grow roughly 34% this year, and it also expects earnings to grow roughly 19% despite the high costs associated with ramping up its cloud infrastructure business.
With Oracle stock currently trading at roughly 17 times this year's expected earnings, the company could deliver huge gains for long-term shareholders if its cloud AI bets continue to pay off. Oracle's massive RPO looks promising and points to a strong rate of sales expansion over the next five years.
While there's a significant risk associated with the heavy RPO concentration in its OpenAI contract, it's also possible that the company will continue to win additional major deals. The choice of a top frontier AI leader to sign on with it for a massive amount of compute provides strong validation for Oracle's AI infrastructure offerings -- and that could translate into transformative business performance later.
Oracle vzrostl zhruba o 4 % po zprávách, že OpenAI jedná o financování při valuaci 1,2 bilionu USD. Investoři to vnímají jako podporu pro jeho AI infrastrukturu.
Oracle ORCL stock rose about 4% at midday on Thursday as investors responded to positive news flow around OpenAI, highlighting the growing importance of the AI company to Oracle’s outlook.
Oracle’s relationship with OpenAI has become a major part of its AI infrastructure strategy.
The companies agreed to a $300 billion computing deal last September, helping position Oracle as a major hyperscaler.
However, the scale of the commitment has also raised concerns about Oracle’s spending, debt and exposure to a single customer.
Oracle’s stock has increasingly reacted to developments surrounding OpenAI.
Recent reports that OpenAI could delay its initial public offering from 2026 to at least 2027 weighed on sentiment.
However, reports that OpenAI has been in talks to raise capital at a valuation of $1.2 trillion provided a more positive development for Oracle.
If the reported fundraising goes ahead, it could help address concerns about OpenAI’s ability to fund its expansion and, in turn, support Oracle’s plans to build AI infrastructure for the company.
Oracle agreed to provide $300 billion of computing capacity to OpenAI, making the AI company a significant part of its future infrastructure demand.
The relationship has also contributed to concerns in Oracle’s debt market.
Higher credit default swap spreads have reflected investor concerns about the cost and risks associated with Oracle’s debt as the company invests heavily in AI infrastructure.
Oracle reported remaining performance obligations of roughly $664 billion at the end of its latest fiscal quarter.
RPO represents contracted services and products that have not yet been delivered or recognised as revenue.
The size of the backlog is significant compared with Oracle’s trailing-12-month sales of approximately $71.8 billion.
The RPO is equivalent to roughly 9.2 times the company’s sales over the previous four quarters.
However, the backlog also carries customer concentration risk. Around $300 billion of Oracle’s RPO is linked to OpenAI.
If OpenAI were to experience weaker demand or slow its expansion plans, it could potentially reduce or delay its contracted spending with Oracle.
That would affect the pace at which Oracle converts its backlog into revenue.
At the same time, the scale of Oracle’s RPO points to significant potential demand for its AI cloud infrastructure services.
Oracle expects revenue to grow about 34% this year and earnings to increase roughly 19%, despite the costs involved in expanding its cloud infrastructure business.
The stock is trading at approximately 17 times this year’s expected earnings, according to the provided text.
Oracle is also reducing its workforce as it manages operating costs while increasing spending on AI infrastructure.
The company is laying off 359 Seattle-based employees, including programme managers, software developers and engineers, according to a Worker Adjustment and Retraining Notification filing reported by the Business Journal.
The latest cuts follow 491 job reductions in Seattle earlier in the year. The reported layoffs have affected at least 850 employees in the city during 2026.
Oracle notified employees about the latest cuts on Monday.
The company reportedly cut employees across two Seattle locations, including the JPMorganChase Center.
The layoffs come as Oracle continues to invest heavily in AI infrastructure while managing the associated spending and debt.
The company’s relationship with OpenAI therefore remains central to the outlook for that investment, with the reported fundraising discussions potentially providing additional context for Oracle’s large contracted commitments.
Oracle ve fiskálním 1. čtvrtletí 2027 (končícím 31. srpna) zvýšila tržby o 30 % na 19,3 miliardy USD, ale její cloudová infrastruktura sice rostla o 120 % na 7,4 miliardy USD, zároveň však přetrvávají obavy z dlouhodobého dluhu ve výši 117 miliard USD.
Oracle (ORCL +2.00%) stock is down 53% from last year's record high and is currently trading at a very attractive valuation, but that doesn't necessarily mean it's a buy. Even though the company operates some of the best data centers for processing artificial intelligence (AI) workloads, investors are worried about its significant debt, particularly because some of its biggest customers might not be able to meet their financial commitments over the next few years.
Oracle's latest operating results for its fiscal 2027 first quarter (ended Aug. 31) did little to ease those concerns, despite blistering revenue growth from its cloud infrastructure business. Here's why investors should think twice before buying the stock.
Image source: The Motley Fool.
Oracle operates some of the world's best AI data centers Developing an AI model requires substantial computing power, typically delivered by large data centers that house thousands of specialized chips called graphics processing units (GPUs). The average business doesn't have billions of dollars to build this infrastructure, so they rent it from cloud providers like Oracle instead.
Oracle's data centers are equipped with GPUs from leading suppliers such as Nvidia and Advanced Micro Devices, giving developers some optionality. It connects these chips using a proprietary remote direct memory access (RDMA) technology, which transfers data between components faster than traditional Ethernet networks, resulting in higher processing speeds.
All of Oracle's data centers use a similar architecture regardless of their size, and they are also highly automated by software. These attributes enable the company to bring infrastructure online faster than most competitors, which is attractive to developers eagerly awaiting more computing capacity.
OpenAI, xAI, and Meta Platforms are just some of Oracle's top AI customers. In fact, OpenAI recently trained its latest GPT-6 Astra models at Oracle's data center campus in Abilene, Texas.
Infrastructure revenue growth continues to accelerate, but the risks are mounting Oracle generated $19.3 billion in total revenue during its fiscal 2027 first quarter, a 30% increase from the year-ago period. But all eyes were on the company's cloud infrastructure business, which accounts for the money it earned by renting computing capacity to customers. Its Q1 revenue exploded by a whopping 120% to $7.4 billion, accelerating from the 93% growth it posted three months earlier.
Management expects infrastructure revenue growth to continue accelerating, partly because of Oracle's $664 billion in remaining performance obligations (RPO). RPO reflects the value of signed contracts for services that haven't been delivered yet, so it's like an order backlog from customers who are waiting for more data center capacity to come online.
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But there are growing concerns that Oracle won't be able to convert all of its RPO into actual revenue. According to a report by The Wall Street Journal last September, OpenAI alone accounts for $300 billion of Oracle's total backlog. OpenAI currently has just $40 billion in annualized revenue and is losing money, so there is no guarantee it will ever be able to fulfill its commitments.
Plus, OpenAI CEO Sam Altman recently expressed support for Anthropic's strategy to pace AI development to curb some of the risks to humanity, which could alter the trajectory of the company's spending plans.
Oracle has borrowed a significant amount of money to fund the build-out of its data centers and now carries over $117 billion in long-term debt. The company could find itself in a dire financial situation if its customers don't meet their obligations.
Oracle stock looks cheap, but that doesn't mean it will rise Oracle delivered generally accepted accounting principles (GAAP) earnings of $6.38 per share over the last four quarters, placing its stock at a price-to-earnings (P/E) ratio of 22.6. That is a steep discount to its five-year average P/E of 34.6, suggesting the stock is undervalued.
Data by YCharts.
Moreover, Oracle is cheaper than both the S&P 500 and Nasdaq-100 indexes, which have P/E ratios of 23.2 and 33.8, respectively. Therefore, this stock looks like an attractive buy based on valuation alone.
However, there is a big question mark over Oracle's future earnings, because it's hard to predict how much of its RPO will actually translate into revenue and profit. It seems investors aren't willing to pay a premium valuation for the company due to that uncertainty, which is understandable, as its substantial debt adds even more risk to the equation.
This is why a beaten-down stock isn't always a cheap stock, so I think investors might be better off steering clear of Oracle for the time being.
Oracle vykázala silné výsledky za 1. čtvrtletí, když růst OCI dosáhl 121 % a zákaznické zálohy činily 11,36 miliardy USD. Volné cash flow ale zůstává záporné.
SummaryOracle delivered the right results at the wrong time; a hawkish CPI print, coupled with odds of a Fed hike, is not compelling for a stock with a 1.9 beta.Leaving aside the short-term noise, the Q1 print was better than what I initially anticipated. OCI growth hit 121%, above the Street's consensus.Customer prepayments reached $11.36 billion. I think that materially changes how investors should read Oracle’s operating cash flow and funding needs.That said, even with customer prepayments, ORCL's FCF is still negative, and management refused to give a timeline for when it will turn positive.I can't ignore the short-term noise, so I'm downgrading to a neutral rating. Fundamentals are largely intact, and I still like the growth story ahead.Douglas Rissing/iStock via Getty Images
Heading into Oracle's (ORCL) print, I was more worried about the macro than Oracle putting out a disappointing earnings release. I said:
On the risk side, I think the macro is now becoming more relevant for
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Shares of Oracle Corporation (NYSE:ORCL – Get Free Report) dropped 3.1% during trading on Tuesday after Freedom Broker lowered their price target on the stock from $210.00 to $205.00. Freedom Broker currently has a buy rating on the stock. Oracle traded as low as $140.02 and last traded at $140.37. Approximately 31,006,479 shares traded hands during trading, an increase of 6% from the average daily volume of 29,306,924 shares. The stock had previously closed at $144.79.
A number of other analysts have also recently issued reports on the stock. CLSA assumed coverage on shares of Oracle in a research note on Monday, July 20th. They set a “hold” rating and a $145.00 target price for the company. BTIG Research reiterated a “buy” rating and issued a $400.00 price target on shares of Oracle in a research note on Friday, June 5th. Oppenheimer reiterated an “outperform” rating on shares of Oracle in a research note on Tuesday, September 8th. TD Cowen reissued a “buy” rating and issued a $240.00 price target on shares of Oracle in a report on Wednesday, September 9th. Finally, Evercore restated an “outperform” rating and set a $245.00 price objective on shares of Oracle in a research report on Monday, June 8th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $252.58.
View Our Latest Stock Report on ORCL
Insider Activity In related news, Vice Chairman Jeffrey Henley sold 400,000 shares of the company’s stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total value of $63,664,000.00. Following the transaction, the insider directly owned 400,000 shares in the company, valued at approximately $63,664,000. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible 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’s AI opportunity remains substantial: recent results showed revenue up nearly 30% year over year, cloud growth accelerating, and remaining performance obligations reaching approximately $664 billion. Evercore ISI maintained a Buy rating, citing aggressive AI infrastructure expansion and a clearer path toward cash-flow improvement. Evercore ISI Oracle rating Positive Sentiment: Co-founder Larry Ellison canceled a planned sale of up to 50 million shares, valued at roughly $7.5 billion. The move removes a potential source of additional share supply, although it does not represent a company buyback or new investment. Larry Ellison cancels Oracle stock sale Positive Sentiment: Oracle announced a 1.7-gigawatt Texas wind-energy investment and is targeting carbon-free power for AI data centers by 2035. The initiative could support long-term data-center expansion while addressing energy constraints and sustainability requirements. Oracle clean-energy investment Neutral Sentiment: Java 27 launched with post-quantum security, AI, performance and developer-productivity enhancements. Oracle also expanded its healthcare and enterprise customer offerings, but the near-term revenue impact is unclear. Oracle Java 27 release Negative Sentiment: Oracle reportedly began another round of layoffs while increasing spending on AI data centers. Management’s cost-cutting message is intensifying concerns that the company is balancing workforce reductions against a capital-intensive expansion plan. Oracle layoffs Negative Sentiment: Analysts and investors remain focused on Oracle’s financing needs, rising debt and reported plans involving tens of billions of dollars for AI infrastructure. The backlog is impressive, but the market wants evidence of cash generation and profitability rather than bookings alone. Oracle financing plan Negative Sentiment: Oracle has underperformed other AI-linked stocks as the broader sector rebounds. Concerns include customer concentration, the possibility that OpenAI could change or reduce its commitments, and uncertainty over when AI infrastructure investments will produce attractive returns. Oracle and OpenAI risk Institutional Inflows and Outflows A number of institutional investors and hedge funds have recently made changes to their positions in ORCL. Norges Bank acquired a new position in Oracle during the fourth quarter valued at approximately $4,336,031,000. Bank of New York Mellon Corp bought a new stake in Oracle during the second quarter worth $1,911,930,000. Capital Research Global Investors boosted its holdings in shares of Oracle by 29.3% in the 4th quarter. Capital Research Global Investors now owns 30,137,126 shares of the enterprise software provider’s stock valued at $5,874,070,000 after purchasing an additional 6,826,299 shares in the last quarter. Cardano Risk Management B.V. boosted its holdings in shares of Oracle by 882.3% in the 4th quarter. Cardano Risk Management B.V. now owns 4,991,010 shares of the enterprise software provider’s stock valued at $972,798,000 after purchasing an additional 4,482,934 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Oracle in the 2nd quarter valued at $625,454,000. Institutional investors and hedge funds own 42.44% of the company’s stock.
Oracle Stock Performance The company has a current ratio of 1.17, a quick ratio of 1.12 and a debt-to-equity ratio of 1.89. The company has a market cap of $424.44 billion, a P/E ratio of 22.00, a price-to-earnings-growth ratio of 1.05 and a beta of 1.74. The company has a 50 day moving average price of $141.07 and a 200-day moving average price of $160.46.
Oracle (NYSE:ORCL – Get Free Report) last announced its quarterly earnings data on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share for the quarter, topping the consensus estimate of $1.74 by $0.18. The business had revenue of $19.34 billion during the quarter, compared to the consensus estimate of $19.13 billion. Oracle had a return on equity of 48.85% and a net margin of 26.36%.Oracle’s revenue for the quarter was up 29.6% on a year-over-year basis. During the same period in the prior year, the company earned $1.47 EPS. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. On average, equities analysts expect that Oracle Corporation will post 6.52 earnings per share for the current fiscal year.
Oracle Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 9th will be issued a $0.50 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.4%. Oracle’s dividend payout ratio is 31.35%.
About Oracle (Get Free Report)
Oracle Corporation is a global enterprise technology company that develops and provides database software, cloud infrastructure, business applications and related technology services. Its offerings help organizations manage data, run applications, support business operations and build technology environments across on-premises, hybrid and cloud-based settings.
The company’s products include Oracle Database, MySQL, Java, Oracle Cloud Infrastructure and a broad portfolio of cloud applications for enterprise resource planning, financial management, human resources, supply chain management, customer experience and industry-specific operations.
Further Reading Five stocks we like better than Oracle Running on Empty: 3 Energy Plays for Europe’s Deep Freeze 3 Healthcare Stocks for 3 Stages of Life Curaleaf Tries To Roll Up Aurora In a Hostile Cannabis Bid MarketBeat’s Most Downgraded Stocks in Q3: 2 Look Cheap, 1 Looks Risky Receive News & Ratings for Oracle Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Oracle and related companies with MarketBeat.com's FREE daily email newsletter.
Oracle klesla v páté seanci v řadě o 3,1 % a za pět dní odepsala přes 14 % kvůli obavám z výdajů na AI, vyšších sazeb a zadlužení. Přesto většina analytiků dál doporučuje Buy.
Oracle stock NYSE:ORCL extended its decline for a fifth consecutive trading session on Tuesday, as investors have been weighing renewed concerns about the artificial-intelligence spending cycle, higher borrowing costs and the cloud company’s close ties to OpenAI.
Shares fell 3.1% on Tuesday, taking their five-session decline to more than 14%.
The latest weakness came even as chip stocks rebounded from Monday’s sharp selloff, highlighting the pressure facing Oracle as investors reassess companies most directly exposed to the financing and infrastructure demands of the AI boom.
Oracle’s shares have increasingly moved in step with developments surrounding OpenAI, which has emerged as a major customer and driver of the company’s ambitious cloud expansion plans.
Shares of companies supplying products and services to OpenAI broadly declined on Monday after executives at prominent AI companies called for more responsible development of increasingly powerful models.
The concerns have since spread beyond the immediate outlook for AI technology to the amount companies may ultimately spend on the infrastructure needed to train and deploy those systems.
Patrick Walravens, head of technology research at Citizens, told MarketWatch that some investors are worried that recent discussions about "pacing the frontier" of AI development - referring to a recent call by Anthropic CEO Dario Amodei to slow down AI development - could lead to more measured spending by frontier labs including OpenAI and Anthropic.
He also noted that investors may be concerned about possible government regulation of AI, which could also slow spending.
Oracle is particularly exposed because it has taken on debt to finance a major expansion of cloud capacity intended to support OpenAI’s growth ambitions.
DA Davidson analyst Gil Luria described the company as occupying an unusual position in the cloud market.
Oracle has the "backlog" of a hyperscaler, or a large cloud provider, but the risk profile of a neocloud, or a new-age cloud company purpose-built for AI computing needs.
At the end of the August quarter, Oracle reported total remaining performance obligations, a proxy for backlog, of $664 billion.
FactSet also shows the company with $88 billion of net debt.
"If AI slows down, at some point that could reduce the demand for AI compute and the most impacted would be neoclouds, especially ones with leverage," Luria said in the MarkteWatch report, referring to AI computing power.
Oracle’s AI spending plans are also coming under scrutiny as US borrowing costs rise.
The benchmark 10-year US Treasury yield climbed to its highest level since 2007 on Tuesday, while investors increasingly expect the Federal Reserve to hike interest rates.
Higher yields matter particularly for technology companies because a substantial portion of their valuations is based on earnings and cash flows expected several years into the future.
Rising rates can reduce the present value of those future cash flows while making debt-funded infrastructure projects more expensive.
The pressure is especially relevant for Oracle, which has committed to significant investment in AI-related infrastructure.
The company has said it will raise $40 billion through debt and equity financing in its current fiscal year, including the $20 billion stock sale it completed in the first quarter.
Oracle reported negative free cash flow of $5.40 billion on Thursday, although that was better than analysts’ average estimate of a cash burn of $9.56 billion, according to data compiled by LSEG.
The company’s increasing debt burden has contributed to pressure on its shares this year, with the stock down close to 30%.
The company also began notifying employees about a fresh round of layoffs, while social media buzzed with posts from workers claiming to have received termination emails.
“After careful consideration of Oracle’s current business needs,” the company reportedly told affected employees in an email, adding that the redundancies were part of a “broader organizational change.”
The notices said Monday was the employees’ last working day.
The latest decline follows a sharp post-earnings rally in Oracle shares after stronger-than-expected quarterly results and an upbeat outlook helped ease concerns surrounding its debt-funded AI expansion.
JP Morgan analysts led by Samik Chatterjee said the results addressed several investor concerns, including the sustainability of backlog growth, its conversion into revenue amid data-center delays and the possibility of further capital raises.
"We got both better in-period execution and future-period bookings than anticipated. Check and check," analysts led by Jackson Ader at KeyBanc Capital Markets said.
Those results provided investors with evidence that Oracle’s huge backlog can translate into future revenue, but the recent market weakness suggests that financing requirements and the pace of AI development remain central to the stock’s outlook.
Analysts remain positive on Oracle’s outlook: should you buy?Despite the recent selloff, several analysts have maintained positive views following Oracle’s earnings report, and there has been no re-rating by analysts following concerns about an AI development slowdown.
According to Stocktwits, 35 of 43 analysts rate the stock Buy or higher.
The consensus price target is near $239, representing a 70% upside from current levels.
Citi reiterated its Buy rating, saying Oracle had “cleared the runway” for its upcoming Investor Day.
“Oracle delivered a solid fiscal first quarter that checked nearly every box and reinforces the bull case heading into Investor Day,” the analysts said.
Citi described Oracle’s fiscal 2027 outlook as “modest” and management’s framework as “conservative”, arguing that the scale of the first-quarter outperformance could leave room for upward revisions.
“Given the magnitude of fiscal first-quarter outperformance, we see a favorable setup for upward revisions at Investor Day and AI World,” the analysts added.
Barclays also raised its price target to $252 from $250 while maintaining an Overweight rating.
The firm said investors could be ready to reassess Oracle following the earnings report as growth momentum improves and financing uncertainty eases.
“The company’s growth inflected and should continue to accelerate from here,” Barclays said in a research note cited by TheFly.
Barclays also highlighted Oracle’s completion of its $20 billion at-the-market equity offering, which it said reduced uncertainty over how the company will fund its expansion.
Scotiabank maintained its Outperform rating, while Citizens analyst Patrick Walravens reiterated a Market Outperform rating and a $285 price target.
Oracle po dalším kole propouštění zdůraznila, že nechce po zaměstnancích „dělat víc s méně lidmi“ a bude dál investovat do AI a datových center. Společnost v uplynulém fiskálním roce zredukovala počet zaměstnanců o 21 000, tedy o 13 %. CFO Hilary Maxson uvedla, že firma musí pečlivěji vybírat, kam směřuje čas i peníze.
Beata Zawrzel/NurPhoto via Getty Images Oracle's new finance chief used her first companywide meeting to deliver a message to employees: Oracle doesn't want them "doing more with less."
Chief Financial Officer Hilary Maxson told employees on Tuesday they should be proud of the company's financial results and protect that success as the company grows, according to a recording reviewed by Business Insider.
The remarks came a day after Oracle began a new round of layoffs, following cuts earlier this year. The company's workforce declined by 21,000, or 13%, in the 2026 fiscal year that ended May 31, according to a recent filing.
"This means being thoughtful about where we spend our time and money," Maxson said. "I don't mean doing more with less, which is a phrase that I really, really don't like. It means simplifying processes that don't help customers and making clear choices on where we're going to use our resources where they have the greatest impact."
Maxson's remarks highlight one of the central challenges facing Oracle and its peers: investing aggressively in AI while maintaining financial discipline. Oracle has racked up tens of billions of dollars in debt as it expands its data centers and AI infrastructure. The latest workforce cuts are intended to reduce payroll to offset those costs, according to a person familiar with the strategy.
Oracle reported $28.5 billion in first-quarter capital expenditures, up from $8.5 billion a year earlier, and maintained its fiscal 2027 capital expenditure forecast at $90 billion to $95 billion.
Neither Maxson nor other executives addressed the layoffs directly during the roughly hourlong town hall. Instead, they repeatedly emphasized growth, customer demand, and the opportunities created by artificial intelligence.
"I'd ask you to keep asking a very simple question: How does the work that I'm doing help deliver a better outcome for a customer?" Co-CEO Mike Sicilia said, suggesting a mantra as Oracle starts its second quarter. "There's a lot of change around this, a lot going on in the world, and in moments like this, how we work together and how we show up for our customers and for each other matters most."
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Oracle Layoffs Artificial Intelligence More Enterprise Software Cloud Computing Exclusive
Společnost Oracle oznámila rekordní AI zakázky a meziroční růst cloudové infrastruktury o 121 %, ale akcie jsou letos stále níže o 25,66 % kvůli obavám z vysokých kapitálových výdajů a záporného volného peněžního toku 5 miliard USD v 1. fiskálním čtvrtletí.
Oracle just posted record AI bookings and cloud growth that should have sent shares soaring, yet the stock sits near a 52-week low. Something is broken in how the market is pricing this company, and the gap between its earnings…
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Oracle (NYSE:ORCL | ORCL Price Prediction) just delivered a fiscal Q1 that should have sent shares to new highs. Instead, the stock is trading like the AI trade is unraveling.
Cloud infrastructure revenue grew 121% year over year, remaining performance obligations sit at $664 billion, and management booked more than $30 billion of new AI contracts in a single quarter.
Yet shares are down 25.66% year to date. The question I want to answer: can Oracle really reach $350 per share in 2027?
Why Oracle Shares Are Stuck Despite Record Bookings The issue is the cash burn, not the underlying business. Oracle guided full-year fiscal 2027 capital expenditures of $90 billion to $95 billion and reported negative $5 billion of free cash flow in Q1 alone. That has spooked investors who bought this name when it was cash-generative software rather than a capex-heavy AI landlord.
The stock action reflects it. Shares are off 9.62% over the past week and 6.38% over the past month, with a brutal 52.86% drawdown over the past year.
A MarketWatch headline captured it directly: “Oracle shook off fears about AI spending, but its stock still loses ground.” With a beta of 1.732, this name amplifies every wobble in AI sentiment. That is the straightforward read.
Wall Street Sees 68% Upside. My Model Says Bigger The Street is loud on this one. 8 strong buys, 28 buys, 7 holds, and 1 sell with an average price target of $241.41. Our internal base case sits at $221, implying 47.06% upside, with a bull case at $333.39 and a bear case at $185.62. Confidence: 0.9, or high.
Here is my pushback. With 82% of analysts bullish and quarterly earnings growth of 54.5% year over year, the consensus target may still be too anchored to the pre-AI Oracle. Half of the $664 billion RPO is expected to convert to revenue over the next 36 months. Analysts are catching up to the story.
Path to $350 Per Share Now the math. Reaching $350 from today’s price of $143.50 would require a gain of 143.9%.
With forward EPS of $9.85, a price of $350 implies a forward P/E of 36x. Our base case of $221 already implies 19x, meaning $350 requires 17x of additional multiple expansion.
That is aggressive, but here is the case for it. GPU utilization is running at 97.9%, and renewals are pricing 20% above prior contracts. Multi-cloud database revenue grew 353% year over year.
On the call, management said, “The world’s a big place. There’s a lot of demand for this capacity.” If Oracle prints EPS closer to the FY2028 consensus of $10.97, the required multiple compresses fast.
The primary risk: a single missed data-center delivery, whether Wisconsin, New Mexico, or Shackleford, could stall the RPO conversion story. Oracle is now as much an AI infrastructure landlord as a software vendor, and the picks-and-shovels names behind that buildout are worth knowing (we profiled seven of them, from power to cooling, in a free report you can grab here).
Where Oracle Trades Today vs Its Earnings Power At $143.50 against forward EPS of $9.85, Oracle trades near 15x forward earnings. That is a discount to the S&P 500 and cheaper than most hyperscaler peers, despite 30% total revenue growth.
Shares sit closer to the 52-week low of $114.50 than the high of $325.79. Long-term holders have been rewarded, with a 314.55% 10-year return. The valuation gap between growth and price is the entire bull thesis.
Is $350 Realistic? My Verdict Reaching $350 requires a 143.9% gain and a re-rating to 36x forward earnings. That is a stretch. For it to happen, Oracle needs to convert RPO on schedule, keep OCI utilization above 95%, and show a credible glide path back to positive free cash flow. Sustained EPS beats through fiscal 2028 would do most of the heavy lifting.
What kills it: any capex overrun that forces an equity raise larger than the $20 billion ATM already completed. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how Oracle could reach $350 in 2027.
Contact [email protected] for any questions or corrections.
Oracle plánuje ve fiskálním roce 2027 získat zhruba 40 miliard USD z dluhu a kapitálu na financování datových center pro AI. Firma přitom v posledním čtvrtletí vykázala volný peněžní tok -5,4 miliardy USD a náklady na úroky jí vzrostly o 55 % na 1,4 miliardy USD.
Oracle is pouring tens of billions into AI datacenters faster than its own business can generate cash, and the gap between what it earns and what it spends is forcing a bet that could reshape the stock for years.
Oracle (NYSE:ORCL | ORCL Price Prediction) told investors it plans to raise approximately $40 billion in fiscal 2027 through a combination of debt and equity financing to fund its AI datacenter buildout. That figure, disclosed with the Q4 FY2026 earnings release filed June 10, 2026, is the price of admission to the AI cloud race Oracle now leads on paper. The following quarter made the case for demand.
Cloud infrastructure revenue rose 121% year over year, remaining performance obligations reached $664 billion, and management booked more than $30 billion in new AI cloud contracts in a single three-month stretch. But the same quarter revealed the mechanics of the trade. Capital expenditures ran to $28.5 billion, free cash flow was-$5.4 billion, and interest expense rose 55% to $1.4 billion.
If you own Oracle for the long haul, you have to decide whether demand grows into the concrete Oracle is pouring before borrowing costs and dilution overwhelm the payoff.
Forty Billion Reasons Oracle Needs Outside Capital Oracle disclosed the plan alongside its Q4 FY2026 outlook, and it stacks on top of financing Oracle already executed. In fiscal 2026, the company completed a $20 billion at-the-market equity issuance program and, in Q3 FY2026, raised $30 billion through investment-grade bonds and mandatory convertible preferred stock.
Oracle expects to complete the raise in fiscal 2027. That timing aligns with a spending plan management already outlined on the earnings call. Full-year capital expenditure guidance stands at $90 billion to $95 billion, with net cash CapEx of not more than $70 billion.
Compare that with Oracle’s own cash generation. Fiscal 2026 operating cash flow was $31.977 billion against fiscal 2026 capital expenditures of $55.663 billion. The gap between what the business throws off and what management wants to spend has to be closed with someone else’s money.
The demand behind the spending is real. Cloud infrastructure revenue grew 121% for the quarter, up from 93% in the prior quarter, and Oracle delivered 850 megawatts of AI capacity with more than 300,000 GPUs since the end of the prior quarter. GPU utilization ran at 97.9%, and GPUs coming up for renewal were renewed or resold at a 20% premium to prior contracts. Utilization at that level indicates capacity is being sold as fast as it comes online.
Bookings Are Real, So Is the Cash Burn Management said around half of RPO is expected to convert into sales over the next 36 months, which pushes much of the payoff into fiscal 2028 and beyond.
The customer base concentrates that risk. Cloud infrastructure growth is being driven by a small set of very large AI contracts, and CFO Hilary Maxson said each project is “by nature, a strong free cash flow generating project” that reaches “a free cash flow conversion ratio of something like 100% to post-tax EBITDA” after ramp.
That claim is credible, but it is a forward statement about assets that have not yet reached steady state.
Oracle’s legacy database and applications business threw off cash at high margins with little physical footprint. The AI infrastructure business is closer to a utility, with quarterly capital expenditures of $28.499 billion in the latest period and capital expenditures up 235.2% year over year. Software multiples do not usually apply to businesses that spend like this, and the suppliers of the power, cooling, and networking gear behind that spend are often the quieter beneficiaries (we pulled seven of them into a free report here: 7 Stocks Powering the AI Boom (That Aren’t Chipmakers)).
The single metric to watch is net cash CapEx against operating cash flow. Management guided net cash CapEx to not more than $70 billion for the full year, and operating cash flow ran at $23.10 billion in the quarter. If that spread narrows over the next several quarters, the self-funding story management described starts to hold. If it widens, the $40 billion raise will not be the last one.
Is ORCL Stock a Buy? You are being asked to underwrite three years of heavy capital spending on a bet that hyperscale AI demand does not blink.
The evidence points to caution. Demand is real, and operating momentum is visible in the reported results, but the capital burden is expanding faster than internal cash generation, and the stock has already given back 50.63% year over year as investors have started to price that in. Watch net cash CapEx against operating cash flow. That single spread is the tell on whether the $40 billion raise closes the funding gap or opens the door to the next one. It’s not a Buy yet for me.
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Oracle v 1. čtvrtletí zvýšila tržby o 30 % na 19,3 miliardy USD a cloudové tržby vyskočily o 62 % na 11,6 miliardy USD. Akcie ale brzdí rostoucí náklady na úroky ve výši 1,4 miliardy USD, meziročně o 55 %.
Oracle (ORCL -3.65%)'s stock was a hot buy not that long ago. It soared 58% in 2024 as hype around the tech company grew, driven by its importance to the growth opportunities related to artificial intelligence (AI). But over about two years, the stock has gone from boom to bust -- now back to around the levels it was at in September 2024.
Recently, however, the tech company may have given investors a reason to remain bullish, as it posted some strong quarterly earnings numbers. With a high growth rate and a reduced valuation, could Oracle's stock be overdue for a rally?
Image source: Getty Images.
Oracle's revenue soared 30% in Q1, but interest expenses surged higherThe database company is off to a strong start to its 2027 fiscal year, with its first-quarter revenue rising by 30% to $19.3 billion for the period ending Aug. 31, which beat analyst expectations. The big catalyst was its cloud business, where revenue soared a whopping 62% and totaled $11.6 billion. Its cloud infrastructure business experienced 121% growth as more companies migrate their operations to the cloud, and, with Oracle being a trusted name, it has benefited enormously.
The tech stock, however, isn't soaring on the results. Investors have been concerned about its high debt load, and that is evident with its high interest costs, which totaled $1.4 billion for the period, representing a year-over-year increase of 55%. Between a high debt load and significant exposure to OpenAI, which investors are growing more concerned about these days amid questions about its prospects for profitability, Oracle may simply not be doing enough to calm fears about its business. While investors may recognize that the business is doing well today, there is a nagging concern about what might happen in the future, as interest rates rise and OpenAI faces more competition.
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The stock isn't expensive, but it's still a risky optionIn just 12 months, Oracle's stock has lost about half of its value. It's a steep decline, effectively giving back the gains it had generated due to the AI hype; its share price is now right around the level it was at about two years ago.
Oracle's stock is trading at about 23 times its trailing profits, which is right in line with the S&P 500 average. While it may look cheaper these days, it may still not offer investors enough margin of safety to offset the risks associated with its high debt load and exposure to OpenAI.
I'd wait for a lower stock price before considering Oracle, because while the business is doing well today, there are still plenty of question marks about its future, making it a less-than-ideal investment right now, even at a reduced valuation.
Oracle Health spustila v USA Clinical AI Agent pro sestry, který pomocí hlasového ovládání a AI zrychluje dokumentaci i koordinaci péče. Firma uvádí, že její Clinical AI Agent už lékařům ušetřil více než 400 000 hodin.
Voice-forward chart navigation, AI-powered acute nursing summaries, and voice-enabled discrete charting help nurses spend more time delivering care
, /PRNewswire/ -- Oracle Health today announced the U.S. availability of Oracle Health Clinical AI Agent for nurses, helping alleviate documentation burden and streamline care coordination in inpatient settings. Embedded directly into Oracle Health Foundation EHR, the AI-powered capabilities combine voice-driven chart navigation and search, acute nursing summaries, and voice-enabled discrete charting to help nurses quickly find patient information, document care in near real time, and spend more time with patients.
"Nurses are the heart of patient care, yet too much of their day is spent on manual repetitive work, searching for information, documenting care, and coordinating across the care team," said Seema Verma, executive vice president and general manager, Oracle Health and Life Sciences. "Oracle Health Clinical AI Agent for nurses delivers quicker access to patient information and enables voice-powered documentation at the point of care. By reducing administrative work, we're helping nurses spend more time with patients while supporting coordination across the care team."
Throughout every shift, nurses move continuously between reviewing patient records, documenting care, and coordinating with other clinicians. Oracle Health Clinical AI Agent for nurses helps simplify these everyday responsibilities by making it easy to find relevant patient information, understand a patient's current condition, and complete documentation in near real time. Using natural language voice commands for chart navigation and search helps nurses quickly locate information across the patient record, while AI-powered acute nursing summaries provide concise overviews of a patient's history and current condition to help limit manual chart review. Voice-enabled discrete charting enables nurses to complete structured documentation in near real-time at the point of care, helping support timely documentation and care coordination.
Early adopters have noted the nursing capabilities' intuitive experience and its potential to help limit time spent on charting.
"As we've expanded the use of generative AI across our organization, Oracle Health has continued to listen to our feedback to help ensure nursing capabilities fit naturally into the flow of care," said Lynnette Clinton, chief information officer, BayCare Health System. "Helping our nurses complete documentation in real time has the potential to reduce after-shift charting, ease administrative burden, and give them more time to focus on patients."
Oracle Health Clinical AI Agent for nurses builds on Oracle Health's growing portfolio of AI capabilities designed to alleviate administrative burden across healthcare. The AI works to understand clinical meaning, share context across workflows, and collaborate in near real time to support intelligent automation while keeping clinicians in control. Since launching nearly two years ago, Oracle Health Clinical AI Agent clinical note capabilities have already saved physicians more than 400,000 hours across health organizations in the U.S., with Oracle now extending those AI capabilities to support nursing documentation and care coordination.
To learn more about Oracle's full suite of clinical, life sciences, and business applications, join us at the Oracle Health and Life Sciences Summit in Orlando, September 22-24, 2026. Register now.
About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.
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Oracle zahájila nové kolo propouštění, které má podle zpráv zasáhnout některé týmy ve dvouciferných procentech. Firma už letos snížila počet zaměstnanců o 21 000, tedy o 13 %.
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Oracle co-CEO Clay Magouyrk. Bloomberg/Getty Images Oracle has started a new round of layoffs, according to three people impacted and an email shared with Business Insider.
The layoffs had been expected to begin on Monday, according to a source with knowledge of the matter.
"After careful consideration of Oracle's current business needs, we have made the decision to eliminate your role as part of a broader organizational change," copies of layoff notification email viewed by Business Insider stated. "As a result, today is your last working day."
Business Insider last month reported that the company had drawn up plans for a new round of job cuts to reduce payroll as it racks up billions in debt to fund AI infrastructure.
The planned cuts reached double-digit percentages on some teams, according to an internal document.
On Monday, posts started appearing on LinkedIn, Reddit, and Blind from people claiming to have been impacted by the latest round of cuts.
This latest round of layoffs follows cuts earlier this year. The company's workforce declined by 21,000, or 13%, in the 2026 fiscal year that ended May 31, according to a recent filing. Oracle had around 141,000 employees before this current round of cuts, according to the company.
Oracle has racked up tens of billions of dollars in debt to build data centers, betting on increasing demand for AI. Oracle reported $28.5 billion in first-quarter capital expenditures, up from $8.5 billion a year earlier, and maintained its fiscal 2027 capital expenditure forecast at $90 billion to $95 billion.
Wall Street isn't convinced the bet will pay off, though the company's latest earnings report had some positive signs, including cloud growth.
An Oracle spokesperson did not immediately respond to requests for comment from Business Insider.
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We are grateful for your dedication, hard work, and the impact you have made during your time with us.
After signing your termination paperwork, you will be eligible to receive a severance package subject to the terms and conditions of the severance plan. You will receive an email from DocuSign to your Oracle email address with details on your severance and termination date.
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Oracle Layoffs Artificial Intelligence More Enterprise Software Cloud Computing Exclusive
Akcie Oracle v předobchodní fázi klesly o 3,55 % na 144,95 USD, protože investoři přehodnocují výhled výdajů na AI infrastrukturu. Jeff Kilburg ji ale označil za „essential“ akcii kvůli silné poptávce a rostoucímu backlogu.
Oracle Corp. (NYSE:ORCL) stock fell nearly 4% in Monday premarket trading as weakness across technology stocks weighed on sentiment. Nasdaq futures dropped 1.85%, while S&P 500 futures fell 0.77%.
The stock fell as investors reassessed the outlook for artificial intelligence infrastructure spending. The Financial Times reported that investors are concerned calls to slow AI development could eventually translate into lower infrastructure and capital spending.
Those concerns intensified after Anthropic CEO Dario Amodei called for leading AI companies to work together on managing the technology’s development and safety. OpenAI CEO Sam Altman and SpaceX (NASDAQ:SPCX) CEO Elon Musk supported the effort, according to the Financial Times.
Barclays strategist Emmanuel Cau said a greater focus on AI safety could raise questions about the pace of capital spending. Investors are also weighing what slower investment could mean for global growth and corporate earnings.
However, the premarket weakness comes as some investors remain bullish on Oracle’s longer-term artificial intelligence opportunity.
Oracle An ‘Essential’ AI Stock, Kilburg SaysKKM Financial founder Jeff Kilburg called Oracle an “essential” stock to own as the software giant expands its role in AI infrastructure.
Speaking on CNBC Friday, Kilburg pointed to Oracle’s latest quarterly results and growing backlog as evidence of strong demand.
“They beat on so many metrics,” Kilburg said. He highlighted remaining performance obligations, or RPO, which he said increased by about $26 billion.
Oracle shares initially jumped about 7.5% to 8% following the results, Kilburg said. However, the rally faded after the stock stalled around $164 to $166.
Kilburg attributed part of the reversal to heavy options activity. Traders had bought more calls than puts ahead of the report, raising expectations for a move toward $175. When the rally stalled, short-dated options activity helped drive the shares lower, he said.
Still, Kilburg said the longer-term investment case remains intact. “We believe it’s an essential name,” he told CNBC.
AI Opportunity Extends Beyond OpenAIKilburg also pointed to Oracle’s deep presence across Fortune 500 companies. Its software can be costly and difficult for customers to replace. That installed base also gives Oracle an opportunity to sell customers more AI computing capacity.
He also played down concerns about Oracle’s exposure to OpenAI.
Even if OpenAI were to falter, Kilburg argued that demand for computing infrastructure would remain. Another AI company could potentially use that capacity instead.
His comments underscore the broader investment thesis around Oracle. Individual AI winners may change, but demand for the infrastructure powering AI could remain strong.
Oracle Technical AnalysisOracle’s technical picture remains mixed. The stock is about 3% below its 20-day simple moving average of $149.38. However, it remains about 3% above its 50-day SMA of $140.68.
Longer-term signals remain bearish. Oracle trades about 11.7% below its 100-day SMA of $163.93 and 13.6% below its 200-day SMA of $167.64.
The relative strength index stands at 51.53. That is a neutral reading and suggests neither buyers nor sellers have a clear momentum advantage.
Meanwhile, the 20-day SMA remains above the 50-day SMA, supporting the near-term trend. However, the 50-day SMA remains below the 200-day SMA following a January death cross.
Oracle has fallen 50.26% over the past 12 months.
Key resistance stands near $159.50, while support is around $137.
Analyst OutlookOracle carries a Buy consensus rating and an average price forecast of $252.65.
On Sept. 11, Stifel maintained a Buy rating but lowered its price forecast to $200. TD Cowen maintained its Buy rating and $240 forecast. UBS maintained a Buy rating and raised its forecast to $250.
Oracle Benzinga Edge RankingsOracle’s Benzinga Edge rankings show a sharp divide between growth and market momentum. The stock scores 96.46 for Growth but just 6.8 for Momentum and 18.68 for Value.
The combination points to strong underlying growth metrics but weak stock-price momentum. A move above longer-term resistance could strengthen the technical picture. However, a break below $137 could increase downside risk.
Price ActionORCL Stock Price Activity: Oracle shares were down 3.55% at $144.95 during premarket trading on Monday, according to Benzinga Pro data.
Oracle ve fiskálním 1. čtvrtletí zvýšila tržby o 30 % na 19,35 miliardy USD a cloudové tržby o 62 % na 11,6 miliardy USD. Upravený EPS vzrostl o 30 % na 1,92 USD a firma zvýšila celoroční výhled.
Oracle (ORCL -1.74%) shares were unable to gather any momentum despite soaring revenue and a robust backlog. The stock is down around 50% over the past year, as investors continue to fret more about the company's capex spending than its growth.
With one of the best growth opportunities in the cloud computing space, let's see if now is the time to go all in on Oracle shares.
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AI infrastructure spending fears At one point last year, investors were celebrating Oracle's push to become a cloud leader, with the stock more than doubling in less than six months. However, that sentiment has done a complete 180-degree turn, with the stock round-tripping its gains.
At this point, the Oracle story largely centers around its cloud infrastructure buildout and associated growth. The company currently has a huge backlog, with $664 billion in remaining performance obligations (RPOs), a metric that measures the remaining value of its already-signed contracts with customers. These are generally non-cancelable contracts for artificial intelligence (AI) data centers it needs to build, and Oracle has turned to innovative methods to help fund its infrastructure buildout to reduce its own capex, including getting upfront payments and having customers buy their own hardware.
Its RPOs were up $209 billion year over year, and $26 billion sequentially. Oracle forecasted that it will spend between $90 billion and $95 billion in capex this year. However, it said net cash capex will be $70 billion or below.
While Oracle's data center capex is a lot less than the big three cloud providers of Amazon, Microsoft, and Alphabet, the company's balance sheet is not as strong and its cash flow is not as robust. However, its $23.1 billion in operating cash flow was a big jump from the $8.1 billion generated in Q1 of last year, and its total operating cash flow in fiscal 2026 was only $32 billion. Still, it spent $28.5 billion in capex in the quarter, so its free cash flow came to an outflow of $5.5 billion. To help pay for its investment, it sold $20 billion in stock in the quarter through an at-the-market equity program.
Oracle also carries a fairly heavy debt load, stemming from a past of large acquisitions and aggressively stock buybacks. It ended last quarter with $125.3 billion in debt against $37.1 billion in cash and marketable securities. The combination of its debt and current negative cash flow makes its AI infrastructure bet a riskier one versus its large cloud competitors.
Turning to its fiscal Q1 results, Oracle's revenue soared by 30% to $19.35 billion, which topped the $19.14 billion analyst consensus, as compiled by LSEG. Cloud revenue jumped 62% to $11.6 billion. Within the cloud segment, cloud infrastructure revenue surged by 121% to $7.4 billion while cloud application revenue rose by 10% to $4.2 billion. Software segment revenue, meanwhile, fell 3% to $5.6 billion.
Adjusted earnings per share (EPS) climbed 30% to $1.92. That easily topped the $1.74 analyst consensus.
Looking ahead, Oracle upped its full-year fiscal guidance, taking it from adjusted EPS of $8.05 on revenue of $90 billion, to adjusted EPS of $8.10 on revenue of "at least" $90 billion.
For its fiscal third quarter, it forecasted revenue would rise by between 30% to 34%, and for cloud revenue to soar by 65% to 71%. It projected its adjusted EPS will rise by 21% to 25% to a range of $1.85 to $1.93.
Image source: The Motley Fool.
Given its AI infrastructure investments and backlog, Oracle should see explosive revenue growth in the coming years. Given some of its unique contracts with pre-pay or bring-your-own-hardware stipulations, it probably would be in the stock's best interest if management went over its cloud economics. This is something that Amazon and Alphabet have done, and it could be reassuring to investors if the company was getting a quick payback on its investments.
From a valuation perspective, Oracle now trades at a forward price-to-earnings ratio of under 19 and below 14 times based on fiscal 2028 estimates, although you do need to remember its debt load and future negative free cash flow. I wouldn't be backing up the truck, but I think the stock is worth the risk of adding some shares here.
Oracle said Saturday that co-founder and Executive Chair Larry Ellison canceled a plan to sell up to 50 million Oracle shares, worth about $7.5 billion at Friday’s closing price.
Oracle disclosed in a regulatory filing Friday that Ellison had adopted the trading plan on June 22, and that it was scheduled to expire on Oct. 24.
Oracle did not say why Chair Larry Ellison canceled a plan to sell up to $7.5 billion of the company’s shares. AP “No Oracle stock was sold under that plan, and he has no other plans to sell any of his Oracle stock,” Oracle said Saturday.
Oracle’s stock has taken a beating this year on growing investor concerns over soaring capital expenditure that has pressured its free cash flow.
The shares are down nearly 23% year to date and were more than 18% below their closing level on June 18, the last trading day before Ellison adopted the plan.
Oracle did not give a reason for the cancellation of Ellison’s trading plan.
Oracle shares are down almost 23% so far this year, and 18% lower since Ellison adopted the plan to sell his shares in June. REUTERS Ellison, 82, served as Oracle’s CEO until 2014 and is the company’s largest shareholder, owning over 38% of the company, according to LSEG data.
Earlier in the week, Oracle had reported quarterly results that topped Wall Street estimates and a smaller cash burn than expected, easing some concerns about its debt-fueled spending spree and leading to a jump in the shares on Friday.
However, its stock later reversed course as analysts said a recovery in cash flow remained some way off.
The firm also announced restructuring costs, part of a plan that includes job cuts, will rise by about $700 million.
Oracle uvedla, že její flotila AI GPU běžela ve čtvrtletí na 97,9% využití. Zároveň tržby z cloudové infrastruktury meziročně vzrostly o 121 % na 7,4 miliardy USD.
Oracle (ORCL -1.74%) spent Thursday evening's earnings call putting numbers on something Nvidia (NVDA -0.03%) investors usually have to take on faith. The software and cloud giant delivered 850 megawatts of artificial intelligence (AI) capacity to customers in its fiscal first quarter of 2027 (the period ended Aug. 31). That hardware contained more than 300,000 graphics processing units (GPUs). And Oracle's GPU fleet ran at 97.9% utilization, meaning nearly every chip was busy serving customers.
Most of those chips are Nvidia's. Oracle's cluster design for its biggest AI deployments connects hundreds of thousands of Nvidia GPUs, and its largest planned builds target up to 800,000 of them.
So while Nvidia didn't report this week, a company installing its chips by the hundreds of thousands just showed what demand for them looks like.
Image source: Getty Images.
Deliveries nearly tripled, and the fleet stayed fullUnderscoring how fast Oracle is building, the 850 megawatts it delivered was almost triple the prior quarter's total -- and 73% of everything it delivered in all of fiscal 2026. The company's campus in Abilene, Texas, which serves OpenAI, received 131,000 GPUs in the quarter. And revenue followed the hardware: Cloud infrastructure revenue rose 121% year over year to $7.4 billion. That growth is an acceleration from 93% in the fiscal fourth quarter and 77% for fiscal 2026 as a whole.
To me, utilization is the number to hold onto. A fleet can run full because its owner stopped adding capacity. Oracle's ran 97.9% full while capacity arrived at a record pace -- demand absorbed the hardware as fast as Oracle could install it.
Even more, customers keep lining up ahead of the supply. Oracle closed more than $30 billion of new AI contracts in the quarter. Its remaining performance obligations (contracted revenue it hasn't yet delivered) reached $664 billion, up $209 billion year over year.
Four-year-old chips are repricing higher"Of all the GPUs that came up for renewal in Q1, that capacity was renewed or resold at a 20% premium to prior contracts," Oracle co-CEO Clay Magouyrk said on Thursday's call. "The majority of those GPUs are 4 years or older."
After all, computing hardware is supposed to get cheaper as it ages. GPUs that old predate Nvidia's Blackwell generation entirely, and with enough supply around, capacity like that would rent at a discount.
Instead, it repriced 20% higher. Prices tend to move that way when buyers can't get enough new hardware.
The revenue opportunity Nvidia sees per gigawatt of capacity is climbing a ladder of its own. A gigawatt of its older Hopper systems meant about $18 billion of revenue opportunity for Nvidia, chief financial officer Colette Kress said on the company's late-August earnings call. Blackwell runs about $25 billion, and the new Vera Rubin platform is about $40 billion.
Customers paying a premium to keep 4-year-old chips arguably won't balk at those step-ups.
Does one crowded fleet prove a shortage?Not on its own. Oracle's 97.9% covers one operator's fleet, not the industry's, and the company doesn't split the figure by chipmaker.
However, there's a second caveat. Oracle presells most of this capacity under long-term contracts (that $664 billion backlog). A full fleet partly reflects commitments customers made quarters ago.
But the seller's disclosures point the same way. Nvidia's revenue rose 106% year over year to $96.2 billion in its fiscal second quarter of 2027 (the period ended July 26). Data center revenue made up $89 billion of that.
Kress told analysts to expect about 70% revenue growth in fiscal 2028, with supply capping the figure. She also said Nvidia's compute was running fully utilized across every cloud it serves.
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A vendor's assurance like that is easy to discount. Oracle just published the decimal.
The scale fits, too. At Kress's figures, Nvidia's $89 billion data center quarter works out to very roughly 3.5 gigawatts of systems. Oracle alone took delivery of 850 megawatts -- about a fourth of that pace. The comparison is loose (megawatts include far more than chips, and Oracle buys from more than one vendor). But it shows how much of this build-out one customer can absorb.
So, does Oracle's quarter prove a worldwide shortage? Proof is too strong a word for one company's fleet. Ultimately, though, I think it's the best customer-side evidence yet that what limits Nvidia is manufacturing capacity rather than appetite.
Nvidia shares trade around $220 as of this writing, about 8% below their 52-week high of $236.54, at about 28 times earnings. For a business whose 4-year-old products are repricing higher, I think that's a fair price, and I'd buy the stock here. If a future quarter shows Oracle's old GPUs repricing lower instead of higher, that will be an early sign the shortage is easing. This one showed the opposite.
Larry Ellison přijal plán Rule 10b5-1, který může vést k prodeji až 50 milionů akcií Oracle za zhruba 7,5 miliardy USD. I po prodeji by si ponechal více než 40 % firmy.
Oracle (NYSE: ORCL) founder Larry Ellison has adopted a Rule 10b5-1 trading plan that could result in the sale of up to 50 million shares of the technology company.
According to a regulatory filing released on September 12, the plan was adopted on June 22 and remains in effect through October 24. Based on Oracle’s press-time share price of about $150, the authorized sale could be worth roughly $7.5 billion.
ORCL stock price chart. Source:Finbold The development is significant because Ellison, Oracle’s executive chairman and chief technology officer, has rarely sold large portions of his stake in the company.
Even if he sells all 50 million shares, he would still control about 1.1 billion Oracle shares, maintaining ownership of more than 40% of the company.
The newly disclosed Oracle 10b5-1 plan marks a notable shift for Ellison, who has traditionally held most of his Oracle position and relied on borrowing rather than stock sales to access liquidity.
Historically, his transactions have involved relatively small amounts of stock. As a result, the possibility of a multibillion-dollar sale stands out as one of the largest insider trading developments involving Oracle in recent years.
While Rule 10b5-1 plans are commonly used by executives to schedule stock sales in advance and avoid accusations of trading on nonpublic information, investors often monitor them closely for signals about insider sentiment.
Notably, large insider sales can pressure a stock, especially when they involve a founder and major shareholder.
Investors will watch upcoming Form 4 filings to see whether Ellison sells shares under the plan. However, he would still retain one of the largest founder stakes in the technology sector, keeping his interests aligned with shareholders.
The potential sale comes as Oracle continues an aggressive push into artificial intelligence infrastructure and cloud computing.
Oracle stock fundamentals In this line, Oracle is experiencing some of the fastest growth in its history, fueled by surging demand for AI infrastructure and cloud services.
In its latest quarter, revenue rose 30% year over year to $19.3 billion, while total cloud revenue jumped 62% to $11.6 billion. The company’s flagship Oracle Cloud Infrastructure (OCI) business grew 121% to $7.4 billion, reflecting strong enterprise demand for AI computing capacity.
Oracle also signed more than $30 billion in new AI cloud contracts during the quarter, helping push its remaining performance obligations (RPO) to a record $664 billion, up $209 billion from a year earlier.
Despite the strong performance, Oracle’s AI expansion comes with high costs. The company has increased borrowing and plans additional fundraising to support large-scale data center investments.
Featured image via Shutterstock
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Oracle uvedla, že kapacita GPU, která v Q1 přišla na obnovu, byla obnovena nebo znovu prodána s 20% prémií vůči původním smlouvám. Firma tak vidí delší životnost a rostoucí hodnotu své AI kapacity.
Oracle (ORCL -1.74%) reported its fiscal first-quarter results (the period ended Aug. 31, 2026) after the market closed Thursday, and investors couldn't seem to make up their minds. Shares jumped more than 8% early Friday before giving nearly all of it back.
The stock traded around $154 as of this writing, up less than 1% for the day. Its 52-week high is $329.50, more than double today's price.
The report had plenty of big numbers. Revenue came in about 30% higher than a year ago, at $19.3 billion, and management raised its full-year earnings outlook. But to me, the most important thing said Thursday was a disclosure from co-CEO Clay Magouyrk about what happens when Oracle's early artificial intelligence (AI) contracts expire. The capacity is rerenting at higher prices.
Image source: Getty Images.
Old chips are earning more, not lessThe bear case against AI infrastructure rests on a simple worry: The graphics processing units (GPUs) filling data centers like Oracle's could lose their earning power within a few years, before the spending behind them ever pays off. On Thursday's earnings call, Magouyrk gave the strongest answer to that worry Oracle has offered yet.
"Of all the GPUs that came up for renewal in Q1, that capacity was renewed or resold at a 20% premium to prior contracts," he said. "The majority of those GPUs are 4 years or older. We see a long useful life with increasing value for the AI capacity we are deploying."
In other words, Oracle's oldest chips aren't aging out of the fleet. They are earning more than they did under their original contracts. And if that pattern holds, the hardware could keep producing revenue for longer than skeptics seem to assume. Every extra year of earning power improves the return on each dollar Oracle spends.
Demand supports the claim. After all, the company booked more than $30 billion of new AI contracts during the quarter, pushing remaining performance obligations (contracted revenue the company hasn't yet earned) to $664 billion.
An accelerating quarterShowing how quickly the AI business is scaling, Oracle's cloud infrastructure revenue rose 121% year over year to $7.4 billion in fiscal Q1, faster than the fiscal fourth quarter's 93%. Across all of fiscal 2026, the rate was 77%. Management now expects revenue of at least $90 billion this fiscal year and raised its guidance for non-GAAP (adjusted) earnings per share to $8.10, up from $8.05 in June. Growth like that is what the stock's believers have been paying for, of course. The harder part is what all of it costs.
So where's the profit?Capital expenditures reached $28.5 billion in the quarter (more than the $21.2 billion Oracle spent in all of fiscal 2025), and free cash flow was negative $5.4 billion. To help pay for the build-out, the company sold the full $20 billion of stock under its at-the-market program during the quarter, adding to its share count.
The margin payoff, however, hasn't arrived. GPU utilization was 97.9% in the quarter, according to Magouyrk, and renewal prices are rising. Yet chief financial officer Hilary Maxson said gross margin declined as expected as new data centers ramp up, and that Oracle still expects $90 billion to $95 billion in capital spending this fiscal year.
Lower operating costs did the offsetting for now. Non-GAAP operating income rose 31% year over year, almost exactly in line with revenue.
And the chips renewing at a premium today are the small, early slice of the fleet. Nearly all of the new spending is buying new-generation capacity, and its own renewal test may be years away.
Premium Feature
Moneyball Superscore
75/100
Today's Change
(
-1.74
%) $
-2.66
Current Price
$
150.28
Still, the valuation has deflated along with the price. At around $154, the stock costs about 19 times the $8.10 in earnings per share management now expects -- at its 52-week high, it fetched roughly 41 times those same expected earnings.
So, should investors buy the stock on that disclosure? I don't think so -- not yet.
In short, the renewal pricing is arguably the most convincing answer the company has given to the fear that AI hardware wears out before it pays for itself. But one quarter of renewals on a small early fleet isn't proof the model works at the scale Oracle is now spending, and I'm not buying the stock at today's price.
If those 20% premiums start showing up as an expanding gross margin while the spending plan holds, I'd give the stock another look. That evidence isn't here yet.
Oracle uvedla, že nové AI kontrakty za více než 30 miliard USD nevyžadují dodatečný kapitál ani hotovost. Firma zároveň čeká, že zhruba polovina RPO se promění ve výnosy během příštích 36 měsíců.
Oracle Corp. (NYSE:ORCL) posted record revenue Thursday, but the more revealing numbers came from how the company is paying for its AI buildout.
ORCL stock is moving after earnings. See the real-time price action here. CFO Hilary Maxson told analysts that remaining performance obligations, or RPO, increased $26 billion from Q4. She was quick to explain the mechanics behind that growth: The vast majority of the new contracts were via prepay or bring-your-own hardware, so will not require incremental capital from Oracle.
She added that the new RPO will not impact capex or revenues until fiscal 2028 or beyond.
Co-CEO Clay Magouyrk reinforced the point on the infrastructure side, noting: “We closed more than $30 billion of additional AI contracts in Q1 without requiring additional capital from Oracle.”
Asked in the Q&A how the arrangements actually work, Magouyrk didn’t detail the structure, pointing back to his earlier framing: “We said it doesn’t require additional cash from Oracle.”
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He described the broader strategy as ongoing rather than new, telling Deutsche Bank’s Brad Zelnick that Oracle is constantly finding interesting ways to fund the business and that new capacity does not have to be Oracle capex.
Maxson went furthest in describing where this leads. Asked about free cash flow timing, she said completed projects are delivering a free cash flow conversion ratio of "something like 100% to post-tax EBITDA" shortly after ramping up, adding that the business, by nature, is somewhat “self-funding” at some point.
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The numbers behind those characterizations are important. Maxson disclosed that Oracle’s capex for the quarter was $28 billion, resulting in negative free cash flow of $5 billion, while full-year guidance holds at $90 billion-$95 billion in capex, with no more than $70 billion in net cash capex.
Management still expects around half of Oracle’s RPO to convert into sales over the next 36 months — a long runway resting on prepay commitments and bring-your-own-hardware deals that shift financing risk onto customers, suppliers and lessors rather than eliminating it.
ORCL Stock Price Activity: Oracle stock was up 0.55% at $153.78 at the time of publication Friday, according to data from Benzinga Pro.
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Photo: Dragos Asaftei / Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Oracle za 1. čtvrtletí překonala odhady a pro rok 2027 míří na nejméně 90 miliard USD tržeb a upravený EPS 8,1 USD. RPO vzrostly meziročně o 46 % a cloudová infrastruktura o 120 %.
Buy Oracle (ORCL). Q1 beat plus 2027 guide ($90B+ revenue, $8.1 adjusted EPS) and a 46% jump in remaining performance obligations signal real AI workload demand. Cloud infrastructure growth is still triple-digit, and the stock is down 35% from its high—so the market is already discounting debt/FCF worries. Jefferies’ $290 target implies ~80% upside, with a long-term $400 path if earnings power hits management’s $20 level.
Key Risk: AI cloud spending slows or ROI disappoints, causing RPO growth to roll over and forcing Oracle to spend more while free cash flow stays weak.
Buy MSFT/AMZN/GOOGL basket
Buy the tier-1 AI infrastructure leaders: Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOGL). The article’s core point is that these firms have stronger balance sheets, better core multiples, and deeper market penetration—so they can fund AI capex without spooking debt markets. If Oracle’s valuation is pressured by credit/FCF concerns, the relative winners are the hyperscalers with the cleanest funding profile and the most embedded distribution.
Key Risk: AI demand growth decelerates across the whole sector, hitting hyperscaler capex returns and compressing multiples at the same time.
Jefferies’ senior analyst Brent Thill admits that there “wasn’t any issue” in Oracle’s ORCL fiscal Q1 earnings, but the company isn’t one of his top three AI infrastructure picks.
Oracle posted a better-than-expected Q1 release and guided for $8.1 a share of earnings (adjusted) on at least $90 billion in revenue for 2027 – both ahead of Street estimates.
The tech giant continues to capitalize on explosive demand for artificial intelligence (AI) workloads, yet Oracle shares are down more than 35% from their recent high.
In a post-earnings interview with CNBC, Thill touted the firm’s remaining performance obligations (RPO), which rose 46% year over year.
A 120% growth in Oracle’s cloud infrastructure business throws concerns of AI capex and no ROI “right out the window,” he noted.
The Jefferies analyst maintains a Buy rating on ORCL shares – with a bullish $290 price objective indicating potential upside of an exciting 80% from here.
And since management is calling for $20 in earnings power three years out, Thill actually finds it reasonable to expect this AI infrastructure stock to be worth $400 over the long-term.
Despite Oracle’s impressive momentum, Thill bluntly positioned the company in the “tier 2” group among major cloud infrastructure providers.
Speaking with CNBC, he explicitly ranked three megacap rivals, Microsoft, Amazon, and Alphabet, ahead of Oracle as primary long-term holdings.
According to the Jefferies analyst, these tier-1 giants benefit from stronger balance sheets, vastly superior core business multiples, and deeper market penetration.
Unlike Oracle, which entered the cloud buildout phase with a lower structural valuation multiple, the primary cloud triad possesses pristine financial flexibility to fund ongoing infrastructure builds without spooking debt markets.
In short, while Oracle stock remains a key ecosystem participant, he views the firm’s weaker credit rating due to debt burden and negative free cash flow ($5.4 billion in Q1) as reasons enough to put MSFT, GOOGL, and AMZN ahead of ORCL.
Ultimately, Oracle’s latest financial report reinforces its position as one of the elite five mega-scale infrastructure builders powering the modern generative AI era.
The print demonstrated that its “double-digit” growth in legacy software paired with “triple-digit” expansion in cloud infrastructure remains intact.
Though concerns over debt loads and concentration risks involving partners like OpenAI continue to overhang valuation, Brent Thill contends that much of this negativity is already fully priced into the stock.
For tactical investors, ORCL stock offers an intriguing, potentially discounted opportunity, even if tier-1 hyperscalers remain Jefferies' choice for core cloud portfolios.
Note that Oracle also currently pays a dividend yield of 1.31%, which further improves its appeal for the longer-term.
Oracle (ORCL - Free Report) came out with quarterly earnings of $1.92 per share, beating the Zacks Consensus Estimate of $1.74 per share. This compares to earnings of $1.47 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +10.35%. A quarter ago, it was expected that this software maker would post earnings of $1.96 per share when it actually produced earnings of $2.11, delivering a surprise of +7.65%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Oracle, which belongs to the Zacks Computer - Software industry, posted revenues of $19.35 billion for the quarter ended August 2026, surpassing the Zacks Consensus Estimate by 1.11%. This compares to year-ago revenues of $14.93 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Oracle shares have lost about 17.1% since the beginning of the year versus the S&P 500's gain of 11.6%.
What's Next for Oracle?While Oracle has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Oracle was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.91 on $21.23 billion in revenues for the coming quarter and $8.05 on $89.79 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Software is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Progress Software (PRGS - Free Report) , another stock in the same industry, has yet to report results for the quarter ended August 2026.
This business software maker is expected to post quarterly earnings of $1.49 per share in its upcoming report, which represents a year-over-year change of -0.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Progress Software's revenues are expected to be $247.16 million, down 1.1% from the year-ago quarter.
Oracle ponechala výhled kapitálových výdajů na fiskální rok 2027 na 90 až 95 miliardách USD a oznámila 121% růst tržeb z cloudové infrastruktury. Akcie po výsledcích vzrostly o 7 %.
Oracle. Bloomberg/Getty Images Oracle is holding the line on its data center spending forecast.
On Thursday, Oracle reported $28.5 billion in first-quarter capital expenditures, up from $8.5 billion a year earlier. It kept its fiscal 2027 capital expenditure forecast at $90 billion to $95 billion, including data center spending. Its capex forecast has not changed from the guidance it first issued in June.
Many major cloud companies have continued to raise their AI spending forecasts as they race to build more data centers and expand AI capacity — except Microsoft, which kept its capex forecast unchanged in July and also saw its stock soar after reporting earnings.
Asked on the earnings call how long Oracle will continue its heavy AI infrastructure spending, co-CEO Clay Magouyrk instead focused on how the company finances those projects.
"We have to separate out in our minds what Oracle spends as capex directly, uncouple that directly from how we think about how the business can grow," he said.
Oracle shares were up 7% after the company reported 121% growth in cloud infrastructure revenue in its first-quarter earnings release, apparently easing Wall Street fears about whether data center spending would translate to sales.
Oracle has borrowed tens of billions of dollars to build data centers and buy chips, and it has been under massive pressure to balance that spending with Wall Street's profitability expectations.
Oracle reported $55.7 billion in capex, including new data centers, in its 2026 fiscal year.
Oracle has developed several financing models, including supplier financing arrangements, customer prepayments, and "bring your own hardware" deals in which customers purchase hardware while Oracle provides the cloud infrastructure and operations.
Business Insider reported last month that Oracle had drawn up plans for a new round of job cuts to reduce payroll as it racks up billions in debt to fund AI infrastructure.
Alphabet and Tesla recently increased their capex projections, sending their stocks tumbling in July. Meta narrowed its own capex forecast range.
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Oracle Earnings Cloud Computing More Artificial Intelligence Enterprise Software
Oracle zveřejnila výsledky za 1. čtvrtletí fiskálního roku 2027. V konferenčním hovoru vystoupili CEO Mike Sicilia, CEO Clay Magouyrk a CFO Hilary Maxson.
Ken Bond - Senior Vice President of Investor Relations
Hilary Maxson - Chief Financial Officer
Mike Sicilia - Chief Executive Officer & Director
Clay Magouyrk - Chief Executive Officer & Director
Conference Call Participants
Brad Zelnick - Deutsche Bank AG, Research Division
Sitikantha Panigrahi - Mizuho Securities USA LLC, Research Division
Raimo Lenschow - Barclays Bank PLC, Research Division
Mark Moerdler - Bernstein Institutional Services LLC, Research Division
John DiFucci - Guggenheim Securities, LLC, Research Division
Brent Thill - Jefferies LLC, Research Division
S. Kirk Materne - Evercore ISI Institutional Equities, Research Division
Presentation
Operator
Good day, everyone, and welcome to the Oracle Corporation First Quarter Fiscal Year 2027 Earnings Call. Just a reminder that this call is being recorded. [Operator Instructions]
I would now like to hand the conference over to Mr. Ken Bond, Head of Investor Relations. Please go ahead, sir.
Ken Bond
Senior Vice President of Investor Relations
Thank you, Miriam, and good afternoon, everyone, and welcome to Oracle's First Quarter Fiscal Year 2027 Earnings Conference Call. On the call today are Chief Executive Officer, Mike Sicilia; Chief Executive Officer, Clay Magouyrk; and Chief Financial Officer, Hilary Maxson. A copy of the press release, including financial results, tables and supplemental financial metrics and guidance is now available on our Investor Relations website. Also available on our website is the slide deck that will be used in this call and a GAAP to non-GAAP reconciliation.
As a reminder, today's discussion will include forward-looking statements, and we will discuss some important factors relating to our business. These forward-looking statements are also subject to risks and uncertainties that may cause actual results to differ materially from the statements being made today. As a result, we caution you from placing undue reliance on these forward-looking statements, and we encourage
Oracle oznámila za první čtvrtletí tržby 19,3 miliardy USD, což je o 30 % více, tažené cloudovými tržbami. Cloud Infrastructure vzrostl o 121 % na 7,4 miliardy USD.
Q1 GAAP Earnings per Share up 55% in USD and up 54% in constant currency to $1.56, non-GAAP Earnings per Share up 30% in USD and constant currency to $1.92. Record Q1 Total Revenues up 30% in USD and constant currency to $19.3 billion. Record Q1 Total Cloud Revenues up 62% in USD & up 61% in constant currency to $11.6 billion. Q1 Cloud Infra (IaaS) Revenue up 121% in USD & up 120% in constant currency to $7.4 billion. Q1 Cloud Apps (SaaS) Revenue up 10% in USD and constant currency to $4.2 billion. Remaining Performance Obligations or RPO up $209 billion year-over-year to $664 billion , /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today announced Q1 FY27 results with strong revenue growth. Total quarterly revenues increased 30% to $19.3 billion, reflecting strong execution in our infrastructure business, with the delivery of 850MW additional datacenter capacity. Cloud revenues (IaaS + SaaS) increased 62% to $11.6 billion, driven by 121% growth in Cloud Infrastructure (IaaS), and 10% growth in Cloud Applications (SaaS). Software revenues were down 3% to $5.5 billion, reflecting our customers' continuing migration from on-premises software to the Cloud. Services revenues were $1.4 billion, up 5%, and Hardware revenues were $0.8 billion, up 15%.
Oracle generated Q1 GAAP operating income of $6.7 billion, up 57%, while non-GAAP operating income rose to $8.2 billion, up 31%, driven by continued broad-based demand in Cloud Infrastructure and Cloud Applications. GAAP net income available to common shareholders reached $4.7 billion, up 60%, and non-GAAP net income available to common shareholders grew to $5.8 billion, up 34%. Q1 GAAP earnings per share increased to $1.56, up 55%, and non-GAAP earnings per share climbed to $1.92, up 30%.
Oracle's strong operating income translated to a record Q1 operating cash flow of $23 billion, up 184%. Free cash flow was negative $5 billion for Q1 as Oracle continued to execute on investments to support the growth of its Cloud Infrastructure business.
Remaining Performance Obligations
Customer demand for AI Cloud Training and Inferencing Services continues to grow faster than supply. Oracle booked more than $30 billion of additional AI cloud contracts in Q1 increasing its RPO to $664 billion. Based on the structuring of those new contracts, the Company confirms there is no incremental impact on its plans to raise capital. Since the end of Q4, Oracle also delivered more than 300,000 GPUs to its AI Cloud customers and almost triple the capacity delivered in Q4 FY26.
Capital Investment Program and Capital Funding
During Q1 FY 2027, Oracle successfully completed the sale of $20 billion of common stock (before commissions) through an At-the-Market (ATM) equity program, as part of its previously disclosed capital investment program.
Guidance for Q2 FY 2027
Oracle is providing the following forward-looking guidance for Q2 FY 2027:
Total revenues are expected to grow between 30% and 34% in constant currency and USD. Total Cloud revenue is expected to grow between 64% and 70% in constant currency and between 65% and 71% in USD. Non-GAAP earnings per share is expected to be between $1.83 and $1.91 in constant currency and between $1.85 and $1.93 in USD, which represents growth of 19% to 23% in constant currency and 21% to 25% in USD excluding a one-time gain from Q2 FY20261. Guidance for Full FY 2027
For fiscal year 2027, we now expect total revenue to be at least $90 billion, and non-GAAP EPS to be at $8.10.
New Oracle AI Data Platform Automatically Generates Enterprise Ontology
Virtually all of Oracle's enterprise customers want to use AI to reason on their private data and to use AI agents to automate their business processes. To do this efficiently, customers must first precisely describe the semantic details of their private data and business processes in an Enterprise Ontology (a model defining the core concepts, relationships and rules of the business). Palantir pioneered the use of AI on private enterprise data by carefully crafting Enterprise Ontologies for each of their customers. The new Oracle AI Data Platform fully automates the creation of Enterprise Ontologies—making it inexpensive, easy and fast and for any enterprise to use the most advanced AI models to reason on their private data and automate their business processes.
New 100% Agentic AI Health Care Management System for Hospitals and Clinics
Oracle's AI Health Care Management and Electronic Health Records system is an all-new 100% Agentic system made up of a collection of AI agents for every medical specialty from General Medicine to Oncology to Radiology. These specialized AI agents assist medical professionals in diagnosing and treating their patients—leading to better quality of care and better outcomes. AI is on the brink of making quality healthcare accessible to more people throughout the world.
Common Stock Quarterly Dividend
The board of directors declared a quarterly cash dividend of $0.50 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on October 9, 2026, with a payment date of October 23, 2026.
Footnote
1 – Q2 FY26 results included a one-time net investment gain from the sale of Oracle's interest in Ampere. Including the investment gain, Q2 FY27 non-GAAP earnings per share is expected to decline between -19% and -15% in constant currency and decline between -18% and -14% in USD.
Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website at www.oracle.com/investor/.
About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.
Trademarks
Oracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing.
"Safe Harbor" Statement: Statements in this press release relating to future plans, expectations, beliefs, intentions and prospects, including statements regarding the anticipated benefits and future use cases for AI, expected future revenues, cloud revenue growth, earnings per share, and future dividend payments are "forward-looking statements" and are subject to material risks and uncertainties. Risks and uncertainties that could affect our current expectations and our actual results, include, among others: our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services, including our AI products; our AI products not operating as anticipated; our ability to successfully execute our Oracle Cloud strategy; our ability to anticipate, plan for, secure and manage datacenter capacity; our management of complex cloud and hardware offerings, including the sourcing of technologies and technology components such as graphic processing units; significant coding, manufacturing or configuration errors in our offerings; risks associated with acquisitions, joint ventures and strategic alliances; business volatility and risks associated with government contracting; economic, political and market conditions, including tariffs and trade wars; information technology system failures, privacy and data security concerns; cybersecurity breaches; disruptions from our period workforce restructurings; unfavorable legal proceedings, government investigations, and complex and changing laws and regulations, including healthcare regulations. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on the Oracle Investor Relations website at www.oracle.com/investor/. All information set forth in this press release is current as of September 10, 2026. Oracle undertakes no duty to update any statement in light of new information or future events.
ORACLE CORPORATION
Q1 FISCAL 2027 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
Three Months Ended August 31,
% Increase
% Increase
(Decrease)
2026
% of
2025
% of
(Decrease)
in Constant
Revenues
Revenues
in US $
Currency (1)
REVENUES
Cloud
$ 11,607
60 %
$ 7,186
48 %
62 %
61 %
Software
5,550
29 %
5,721
38 %
(3 %)
(3 %)
Hardware
774
4 %
670
5 %
15 %
16 %
Services
1,414
7 %
1,349
9 %
5 %
5 %
Total revenues
19,345
100 %
14,926
100 %
30 %
30 %
OPERATING EXPENSES
Cloud and software
6,400
33 %
3,607
24 %
77 %
78 %
Hardware
281
2 %
178
1 %
58 %
57 %
Services
1,052
5 %
1,099
7 %
(4 %)
(4 %)
Sales and marketing
1,811
9 %
2,063
14 %
(12 %)
(12 %)
Research and development
2,401
12 %
2,491
17 %
(4 %)
(3 %)
General and administrative
376
2 %
376
2 %
0 %
0 %
Amortization of intangible assets
202
1 %
420
3 %
(52 %)
(52 %)
Restructuring and other
94
1 %
415
3 %
(77 %)
(77 %)
Total operating expenses
12,617
65 %
10,649
71 %
18 %
19 %
OPERATING INCOME
6,728
35 %
4,277
29 %
57 %
57 %
Interest expense
(1,428)
(8 %)
(923)
(6 %)
55 %
55 %
Non-operating income, net
307
2 %
73
0 %
323 %
331 %
INCOME BEFORE INCOME TAXES
5,607
29 %
3,427
23 %
64 %
63 %
Provision for income taxes (2)
847
4 %
500
3 %
69 %
69 %
NET INCOME
$ 4,760
25 %
$ 2,927
20 %
63 %
62 %
Preferred stock dividends
81
-
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
$ 4,679
$ 2,927
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS:
Basic
$ 1.58
$ 1.04
Diluted
$ 1.56
$ 1.01
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic
2,966
2,826
Diluted
3,000
2,909
(1)
We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2026, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the three months ended August 31, 2026 compared with the corresponding prior year period decreased our total operating expenses by 1 percentage point.
(2)
Provision for income taxes for the first quarter of fiscal 2026 includes the impact of the U.S. One, Big, Beautiful Bill Act, which was signed into law on July 4, 2025.
ORACLE CORPORATION
Q1 FISCAL 2027 FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)
Three Months Ended August 31,
% Increase (Decrease)
in US $
% Increase (Decrease) in
Constant Currency (2)
2026
2026
2025
2025
GAAP
Non-GAAP
GAAP
Non-GAAP
GAAP
Adj.
Non-GAAP
GAAP
Adj.
Non-GAAP
TOTAL REVENUES
$ 19,345
$ -
$ 19,345
$ 14,926
$ -
$ 14,926
30 %
30 %
30 %
30 %
TOTAL OPERATING EXPENSES
$ 12,617
$ (1,423)
$ 11,194
$ 10,649
$ (1,959)
$ 8,690
18 %
29 %
19 %
29 %
Stock-based compensation (3)
1,127
(1,127)
-
1,124
(1,124)
-
0 %
*
0 %
*
Amortization of intangible assets (4)
202
(202)
-
420
(420)
-
(52 %)
*
(52 %)
*
Restructuring and other
94
(94)
-
415
(415)
-
(77 %)
*
(77 %)
*
OPERATING INCOME
$ 6,728
$ 1,423
$ 8,151
$ 4,277
$ 1,959
$ 6,236
57 %
31 %
57 %
31 %
OPERATING MARGIN %
35 %
42 %
29 %
42 %
612 bp.
35 bp.
597 bp.
27 bp.
INCOME TAX EFFECTS (5)
$ 847
$ 344
$ 1,191
$ 500
$ 603
$ 1,103
69 %
8 %
69 %
8 %
NET INCOME
$ 4,760
$ 1,079
$ 5,839
$ 2,927
$ 1,356
$ 4,283
63 %
36 %
62 %
36 %
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
$ 4,679
$ 1,079
$ 5,758
$ 2,927
$ 1,356
$ 4,283
60 %
34 %
59 %
34 %
DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
$ 1.56
$ 1.92
$ 1.01
$ 1.47
55 %
30 %
54 %
30 %
DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
3,000
-
3,000
2,909
-
2,909
3 %
3 %
3 %
3 %
(1)
This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.
(2)
We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2026, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.
(3)
Stock-based compensation was included in the following GAAP operating expense categories:
Three Months Ended
Three Months Ended
August 31, 2026
August 31, 2025
GAAP
Adj.
Non-GAAP
GAAP
Adj.
Non-GAAP
Cloud and software
$ 134
$ (134)
$ -
$ 156
$ (156)
$ -
Hardware
6
(6)
-
7
(7)
-
Services
51
(51)
-
49
(49)
-
Sales and marketing
171
(171)
-
177
(177)
-
Research and development
667
(667)
-
647
(647)
-
General and administrative
98
(98)
-
88
(88)
-
Total stock-based compensation
$ 1,127
$ (1,127)
$ -
$ 1,124
$ (1,124)
$ -
(4)
Estimated future annual amortization expense related to intangible assets as of August 31, 2026 was as follows:
Remainder of fiscal 2027
$ 529
Fiscal 2028
694
Fiscal 2029
620
Fiscal 2030
582
Fiscal 2031
377
Fiscal 2032
182
Thereafter
43
Total intangible assets, net
$ 3,027
(5)
Income tax effects were calculated reflecting an effective GAAP tax rate of 15.1% and 14.6% in the first quarter of fiscal 2027 and 2026, respectively, and an effective non-GAAP tax rate of 16.9% and 20.5% in the first quarter of fiscal 2027 and 2026, respectively. The difference in our GAAP and non-GAAP tax rates in each of the first quarters of fiscal 2027 and 2026 was primarily due to the net tax effects related to stock-based compensation expense, amortization of intangible assets and restructuring and other expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure; and, for the first quarter of fiscal 2026, also due to the impact of the U.S. One, Big, Beautiful Bill Act (refer to Appendix A for additional information).
*
Not meaningful
ORACLE CORPORATION
Q1 FISCAL 2027 FINANCIAL RESULTS
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in millions)
August 31,
May 31,
2026
2026
ASSETS
Current Assets:
Cash and cash equivalents
$ 36,369
$ 31,289
Marketable securities
708
605
Trade receivables, net
11,394
10,385
Prepaid expenses and other current assets
7,159
4,288
Total Current Assets
55,630
46,567
Non-Current Assets:
Property, plant and equipment, net
127,845
99,957
Operating lease right-of-use assets
33,967
29,690
Goodwill
62,267
62,261
Deferred tax assets
11,625
11,541
Other non-current assets
11,925
11,743
Total Non-Current Assets
247,629
215,192
TOTAL ASSETS
$ 303,259
$ 261,759
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes payable and other borrowings, current
$ 7,625
$ 7,199
Accounts payable
11,063
10,977
Accrued compensation and related benefits
1,760
2,225
Deferred revenues
14,686
9,916
Other current liabilities
12,380
11,447
Total Current Liabilities
47,514
41,764
Non-Current Liabilities:
Notes payable and other borrowings, non-current
117,712
122,342
Income taxes payable
12,060
11,771
Operating lease liabilities
30,594
26,648
Other non-current liabilities
28,183
16,178
Total Non-Current Liabilities
188,549
176,939
Stockholders' Equity
67,196
43,056
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$ 303,259
$ 261,759
ORACLE CORPORATION
Q1 FISCAL 2027 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions)
Three Months Ended August 31,
2026
2025
Cash Flows From Operating Activities:
Net income
$ 4,760
$ 2,927
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
3,156
1,351
Amortization of intangible assets
202
420
Deferred income taxes
(73)
515
Stock-based compensation
1,127
1,124
Other, net
(4)
164
Changes in operating assets and liabilities:
Increase in trade receivables, net
(1,009)
(245)
Decrease in prepaid expenses and other assets
114
59
Decrease in accounts payable and other liabilities
(1,076)
(334)
Increase (decrease) in income taxes payable
546
(391)
Increase in deferred revenues from customer prepayments with significant financing component
11,363
-
Increase in other deferred revenues
3,997
2,550
Net cash provided by operating activities
23,103
8,140
Cash Flows From Investing Activities:
Purchases of marketable securities and other investments
(306)
(471)
Proceeds from sales and maturities of marketable securities and other investments
225
255
Capital expenditures
(28,499)
(8,502)
Net cash used for investing activities
(28,580)
(8,718)
Cash Flows From Financing Activities:
Proceeds from issuances of common stock via at-the-market program, net of issuance costs
19,909
-
Net proceeds from employee stock programs
41
1,153
Payments of dividends to stockholders
(1,565)
(1,413)
Repayments of commercial paper, net
-
(238)
(Repayments of) proceeds from short-term financing related to capital expenditures, net
(830)
1,958
Repayments of senior notes, term loan credit agreements and other borrowings
(4,202)
(1,052)
Other financing activities, net
(242)
(198)
Net cash provided by financing activities
13,111
210
Effect of exchange rate changes on cash, cash equivalents and restricted cash
11
27
Net increase (decrease) in cash, cash equivalents and restricted cash
7,645
(341)
Cash, cash equivalents and restricted cash at beginning of period
31,289
10,786
Cash, cash equivalents and restricted cash at end of period
$ 38,934
$ 10,445
ORACLE CORPORATION
Q1 FISCAL 2027 FINANCIAL RESULTS
FREE CASH FLOW (1)
($ in millions)
Fiscal 2026
Fiscal 2027
Q1
Q2
Q3
Q4
TOTAL
Q1
Q2
Q3
Q4
TOTAL
GAAP Operating Cash Flow
$ 8,140
$ 2,066
$ 7,151
$ 14,620
$ 31,977
$ 23,103
$ 23,103
Capital Expenditures
(8,502)
(12,033)
(18,635)
(16,493)
(55,663)
(28,499)
(28,499)
Free Cash Flow
$ (362)
$ (9,967)
$ (11,484)
$ (1,873)
$ (23,686)
$ (5,396)
$ (5,396)
Operating Cash Flow % Growth over prior year
10 %
58 %
21 %
137 %
54 %
184 %
184 %
GAAP Net Income
$ 2,927
$ 6,135
$ 3,721
$ 4,304
$ 17,087
$ 4,760
$ 4,760
Operating Cash Flow as a % of Net Income
278 %
34 %
192 %
340 %
187 %
485 %
485 %
(1) To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows to analyze cash flow generated from operations. We believe free cash flow is also useful as one of the bases for comparing our
performance with our competitors. The presentation of non-GAAP free cash flow is not meant to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from
operating activities as a measure of liquidity.
ORACLE CORPORATION
Q1 FISCAL 2027 FINANCIAL RESULTS
NET CASH OUTLAY FOR CAPITAL EXPENDITURES (1)
($ in millions)
Fiscal 2026
Fiscal 2027
Q1
Q2
Q3
Q4
TOTAL
Q1
Q2
Q3
Q4
TOTAL
Capital Expenditures
$ 8,502
$ 12,033
$ 18,635
$ 16,493
$ 55,663
$ 28,499
$ 28,499
Less: Other Short-Term Financing Cash Flow Related to Capital Expenditures (2)
(1,958)
760
(1,469)
(3,345)
830
830
(678)
Less: Customer Prepayments with Significant Financing
Component for Capital Expenditures (3)
-
-
-
(4,592)
(11,363)
(11,363)
(4,592)
Net Cash Outlay for Capital Expenditures
$ 6,544
$ 12,793
$ 17,166
$ 11,223
$ 47,726
$ 17,966
$ 17,966
(1) To supplement our cash flow for capital expenditures presented in our statements of cash flows in accordance with GAAP, we provide net cash outlay for capital expenditures. Net cash outlay for capital expenditures is defined as capital
expenditures, less (1) other short-term financing cash flow related to capital expenditures and (2) customer prepayments with significant financing component for capital expenditures. We believe this supplemental presentation of net
cash outlay for capital expenditures is useful because it provides additional information about the cash requirement for funding of our capital expenditures and is used by management when forecasting expected capital expenditures.
(2) Represents other short-term financing cash flows related to capital expenditures as reported in cash flows from financing activities in our statements of cash flows. We use third-party manufacturing partners to produce most of our cloud
infrastructure assets and in some cases supply them with components purchased directly from suppliers. Certain of these arrangements result in a portion of the cash received from and paid to third-party manufacturers presented within
financing activities in our statements of cash flows.
(3) Represents customer prepayments with significant financing component as reported in cash flows from operating activities in our cash flow statements presented in accordance with GAAP.
ORACLE CORPORATION
Q1 FISCAL 2027 FINANCIAL RESULTS
SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1)
($ in millions)
Fiscal 2026
Fiscal 2027
Q1
Q2
Q3
Q4
TOTAL
Q1
Q2
Q3
Q4
TOTAL
REVENUES BY OFFERINGS
Cloud
$ 7,186
$ 7,977
$ 8,914
$ 9,913
$ 33,989
$ 11,607
$ 11,607
Software license
766
939
1,150
1,881
4,737
655
655
Software support
4,955
4,938
4,969
4,943
19,804
4,895
4,895
Software
5,721
5,877
6,119
6,824
24,541
5,550
5,550
Hardware
670
776
714
924
3,084
774
774
Services
1,349
1,428
1,443
1,523
5,743
1,414
1,414
Total revenues
$ 14,926
$ 16,058
$ 17,190
$ 19,184
$ 67,357
$ 19,345
$ 19,345
AS REPORTED REVENUE GROWTH RATES
Cloud
28 %
34 %
44 %
47 %
39 %
62 %
62 %
Software license
(12 %)
(21 %)
2 %
(6 %)
(9 %)
(15 %)
(15 %)
Software support
1 %
1 %
4 %
0 %
1 %
(1 %)
(1 %)
Software
(1 %)
(3 %)
3 %
(2 %)
(1 %)
(3 %)
(3 %)
Hardware
2 %
7 %
2 %
9 %
5 %
15 %
15 %
Services
7 %
7 %
12 %
13 %
10 %
5 %
5 %
Total revenues
12 %
14 %
22 %
21 %
17 %
30 %
30 %
CONSTANT CURRENCY REVENUE GROWTH RATES (2)
Cloud
27 %
33 %
41 %
46 %
37 %
61 %
61 %
Software license
(13 %)
(23 %)
(2 %)
(6 %)
(10 %)
(14 %)
(14 %)
Software support
(1 %)
0 %
0 %
(1 %)
(1 %)
(1 %)
(1 %)
Software
(2 %)
(5 %)
(1 %)
(3 %)
(3 %)
(3 %)
(3 %)
Hardware
1 %
5 %
(2 %)
7 %
3 %
16 %
16 %
Services
5 %
6 %
8 %
12 %
8 %
5 %
5 %
Total revenues
11 %
13 %
18 %
20 %
16 %
30 %
30 %
CLOUD REVENUES BY OFFERINGS
Cloud applications
$ 3,839
$ 3,898
$ 4,026
$ 4,126
$ 15,888
$ 4,219
$ 4,219
Cloud infrastructure
3,347
4,079
4,888
5,787
18,101
7,388
7,388
Total cloud revenues
$ 7,186
$ 7,977
$ 8,914
$ 9,913
$ 33,989
$ 11,607
$ 11,607
AS REPORTED REVENUE GROWTH RATES
Cloud applications
11 %
11 %
13 %
10 %
11 %
10 %
10 %
Cloud infrastructure
55 %
68 %
84 %
93 %
77 %
121 %
121 %
Total cloud revenues
28 %
34 %
44 %
47 %
39 %
62 %
62 %
CONSTANT CURRENCY REVENUE GROWTH RATES (2)
Cloud applications
10 %
11 %
11 %
9 %
10 %
10 %
10 %
Cloud infrastructure
54 %
66 %
81 %
92 %
75 %
120 %
120 %
Total cloud revenues
27 %
33 %
41 %
46 %
37 %
61 %
61 %
GEOGRAPHIC REVENUES
Americas
$ 9,662
$ 10,467
$ 11,361
$ 12,988
$ 44,478
$ 13,711
$ 13,711
Europe/Middle East/Africa
3,481
3,760
3,964
4,093
15,297
3,726
3,726
Asia Pacific
1,783
1,831
1,865
2,103
7,582
1,908
1,908
Total revenues
$ 14,926
$ 16,058
$ 17,190
$ 19,184
$ 67,357
$ 19,345
$ 19,345
(1) The sum of the quarterly information presented may vary from the year-to-date information presented due to rounding.
(2) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework
for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for
entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2026 and 2025 for the fiscal 2027 and fiscal
2026 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods.
To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain significant expenses including stock-based compensation, expenses related to acquisitions, restructuring and certain other operating expenses, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects related to each of the below items except for the impact of the U.S. One, Big, Beautiful Bill Act:
• Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses, income tax effects and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.
• Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating expenses, income tax effects and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.
• Restructuring and other expenses: We have excluded the effect of restructuring and other expenses from our non-GAAP operating expenses, income tax effects and net income measures. We incurred expenses in connection with our restructuring activities and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Restructuring and other expenses consist of employee severance costs and other exit costs related to our restructuring activities, certain asset impairment charges and certain other operating items, net. We believe it is useful for investors to understand the effects of these items on our total operating expenses.
• Impact of the U.S. One, Big, Beautiful Bill Act (OBBBA): OBBBA was signed into law on July 4, 2025. We recorded a net tax expense of $958 million during the first quarter of fiscal 2026, primarily related to the remeasurement of a deferred tax liability previously recorded during fiscal 2021, as part of the partial realignment of our legal entity structure. We have excluded the impact of this charge from our non-GAAP income taxes and net income measures in the first quarter of fiscal 2026. We believe making these adjustments provides insight to our operating performance and comparability to past operating results.
Oracle klesl asi o 2,2 % před výsledky, zatímco výnos jeho většího dluhopisu činí 7,86 % oproti 7,67 % u menší starší emise. Trh tak zpochybňuje nákladnost výstavby AI.
A newer, larger Oracle bond yields more than its smaller twin--the opposite of the normal liquidity advantage. Summary
Oracle’s AI buildout is becoming expensive before investors even reach tonight’s earnings.
Oracle ORCL, the enterprise-software and cloud-infrastructure giant, slid approximately 2.2% to $158.19 Thursday before its scheduled after-hours results. The stock's retreat put a spotlight on a much bigger question: how much debt can the AI boom absorb? U.S. hyperscalers have issued roughly $220 billion of debt over the past year.
Reuters Open Interest highlighted an unusual gap between two Oracle bonds due in 2055. A newer $3.5 billion issue yielded 7.86% on August 21, compared with 7.67% for an older $1 billion bond carrying similar seniority and redemption terms. The larger issue also traded with an option-adjusted spread that was 22 basis points wider. That runs against the normal playbook, where bigger bonds typically enjoy stronger liquidity and cheaper financing.
Oracle's annual filing explains why credit investors are demanding a closer look. Fiscal 2026 capital expenditures reached approximately $55.7 billion, exceeding operating cash flow by roughly $23.7 billion, while management later projected up to $95 billion of spending for fiscal 2027. The chart shows Oracle trading 18.92% below its $195.10 GF Value estimate, suggesting meaningful upside if its $638 billion backlog converts into cash quickly enough. The opportunity is enormous, but the bond market is warning that building the required AI capacity will not come cheaply.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Oracle plánuje ve fiskálním roce 2027 utratit za kapitálové výdaje asi 70 miliard USD, tedy více než dvojnásobek hotovosti, kterou podnik vytvořil v loňském roce. Firma chce rozdíl financovat dluhem a novými akciemi.
Oracle (ORCL -0.55%) reports its fiscal first-quarter results on Thursday, Sept. 10, after the market closes. The tech company's shares have rallied into the report, climbing more than 10% over the past week to around $162 as of this writing. Even after that run, the stock would have to more than double to get back to its record high of $345.72.
Most of the attention Thursday will likely go to revenue and the company's artificial intelligence (AI) contracts. But the line I'll be reading first is capital expenditures -- and, right below it, how Oracle is paying for them.
The plan for fiscal 2027 calls for Oracle to spend about $70 billion in cash on capital expenditures. The business produced about $32 billion of cash in all of fiscal 2026.
Image source: Getty Images.
How big is the gap?On Oracle's June earnings call, chief financial officer Hilary Maxson laid out the spending plan. Oracle expects a net cash outlay of around $70 billion for capital expenditures in fiscal 2027, which runs through next May. Customer prepayments and timing effects should add another $20 billion to $25 billion on top, so the capital expenditures Oracle reports could reach $90 billion to $95 billion. The $70 billion, though, is the cash Oracle itself expects to pay out, and it's the figure I'll use here.
Now set that against what the business brings in. Operating cash flow climbed 54% in fiscal 2026, which ended this past May, to a record $32 billion. Growth like that is impressive.
But Oracle spent $55.7 billion on capital expenditures in fiscal 2026, up 162% from the $21.2 billion it spent in fiscal 2025. The result was free cash flow of negative $23.7 billion. And the fiscal 2027 plan steps the spending up again.
To be fair, the headline comparison mixes two periods: the $70 billion is a forward guide for fiscal 2027, while the $32 billion is what fiscal 2026 delivered. That mismatch, though, is the point.
Even if operating cash flow grew another 54% this year, it would land near $49 billion -- still well short of the capital budget. On this net basis, Oracle plans to spend more than twice the cash its business produced last year.
Borrowed money and new sharesWhere does the rest come from? Oracle expects to raise around $40 billion of debt and equity in fiscal 2027, Maxson said on the call.
That includes an at-the-market program the company announced in February, which allows Oracle to sell up to $20 billion of new stock over time at market prices.
The $40 billion would be new money, on top of what Oracle has already borrowed. The company issued $43 billion of senior notes in fiscal 2026, and as of May 31, it hadn't sold any shares under the new stock program.
And neither tool is free. Borrowing adds interest costs, and selling stock spreads future profits across more shares.
Of course, management has its reasons. Oracle's cloud infrastructure revenue grew 77% in fiscal 2026, to $18.1 billion, and the company is building the data centers its AI contracts will require.
Is the plan on track?Thursday's report covers the fiscal first quarter -- the opening three months of the $70 billion year. The capital expenditure line in the cash flow statement offers the first check. The full-year plan implies reported spending of $90 billion to $95 billion (an average above $22 billion each quarter), so Thursday's number will show whether the spending is arriving on pace.
Premium Feature
Moneyball Superscore
75/100
Today's Change
(
-0.55
%) $
-0.89
Current Price
$
161.63
The financing section covers the other half. It shows how much the company borrowed during the quarter, and it shows any stock sold under the new program.
And operating cash flow deserves a look of its own. It's the one line that can shrink the gap rather than fill it.
Ultimately, my worry here isn't demand. My worry is the funding. A company planning to spend twice the cash its business produces is making an enormous bet, and the bet arguably only works if the AI build-out pays off on schedule.
Borrowed money and new shares can carry the plan for a while, but eventually the business itself has to produce the cash. Until operating cash flow starts to close the gap, I'd stay on the sidelines.
Oracle (ORCL - Free Report) ) and Adobe (ADBE - Free Report) ) are arguably the two biggest highlights of this week’s earnings lineup, with both software giants set to report their quarterly results after the market closes on Thursday, September 10.
More importantly, both companies have become prominent ways for investors to gain exposure to the artificial intelligence boom, although from very different angles.
Oracle is benefiting from explosive demand for AI-related cloud infrastructure, while Adobe is embedding generative and agentic AI throughout its industry-leading creative, document, and marketing platforms.
With earnings approaching, the question is whether Oracle’s stronger growth trajectory justifies its premium valuation, or whether Adobe’s steeply discounted stock offers the better opportunity.
Oracle's Explosive Cloud GrowthExpectations are lofty for Oracle’s fiscal Q1, with consensus estimates calling for roughly $19.13 billion in revenue and EPS of $1.74. That sits near management’s guidance for revenue growth of 27%-29% and adjusted EPS of $1.72-$1.76, which would equate to more than 17% year-over-year growth.
Investors will be particularly focused on Oracle Cloud Infrastructure (OCI), as management expects total cloud revenue to surge 58%-64% in U.S. dollars.
This comes as Oracle exited its fiscal 2026 with quarterly cloud revenue rising 47% to $9.9 billion in Q4, including a stunning 93% increase in infrastructure revenue. Annual sales were up 17% to $67.36 billion and are projected to spike another 33% in Oracle's current FY27 based on Zacks estimates.
Furthermore, Oracle's remaining performance obligations (RPO) soared 363% to $638 billion, with much of the increase stemming from large-scale AI contracts. That gives ORCL tremendous revenue visibility, although its aggressive AI data-center spending remains a key risk.
Image Source: Zacks Investment Research
Can Adobe Prove AI Is a Tailwind?Adobe is expected to post fiscal Q3 EPS of approximately $6.08 on revenue of $6.69 billion, essentially in line with management's guidance for sales of $6.67-$6.72 billion and adjusted EPS of $6.05-$6.10.
Those top-and bottom-line expectations would represent nearly 12% and 14% growth, respectively.
The bigger issue will be Adobe's AI monetization. Despite fears that generative AI could disrupt its traditional creative software franchise, Adobe most recently delivered record Q2 revenue of $6.61 billion, while AI-first annual recurring revenue (ARR) tripled YoY to more than $500 million.
Continued traction across Firefly, Adobe's generative-AI creative platform, could therefore help ease concerns that AI represents more of a competitive threat than an opportunity.
Image Source: Zacks Investment Research
ADBE Has the Clear Valuation AdvantageAdobe wins decisively on traditional valuation metrics. ADBE trades at around 13X forward earnings, offering a sharp discount to the benchmark S&P 500’s 21X, compared with roughly 25X for Oracle.
Adobe's nearly 50% discount to Oracle makes the stock intriguing if management can prove AI is accelerating rather than cannibalizing its growth.
However, Oracle's premium appears more justified by its much faster cloud expansion and enormous AI-driven backlog.
Image Source: Zacks Investment Research
Bottom LineWhile Adobe's depressed valuation provides considerable rebound potential, Oracle appears to be the more compelling stock heading into Thursday's results.
Supporting that view, ORCL currently sports a Zacks Rank #2 (Buy), while ADBE lands a Zacks Rank #4 (Sell). Thus, investors may want to wait for further confirmation that Adobe is moving past AI disruption fears, whereas Oracle's surging AI infrastructure demand makes its higher valuation easier to justify.
Oracle čeká po čtvrtečních výsledcích možný pohyb akcií až o 11 % do konce týdne. Trh zároveň čeká meziroční růst tržeb o 28 % na 19,06 miliardy USD a upravený EPS 1,74 USD.
Key Takeaways
Oracle is set to report earnings Thursday afternoon, with options pricing suggesting traders see the stock moving up to 11% by the end of the week.The company is expected to report rising revenue and profits, though analysts warned it could take more than strong results for Oracle to impress investors.
Oracle is scheduled to report earnings after the closing bell Thursday, with traders anticipating a big move from the database and cloud infrastructure giant’s stock.1
Based on recent options pricing, Oracle (ORCL) shares are seen swinging up to 11% in either direction by the end of the week. A move of that size from Wednesday’s close could lift the stock as high as $179, recovering some of its losses this year, or drag it below $145.
Oracle shares have lost nearly 20% of their value in 2026, and more than 50% from their record high last September, amid worries over the company’s fundraising and spending plans, as well as the concentration of its backlog with a few large AI companies.
Why This Is Significant
Oracle could be challenged to impress investors with Thursday’s results amid worries about an AI bubble.
Analysts at Morgan Stanley, who have a neutral rating on the stock, warned in a recent note that it could take several quarters of solid results for Oracle to win over wary investors.2 Citi analysts told clients they “see opportunity after one of the most extreme dislocations and drawdowns in the stock’s history.”3
Oracle is projected to report a 28% year-over-year jump in fiscal first-quarter revenue to $19.06 billion. Adjusted earnings per share are seen coming in at $1.74, up from $1.47 a year ago. Oracle’s backlog is expected to have grown to nearly $640 billion, up 40% year-over-year, according to estimates compiled by Visible Alpha.
Most Wall Street analysts remain bullish on Oracle. Nine of the 11 analysts tracked by Visible Alpha have said they consider the stock a “buy,” compared to one neutral and one “sell” rating. Their average price target of $239 would suggest nearly 50% upside from Wednesday’s close.
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Oracle zveřejní čtvrtletní výsledky po uzavření trhu; tržby se čekají na 19,14 miliardy USD a EPS na 1,74 USD. Akcie jsou 53,4 % pod rekordem z poloviny září 2025.
Oracle Corporation (NYSE:ORCL) stock is down over 50% from all-time highs set in September 2025. One year later, the company could look to get things on the right track with first-quarter financial results coming Thursday after market close.
Here are the earnings estimates, what analysts are saying ahead of the report and key items to watch.
Oracle Q1 Earnings EstimatesAnalysts expect Oracle to report first-quarter revenue of $19.14 billion, up from $14.93 billion in last year’s first quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in two straight quarters and in four of the last 10 quarters overall.
The estimate of $19.14 billion comes close to the company’s record quarterly revenue total of $19.18, which was set in the fourth quarter.
Analysts expect Oracle to report first-quarter earnings per share of $1.74, up from $1.47 in last year’s first quarter.
The company has beaten analyst estimates for earnings per share in three straight quarters and in seven of the last 10 quarters overall.
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What Experts Are SayingCitizens analyst Patrick Walravens sees Oracle’s revenue growing by 29% year-over-year in the first quarter.
The analyst maintained an Outperform rating and price target of $285 ahead of earnings.
Walravens names four key items to look at during the earnings and management commentary, which are the health of the company’s relationship with OpenAI, if Oracle is on track for long-term revenue guidance, long-term financing plans and if the company can deliver its data center capacity plans.
The analyst highlights Oracle’s previous guidance of revenue of $130 billion in fiscal 2028 and $185 billion in fiscal 2029.
"While funding is one of the main concerns heading into the print, we view the stock as an attractive opportunity for long-term capital appreciation," Walravens said.
An equity raise has been an overhang on Oracle stock since fourth-quarter financial results, Guggenheim analyst John DiFucci said in a recent investor note.
The analyst maintains a Buy rating with a price target of $400 ahead of earnings.
"With the company having issued no equity in F4Q26, we believe investors want to see material progress this quarter," DiFucci said.
The analyst said channel checks show improving trends for Oracle’s SaaS and database segments.
"Buy-rated ORCL is our Best Idea and what we view as a ‘Decade Stock.’"
Here are other recent analyst ratings on Oracle stock and their price targets:
Morgan Stanley: Maintained Equal-Weight rating, raised price target from $207 to $210 RBC Capital: Maintained Sector Perform rating, with price target of $190 Jefferies: Maintained Buy rating, lowered price target from $320 to $290 TD Cowen: Maintained Buy rating, lowered price target from $300 to $240 Key Items to WatchOracle has a recent history of beating analyst estimates for revenue and earnings per share, but the stock has been hurt by concerns about financing and partnerships.
The stock is down 17.6% year-to-date in 2026. Shares are also down 53.4% from all-time highs set nearly one year ago in mid-September 2025.
Cloud revenue was up 47% year-over-year in the fourth quarter, which was a key to the double beat and record results. Cloud will be a key to watch.
Another key item to watch is remaining performance obligations, which stood at $638 billion at the end of the fourth quarter, up 363% year-over-year. Investors and analysts will be looking for this future revenue figure to come in high once again.
The company shared fiscal 2027 guidance previously and investors and analysts will be closely watching to see if these figures are increased after first quarter results.
Oracle Stock Price ActionOracle stock is down 0.8% to $161.24 on Wednesday versus a 52-week trading range of $114.50 to $345.72.
Opční obchodníci sázejí před čtvrtečními výsledky Oracle na strike 175 USD, tedy zhruba 8 % nad úterním závěrem. Zájem podporuje 93% růst cloudových tržeb na 5,8 miliardy USD.
The $175 strike is drawing attention before Thursday's earnings report. Summary
Bullish activity has put the $175 strike in focus
Enterprise software and cloud infrastructure company Oracle Corp. (ORCL, Financials) is set to report earnings with options traders looking for a big move.
The corporation reports fiscal first-quarter data Thursday after the close of the market. Shares closed Tuesday at $162.52, up 2.4%. Options activity indicates traders don't expect a quiet reaction.
Call purchasing has driven the bullish bias with special focus on the $175 strike. That would be nearly an 8% premium to Tuesday's closing price for Oracle. The enthusiasm comes as Oracle's cloud infrastructure business becomes more related to the AI expenditure boom.
Cloud infrastructure revenue rose 93% to $5.8 billion last quarter. Oracle also closed fiscal 2026 with $638 billion in remaining performance obligations, which is a substantial backlog of business already under contract. But there's a cost to such growth.
Oracle generated $32 billion in operating cash flow in fiscal 2026, but its free cash flow plunged to a negative $23.7 billion as the business spent heavily on AI data centers. That means Thursday's report is about more than whether Oracle beats quarterly projections.
The big concern for investors is whether the AI cloud income explosion can justify the huge capital spending behind it. Options traders are already betting the response may send the stock soaring or plunging.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Oracle a Amazon hlásí rekordní cloudové backlogy 638 miliard a 496 miliard dolarů, ale jejich volný peněžní tok se obrátil do záporu kvůli masivním investicím do AI datacenter. Trh čeká, zda Fed tento měsíc financování zlevní, nebo naopak ještě prodraží.
Oracle and Amazon just posted record cloud backlogs while their free cash flow turned negative, and a single Fed decision this month could determine whether their trillion-dollar AI buildouts become strokes of genius or catastrophic overextensions.
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Oracle (NYSE: ORCL | ORCL Price Prediction) and Amazon (NASDAQ: AMZN) both just reported standout cloud quarters, and both are pouring unprecedented sums into AI datacenters. Oracle wrapped Q4 FY2026 on June 10, and Amazon delivered Q2 FY2026 on July 30. With the Fed Funds upper bound sitting at 3.75% and the 10-year Treasury yield at 4.78%, financing this buildout is getting expensive. The upcoming Fed meeting this month heightens those fears.
Cloud Backlogs Surge While Cash Flow Flips Negative Oracle’s Q4 revenue hit $19.18 billion with EPS of $2.11, and OCI grew 93% year over year. Remaining performance obligations ballooned to $638 billion, which management called “unprecedented.” The catch: free cash flow ran negative $23.69 billion for FY2026, and Oracle plans to raise roughly $40 billion in debt and equity in FY2027 to fund a $70 billion capex outlay.
Amazon’s AWS grew 37% to $42.23 billion, its fastest pace in 18 quarters, with an AWS backlog of $496 billion. But Q2 capex alone reached $54.2 billion, up nearly 68% year over year, and trailing free cash flow flipped to negative $7.6 billion. CEO Andy Jassy admitted the company will “encounter free cash flow headwinds until these data centers come online.”
Why Rates Bite These Two Harder Amazon has retail, ads, and subscription cash to lean on. Oracle relies almost entirely on legacy software cash flow. CFO Brian Olsavsky acknowledged Amazon has “issued debt this year” and is weighing options. Oracle’s balance sheet already carries $218.7 billion in total liabilities, and every basis point on new issuance matters when you are printing $40 billion of paper into a 4.78% 10-year environment.
Rate Exposure Lens Oracle Amazon FY Capex Plan ~$70B (FY27) ~$200B (2026) Free Cash Flow -$23.69B -$7.6B TTM Non-Cloud Cash Cushion Legacy software Retail, ads, Prime New Funding Need $40B debt/equity Debt optional What I Am Watching Into the Fed Meeting Oracle stock has been punished, down 31.07% over the past year, though it rallied 15% in the past week as the OpenAI ecosystem came back into favor. Amazon has quietly climbed 8.96% over 12 months. A dovish Fed pivot would ease Oracle’s funding math dramatically. A hawkish surprise could force Larry Ellison’s team to lean harder on that $20 billion at-the-market equity issuance, diluting shareholders.
Why I Lean Amazon Right Now For AI cloud exposure with a built-in shock absorber, Amazon carries more diversified cash flow. AWS margins ran at 39.4%, and retail cash flow can carry the capex weight even if the Fed stays higher for longer. Oracle offers more upside if rates fall and the RPO converts to revenue on schedule, but I need to see cash capex peak before I get comfortable. Oracle offers higher torque to a Fed pivot and OCI execution, while Amazon’s diversification offers more insulation if rates stay elevated.
Contact [email protected] for any questions or corrections.
Oracle před zveřejněním výsledků zůstává pod tlakem: akcie letos klesly o 17,74 % a Wall Street má stále průměrnou cílovou cenu 242,05 USD oproti ceně 158,78 USD. Trh sleduje hlavně obrovský backlog 638 miliard USD a vysoké kapitálové výdaje.
Oracle's stock has cratered while Wall Street analysts stubbornly hold some of the most bullish price targets in the mega-cap space. With earnings dropping Thursday, something has to give.
Oracle (NYSE:ORCL | ORCL Price Prediction) currently trades at $158.78, while Wall Street’s consensus price target sits at $242.05. The gap between those two numbers is unusually wide for a mega-cap, and it is the entire reason to look closely at this name right now.
Oracle has become one of the largest AI infrastructure builders in the world, with a cloud business scaling rapidly on the back of multi-year contracts from major AI customers. Cloud Infrastructure revenue grew 93% in the fiscal fourth quarter, and Remaining Performance Obligations, the contracted backlog investors watch most closely, jumped 363% year over year to $638 billion.
The dislocation between price and target has widened through the summer. Whether Wall Street is stubbornly clinging to stale targets, or whether the market has overshot to the downside, is the question worth answering before Oracle reports later this week.
Cloud Buildout Costs Turned Investors Cautious The most immediate driver of the derating has been the sheer scale of Oracle’s capital spending program. Free cash flow for fiscal 2026 came in at negative $23.69 billion, on capital expenditures of $55.663 billion. Total liabilities reached $218.703 billion, and management guided to roughly $40 billion in fresh debt and equity funding across fiscal 2027, including a $20 billion at-the-market equity issuance already underway. Net cash capex for fiscal 2027 is expected around $70 billion.
The Q2 fiscal 2026 report in December set the tone, sending shares down roughly 13% on a revenue miss even though non-GAAP EPS beat by 32.43%. From there, investors kept selling. The 52-week trading range runs from a high of $341.82 to a low of $114.5, showing how violently sentiment has swung.
This has looked like a sector-wide reassessment of how the AI buildout will actually be paid for, rather than a company-specific fumble. Oracle sits at the epicenter of that debate because its capex commitments are the most aggressive relative to its size in the group. All of that spend has to be powered, cooled, and networked by somebody, and we pulled together seven of those suppliers in a free AI infrastructure report.
Why the Sell Side Is Sticking With $242 Analysts have not blinked. The consensus target still sits at $242.05, and the ratings distribution skews decisively bullish: 8 Strong Buy, 28 Buy, 7 Hold, 1 Sell, 0 Strong Sell.
The bull case rests on the $638 billion RPO backlog. Management expects 12% of RPO to be recognized in the next 12 months and another 34% between 13 and 36 months. Fiscal 2027 revenue is guided to $90 billion with non-GAAP EPS of $8.05. Long-term targets call for a 31% revenue CAGR and 28% EPS CAGR through fiscal 2030. Multicloud AI Database revenue grew 404% in Q4 alone, and global GPU utilization sat at 97.5%.
Estimate revisions have leaned upward. Over the trailing 30 days, fiscal 2027 EPS estimates saw 21 upward revisions versus 12 downward, and fiscal 2028 saw 20 upward against 6 downward. That is a sell side digging in.
Oracle Fell Harder Than the Hyperscaler Group The natural comparison set is Microsoft, Amazon, Alphabet, IBM, and Salesforce, all of which carry exposure to the same AI capex debate. None has derated to the extent Oracle has over the past year. Snowflake, the closer pure-play cloud data peer, has traded on its own growth-rate concerns rather than mirroring Oracle’s move. Oracle is the name the market has punished hardest for the funding math, even though its RPO growth rate is the fastest in the peer group.
Backlog Is Massive, Cash Burn Is Massive Too Oracle currently trades at $158.78 as of the most recent Friday close, with the sell side setting an average target of $242.05. The ratings tally comes from 44 covering analysts. Shares are down 27.98% over the past year and 17.74% year to date, leaving Oracle a meaningful laggard against an S&P 500 that has posted modest gains over the same stretch. Precise index performance aside, the underperformance is not close.
Oracle reports fiscal Q1 2027 results on September 10 after the close. Guidance calls for revenue growth of 27% to 29% and non-GAAP EPS between $1.72 and $1.76. Analyst targets are one data point rather than gospel, and a soft report could pull them lower in a hurry.
Buy the Backlog, but Only if Cash Flow Confirms The bull-case checkpoints for this week’s report are RPO converting on schedule, GPU utilization holding near 97.5%, and gross margin compression contained to what management already flagged. The path back to $242 runs through cash flow visibility and backlog conversion.
The bear case builds if the quarter reveals slippage in datacenter delivery, or if the $40 billion financing plan comes in more dilutive than expected. A negative $23.69 billion free cash flow number is a lot to underwrite on faith.
On balance, I lean constructive. The backlog is real, the demand is real, and the sell side has had months to cut targets and has chosen to raise numbers instead. Into Thursday’s report, the setup favors the patient buyer more than the seller chasing a broken chart.
Contact [email protected] for any questions or corrections.
Oracle ve 4. čtvrtletí fiskálního roku 2026 zvýšila tržby z cloudové infrastruktury o 93 % na 5,79 miliardy USD a objem nevyřízených zakázek (backlog) vzrostl o 363 % na 638 miliard USD. Tím tlačí na AWS cenou i kontrakty v oblasti AI.
Oracle is undercutting AWS on price and piling up a backlog that defies expectations, but one of these cloud giants is bleeding cash to get there. The question is whether a discount challenger can actually dethrone the incumbent before its…
Oracle (NYSE:ORCL | ORCL Price Prediction) and Amazon (NASDAQ:AMZN) both closed fresh quarters that reframe the cloud pecking order. Oracle is signing hyperscale AI contracts at a pace that squeezes AWS from below on price. Comparing the two is a debate about who sets AI infrastructure pricing for the next decade.
OCI Sprints. AWS Compounds. Oracle’s Q4 FY2026 showed cloud infrastructure revenue climbing 93% year over year to $5.79 billion, with total remaining performance obligations exploding to $638 billion, up 363%. Of that backlog, $75 billion is tied to bring-your-own-hardware or prepaid GPU deals. Global GPU utilization sits at 97.5%, suggesting demand is real.
Amazon’s Q2 answered with muscle. AWS revenue reached $42.23 billion, up 37%, the fastest growth in 18 quarters, at a 39.4% operating margin. CEO Andy Jassy said AI and Chips each cleared $25 billion annualized run rates, and AWS backlog reached $496 billion.
Discount Hyperscaler Meets the Incumbent Lens Oracle Amazon (AWS) Core Bet Chip-neutral, customer-funded GPUs Custom silicon (Trainium, Graviton) Pricing Angle Lowest-cost infrastructure, outcome-based Graviton 30% to 40% better price performance Capital Load FY26 free cash flow -$23.69B TTM free cash flow -$7.6B Key Vulnerability Debt raise near $40B in FY27 Enterprise price pressure from OCI Oracle’s pitch is that customers can prepay, bring their own GPUs, and access Oracle’s operations layer. Multicloud database revenue jumped 404% in Q4, embedded inside AWS, Google, and Microsoft regions. Amazon’s counter is vertical: Graviton is used by 98% of AWS’s top 1,000 EC2 customers, and Anthropic plus OpenAI have made multi-gigawatt Trainium commitments.
Margin Math Is the Next Referee Watch whether Oracle’s promised high-20s ROIC at the project level shows up as gross margin recovers. Q1 FY27 guidance calls for cloud revenue growth of 58% to 64%. Track whether AWS holds that 39% margin as Oracle’s pricing bleeds into enterprise renewal talks. Amazon’s Q3 operating income guide of $22.5B to $26.5B is the first test.
Why I Lean Toward AWS for Now, With One Eye on Oracle I trust the AWS cash engine more today. Oracle stock is down 27.98% over one year, and the FY27 financing plan of roughly $40 billion in debt and equity gives me pause. Amazon, up 9.69% over one year, funds its buildout from operating cash flow across retail, ads, and AWS. Oracle offers higher-variance turnaround torque if the RPO converts cleanly, while AWS offers scale, silicon, and margin durability.
Contact [email protected] for any questions or corrections.
Morgan Stanley zvýšila cílovou cenu Oracle, což poslalo akcie v úterý ráno o 5 % výše na 167,15 USD. CoreWeave přidal 3 % na 92,20 USD díky stejnému AI cloudovému impulsu.
A Morgan Stanley price target raise just reignited the AI cloud infrastructure trade, sending Oracle surging on a day when the broader market slipped into the red. Whether the rally reflects genuine conviction or a short-term narrative reset is the…
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AI cloud infrastructure names are moving higher Tuesday morning after a sell-side re-rating on Oracle (NYSE:ORCL | ORCL Price Prediction) reignited enthusiasm across GPU cloud peers. Morgan Stanley’s price target raise is the day’s catalyst, and it’s pulling CoreWeave (NASDAQ:CRWV) along with it as investors extend their AI infrastructure exposure across both hyperscale and pure-play GPU cloud names.
The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.12%, so cloud infrastructure names are rising against a softer tape. No dedicated cloud sector fund carried a same-day figure, so the broad-market benchmark alone anchors the framing contrast today.
Oracle stock is up 5% to $167.15 in early trading. Meanwhile, CoreWeave stock is up 3% to $92.20 on the same AI infrastructure tailwind.
Morgan Stanley Price Target Raise Lifts Oracle Morgan Stanley raised its Oracle price target, and that’s the trigger behind Tuesday’s move. The raise validates the market’s AI infrastructure spending case and lifts sentiment around Oracle’s cloud pipeline heading into a fresh reporting window.
Oracle’s most recent earnings offer a constructive backdrop. Its Q4 FY2026 report on June 10 showed Cloud Infrastructure revenue up 93% year over year (YoY) to $5.79 billion, and its Remaining Performance Obligations surged 363% to $638 billion.
That RPO figure includes $75 billion tied to prepaid or customer-supplied GPU AI contracts. Oracle’s management confirmed a $90 billion FY2027 revenue target and raised non-GAAP EPS guidance to $8.05.
On the financing side, the bear case still sits with the capital plan. Oracle plans to raise approximately $40 billion through debt and equity in FY2027, and its free cash flow was negative $23.7 billion for FY2026 on $55.7 billion of capex. A Morgan Stanley re-rating tells investors the sell-side is now willing to underwrite that capital plan against expected AI cloud revenue growth.
Two Different Year-to-Date Stories Oracle stock was down 14% year to date (YTD) through Monday’s close, so today’s gain reads as a recovery move off a weak year. At the same time, CoreWeave stock was up 28% YTD, so its participation extends an already-strong run.
That gap matters for how investors size their exposure. For CoreWeave, whose Q2 2026 revenue reached $2.6 billion, up 112% YoY, and whose backlog sits near $104 billion, today’s move layers onto elevated AI infrastructure enthusiasm (we profiled seven suppliers powering that data-center buildout beyond the chipmakers in a free report here). Oracle, by contrast, gets a narrative refresh from the sell-side re-rating after a rough stretch that saw shares fall well off their 52-week high of $341.82.
CoreWeave’s own capex profile mirrors Oracle’s in intensity if not scale. Its full-year 2026 capex guidance stands at $35 billion to $39 billion, and management raised its year-end active-power expectation to more than 1.85 gigawatts. CEO Michael Intrator stated, “Demand continues to intensify as the market broadens across sectors, geographies, workloads and generations of GPU architecture.”
Cloud Scorecard Ticker Session Move YTD ORCL up 5% down 14% CRWV up 3% up 28% Snowflake (NYSE:SNOW) is the third leg of the enterprise AI infrastructure trade, but it’s playing a sideline role today. The stock gave back ground late last week after its own guidance-driven run, which puts the cloud group’s second leg squarely in Oracle’s hands today.
The Snowflake setup still supports the broader narrative. Its Q2 FY2027 report on September 2 delivered revenue of $1.55 billion, up 35.1% YoY, non-GAAP EPS of $0.62, and raised FY2027 product revenue guidance to $6.07 billion. CEO Sridhar Ramaswamy stated, “AI is bringing new workloads onto the platform.”
What to Watch Next Traders can watch for a hold above Tuesday’s opening levels into the close, particularly given Oracle’s still-negative year-to-date print and its scheduled Q1 FY2027 earnings release, which Oracle confirmed on September 2. That report is the next hard catalyst for the AI cloud infrastructure case, and it’s where reported cloud growth and RPO trends can either extend or unwind today’s move.
The gap between narrative and reported results is where the risk sits. Shareholders sizing their positions may want to keep their AI infrastructure allocations moderate given the capex intensity underlying both Oracle and CoreWeave, and pair their incremental exposure with defined risk parameters.
Oracle’s next earnings report will be a key confirmation point for the RPO trajectory the sell-side is now underwriting. This single figure has driven the AI cloud narrative all year, and any deceleration could test the multiple Morgan Stanley is now willing to pay.
Contact [email protected] for any questions or corrections.
Akcie Oracle v úterý vzrostly téměř o 4 % po sérii optimistických komentářů analytiků před výsledky a díky novému modelu AI od OpenAI. Akcie ale za posledních 12 měsíců stále klesají téměř o 32 %.
Oracle stock ORCL rose on Tuesday as a fresh round of bullish analyst commentary put the technology company back in focus ahead of its fiscal first-quarter earnings report, while the launch of OpenAI’s latest artificial intelligence model provided investors with another reason to reassess the company’s growth prospects.
Shares climbed nearly 4% on Tuesday, although Oracle remains down nearly 17% this year and about 32% over the past 12 months.
The stock has faced pressure as investors have grown increasingly concerned about the debt and cash requirements associated with Oracle’s aggressive expansion of AI infrastructure.
However, expectations for accelerating cloud growth, alongside Oracle’s growing relationship with OpenAI, are helping shift attention back toward the potential upside.
OpenAI launched ChatGPT-6 Astra last week, with its latest model receiving strong attention online and raising expectations that the ChatGPT maker could regain ground in the increasingly competitive AI race.
Anthropic and Alphabet’s Google have periodically received stronger reviews for their own AI models in recent years, but Astra’s reception has fuelled hopes that OpenAI can once again establish a technological lead.
That could matter for Oracle because the two companies have a $300 billion cloud supply agreement, with Oracle rapidly expanding its data-center capacity to meet OpenAI’s computing requirements.
"It looks like OpenAI is turning things around, and Astra is ahead of Fable on multiple benchmarks," Morningstar analyst Luke Yang told MarketWatch, referring to rival Anthropic's Fable model.
"This boosts investors' confidence with Oracle's OpenAI backlog," or the dollar amount of commitments yet to be recognized as revenue.
Yang also pointed to Astra’s ability to perform more complex tasks as a potential driver of additional computing demand.
He said the model has the "complete ability to operate a computer," allowing new use cases and products to potentially "complete entire workflows that previous models aren't able to do."
Astra remains available only to a relatively small group of users for now.
But Yang said that if OpenAI can make a "breakthrough on the product front," it could increase demand for computing power and provide further support for Oracle shares.
Wall Street expects Oracle to report revenue of about $19.1 billion, an increase of nearly 28% from a year earlier, alongside earnings of $1.74 per share.
The options market is pricing in a move of roughly 11.2% in either direction following the results, highlighting the unusually high level of uncertainty surrounding the earnings announcement.
Mizuho reiterated its Outperform rating and $320 price target ahead of the results.
The firm expects Oracle to exceed consensus estimates, driven primarily by stronger-than-expected performance from Oracle Cloud Infrastructure.
Mizuho estimates that approximately 1 gigawatt of capacity will come online in the first quarter, compared with around 1.2 gigawatts delivered during the entirety of fiscal 2026.
The firm said another earnings beat would reinforce improving execution and increase confidence in Oracle’s fiscal 2027 guidance.
Oracle's revenue growth of 17.35% over the last 12 months has also supported the bullish case, while analysts are forecasting 34% revenue growth for fiscal 2027.
Mizuho said maintaining fiscal 2027 revenue guidance will be particularly important as investors assess the potential for delays or disruption surrounding Project Jupiter, Oracle’s major data-center buildout.
The firm sees a path for Oracle shares to re-rate as financing concerns ease, visibility into a free-cash-flow inflection improves, and the company’s Oct. 28 Investor Day provides another potential catalyst.
Financing remains a key concernGuggenheim also maintained a Buy rating on Oracle and a $400 price target ahead of the earnings report.
The firm identified Oracle’s planned $20 billion at-the-market equity raise as the biggest concern weighing on the stock since the company’s fourth-quarter results, even exceeding concerns over its reliance on OpenAI.
Oracle did not issue equity during the fourth quarter of fiscal 2026, but Guggenheim said investors will be looking for evidence of meaningful progress this quarter.
The firm said discussions with rating agencies suggest equity would probably need to form part of the remaining $20 billion financing plan to satisfy debt investors.
Guggenheim nevertheless believes Oracle has moved beyond the riskiest phase of its infrastructure expansion and noted that maintaining an investment-grade credit rating remains the CFO’s top priority.
The latest analyst upgrades and reiterations follow already positive commentary from Wall Street.
Bank of America analyst Tal Liani said he sees an attractive risk-reward setup heading into the earnings announcement. He maintained a Buy rating and a $240 price target.
"We favor the risk/reward of Oracle, as we believe Street consensus already captures the challenging balance sheet fundamentals," Liani wrote on Friday, "yet is not fully incorporating the likelihood of revenue growth acceleration related to reaching DC buildout milestones."
Morgan Stanley analyst Sanjit Singh has similarly described Oracle as a "good setup" heading into earnings and expects cloud revenue growth of 63% from a year earlier.
Despite the optimism surrounding OpenAI and Oracle’s cloud expansion, the company’s growing dependence on a handful of major AI customers presents a separate risk.
A substantial portion of Oracle’s increase in remaining performance obligations has come from large AI contracts.
Oracle has also said that prepaid and customer-supplied hardware associated with large AI agreements now totals $75 billion, reducing the amount of capital it needs to raise for the related data-center construction.
That is positive from a financing perspective, but investors are likely to scrutinize how much of Oracle’s future growth depends on a relatively small group of customers, Axel Rudolph, FSTA, Chief Technical Analyst at IG.com, wrote.
"The market will be particularly interested in developments surrounding Oracle's relationship with OpenAI and other major AI customers," Rudolph said.
With the stock still well below its levels of a year ago, Thursday’s results could prove pivotal in deciding whether Oracle can turn renewed AI optimism into a sustained recovery.
Oracle v srpnu vzrostl o 14,8 % díky rozšiřování partnerství v oblasti AI a cloudových služeb. Klíčový byl i nový krok s Googlem, který integruje Gemini do Oracle AI Agent Studio.
Shares of Oracle Corporation (ORCL +2.35%) gained ground last month as the company expanded its artificial intelligence deals and as investors renewed some of their optimism in the tech space. Strong quarterly results from a handful of AI cloud companies also helped drive Oracle higher.
As a result, Oracle shares jumped 14.8% in August, according to data provided by S&P Global Market Intelligence.
Image source: The Motley Fool.
An expanding AI footprint Oracle is in the midst of expanding its data center capacity to offer more companies cloud-based AI services. And at the beginning of the month, Oracle's stock posted significant gains amid an expanding partnership with Alphabet's Google.
The company said that Google will integrate its latest Gemini AI models directly into Oracle's AI Agent Studio, which will enable Oracle's Cloud Infrastructure (OCI) customers to create and deploy AI agents. This was of particular interest to Oracle shareholders because the company has invested heavily in expanding its OCI to compete in the AI space.
Oracle's share price continued higher during the month after fellow tech peer Microsoft reported strong quarterly results, including $100 billion in annual revenue from its Azure cloud. Investors largely viewed that as proof that investing in building out AI infrastructure can pay off.
Oracle investors have been worried about the company's surging capital expenditures, which rose 162% in fiscal 2026 to $55.7 billion. Microsoft's recent success helped reassure Oracle shareholders that the company could similarly benefit.
And finally, Oracle's share got an additional boost when CoreWeave reported second-quarter revenue growth of 112%, and Nebius reported second-quarter sales that jumped 454%. Both of these companies provide cloud computing to customers, and their rapidly expanding revenue encouraged Oracle shareholders that Oracle is on the right path as it expands its AI cloud services.
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Oracle continues rising, but questions remain Oracle's shares continued to rise in September and recently popped after three analysts raised their price targets for the stock. Their optimism is fueled by Oracle's expanding opportunities in artificial intelligence.
And yet there are still some unanswered questions for Oracle shareholders. The most important being whether the massive financial investments the company is making in AI will actually pay off over the long term.
Investors have grown increasingly skeptical that spending at all costs is the right strategy for an AI company, including Oracle. They'll get some clarity on Oracle's direction later this week when the company reports its fiscal 2027 first-quarter results on Sept. 10.
With Oracle's spending on the rise, and with more likely on the way, Oracle stock could be volatile for a while. It's already down 30% over the past 12 months. I think the stock could still be a good long-term bet, but investors should understand the risks and be prepared for some more share price swings.
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Microsoft, and Oracle. The Motley Fool has a disclosure policy.
Oracle čeká hlavně na to, zda silná poptávka po AI infrastruktuře dál promění jeho cloudový backlog v tržby. Adobe zase řeší, jestli rostoucí adopce AI funkcí začne výrazněji monetizovat.
Key Takeaways ORCL and ADBE report earnings this week. Investors will be focused on the AI narratives surrounding each. The early stages of the Q3 earnings season get underway this week, with Oracle (ORCL - Free Report) and Adobe (ADBE - Free Report) both scheduled to report quarterly results on Thursday, September 10. The releases will be closely watched given the AI-heavy narratives surrounding both, with investor sentiment showing a back-and-forth nature overall in 2026.
Oracle EarningsAs expected, Oracle’s cloud business will be the main focus, with AI infrastructure demand driving strong growth in recent quarters.
Its latest period reflected a strong cloud showing, with total Cloud revenue climbing 47% YoY to $9.9 billion. Cloud Infrastructure revenue of $5.8 billion grew 93% YoY, while Remaining Performance Obligations (RPO) also reached a massive $638 billion.
Growth expectations remain strong for Oracle heading into the release, with the current Zacks Consensus sales estimate of $19.1 billion reflecting 28.2% YoY growth. Earnings are also expected to grow in the double digits, with the $1.74 Zacks Consensus EPS estimate suggesting roughly 18% YoY growth from the same period last year.
Image Source: Zacks Investment Research
The strong RPO figure provides strong visibility concerning future demand, but the key will be how quickly Oracle can convert that backlog into actual revenue. Continued strength in Cloud Infrastructure would help reinforce the AI growth story, particularly following the sizable 93% growth rate posted last quarter.
The spending required to support that demand remains important as well, affecting recent sentiment massively. Oracle has been pouring capital into AI infrastructure and data center capacity, making continued high growth critical as investors weigh the benefits of its aggressive buildout against the high costs.
Adobe AI MonetizationAdobe has continued to post respectable growth despite heavy pressure on shares from AI-related concerns. Results were solid overall in its latest period, with record revenue of $6.6 billion up 13% YoY.
Total Adobe ARR came in at $27.1 billion, while AI-first ARR more than tripled YoY and surpassed $500 million, suggesting its AI offerings are beginning to make a meaningful contribution. Current Zacks Consensus estimates currently call for $6.7 billion in sales and earnings of $6.08 per share, reflecting 11.8% and 14.5% YoY growth, respectively.
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As expected, AI adoption will undoubtedly receive most of the attention. Firefly ARR approached $300 million last quarter, Acrobat AI Assistant ARR nearly tripled, and adoption of Adobe’s agentic capabilities across its enterprise offerings has continued to expand. The biggest question is whether that momentum can increasingly translate into monetization and help ease fears that generative AI will disrupt Adobe’s traditional creative software dominance.
Bottom Line
Oracle (ORCL - Free Report) and Adobe (ADBE - Free Report) will both report on Thursday, providing investors with two important reads on the evolving AI landscape.
Oracle’s release will primarily revolve around its red-hot Cloud Infrastructure business and how quickly its massive backlog is translating into revenue. Adobe faces a different test, with investors likely focused on whether growing adoption of Firefly, Acrobat AI Assistant, and its broader AI offerings can increasingly translate into meaningful monetization.
Morgan Stanley zvýšila cílovou cenu společnosti Oracle na 210 USD, což naznačuje asi 32% potenciál růstu, a vidí ji lépe než Adobe. U Adobe má podvážené doporučení a cílovou cenu 240 USD, tedy zhruba 10% pokles.
Both software giants report earnings Sept. 10, but Morgan Stanley sees very different setups for the two stocks. Summary
Morgan Stanley raised its Oracle target to $210, implying about 32% upside
Oracle Corp. (ORCL, Financials) and Adobe are scheduled to release earnings on the same day. Morgan Stanley thinks this one is considerably better positioned.
The bank boosted its Oracle price target to $210 from $207 signaling about 32% upside but with an Equal-weight rating.
Analyst Sanjit Singh anticipates Oracle's cloud revenue growth to be near the high end of management's 58% to 64% projection, driven by new compute capacity for AI workloads.
Wall Street estimates suggest Oracle's quarterly revenue will grow approximately 28% to $19.13 billion and adjusted earnings will be $1.74 per share.
Adobe has a different problem. Morgan Stanley has an Underweight rating on the stock with a $240 target, which implies around 10% downside.
Not just one quarter of worry. Investors are anxious to see how Adobe's growth strategy will alter under new leadership. Anil Chakravarthy will succeed longstanding CEO Shantanu Narayen on Dec. 1. That makes Sept. 10 very intriguing.
Oracle needs to prove that its big bet on AI infrastructure is boosting its cloud sales. Adobe needs to sell investors on growth holding up through another big leadership change.
More positive on Oracle in the immediate term is Morgan Stanley.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Oracle uzavřel na 158,78 USD, tedy 54 % pod rekordem. Firma ale dál hlásí silný růst: tržby ve fiskálním roce 2026 stouply o 17 % na 67,4 miliardy USD.
Oracle (ORCL +3.08%) closed at $158.78 on Friday, 54% below its record high of $345.72. The stock set that high on Sept. 10 of last year -- one year to the day before its next earnings report, scheduled for Thursday, Sept. 10.
Shares have been in a hole this deep before. Measured on monthly closing prices, adjusted for stock splits, the stock peaked at $45.47 in August 2000 and fell 83% to $7.86 by September 2002. It didn't close a month above the 2000 level until June 2017, nearly 17 years after the peak.
Before that history scares anyone out of the stock, though, it's worth looking at what made the last recovery so slow. It wasn't the business.
Image source: Getty Images.
The 17-year round tripDaily closing prices tell the same story. The stock's best close of 2000 was $46.31, on Sept. 1 of that year. Shares came within 8 cents of that level in December 2014, faded, and finally closed higher on June 21, 2017. Later that day, Oracle reported its fiscal 2017 results.
And the fall itself was enormous. A stock that drops 83% has to rise nearly 480% just to get back to even.
Today's decline has been shallower, but not by as much as the 54% figure suggests. At its low of $114.50 in late July, the stock was down 67% from its high.
What took so long?To me, the striking part of the dot-com episode is what didn't happen. Demand didn't collapse.
Oracle's revenue rose 7% in fiscal 2001 (the company's fiscal years end May 31), then fell about 12% in fiscal 2002 as customers cut back on technology spending. That was the worst single year. In fact, operating income was higher in fiscal 2002, at about $3.6 billion, than it had been in fiscal 2000.
The problem was the starting price. When the stock peaked in August 2000, Oracle was on its way to earning a split-adjusted $0.44 per share in fiscal 2001, the year then underway. The peak price was more than 100 times those earnings.
However, even a growing business can spend years catching up to a price like that.
By fiscal 2017, revenue had more than tripled from fiscal 2000's $10.2 billion to $37.7 billion, and earnings per share had grown about five times, to $2.21. By the time the stock crossed its old peak in June 2017, it traded at about 21 times earnings.
In other words, the stock didn't so much recover as grow into its old price.
This time, the spending is Oracle's ownThe two declines do share one thing: heavy spending sits at the center of both.
But in 2000, the spending at risk belonged to Oracle's customers, and when they pulled back, revenue dipped. Today the heavy spending is Oracle's own -- and demand is the strong part of the story.
Highlighting that demand, Oracle's fiscal 2026 revenue climbed 17% year over year, to $67.4 billion. Cloud infrastructure revenue did even better, rising 77% to $18.1 billion. Remaining performance obligations (contracted future revenue that hasn't shown up in results yet) ended the year at $638 billion, up from $138 billion a year before. And management expects more, confirming a fiscal 2027 revenue target of about $90 billion, or growth of about 34%.
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Paying for that demand is the hard part. Oracle's operations produced a record $32 billion of cash in fiscal 2026, 54% more than the year before. But capital expenditures jumped 162%, to $55.7 billion, leaving free cash flow at negative $23.7 billion.
The comparison to 2000 breaks down at the valuation, though, and in shareholders' favor. Shares have a price-to-earnings ratio of about 27. Management's fiscal 2027 guidance calls for $8.05 of non-GAAP (adjusted) earnings per share, so buyers today are paying about 20 times those expected earnings. That could prove expensive if the margins on Oracle's artificial intelligence (AI) contracts disappoint, but it's nothing like the triple-digit price-to-earnings multiple of 2000.
Ultimately, the 17-year round trip is arguably a lesson about starting prices more than a warning about Oracle. Still, I wouldn't buy the stock today. A company that spent about $24 billion more cash than its operations brought in last fiscal year carries real risk if AI demand cools.
But for investors who already own the stock, the dot-com comparison seems like a weak reason to sell. The last long wait began at more than 100 times earnings. Today's starting point is nowhere near that.
BofA preferuje Oracle před Adobe: u Oracle drží doporučení koupit a cíl $240, u Adobe doporučení prodat s cílem $220. Rozdíl vidí v tom, že Oracle lépe proměňuje poptávku po AI v růst.
report earnings on the same day, September 10, but Bank of America sees the two AI software giants moving in opposite directions.
Analyst Tal Liani maintained a Buy rating and $240 target on Oracle, implying 51% upside, while rating Adobe Sell with a $220 target, implying 17% downside. The contrast reflects one question: Which company is converting AI demand into meaningful financial growth?
Wall Street expects Adobe's fiscal third-quarter earnings to reach $6.08 per share, up from $5.31, as revenue increases 11.7% to $6.69 billion. Those numbers are respectable, but BofA doubts AI is changing Adobe's growth trajectory.
Creative freemium monthly users reached 90 million, rising 70%, while AI-first annual recurring revenue exceeded $500 million, more than tripling. However, AI-first ARR remains below 2% of total ARR.
That gap explains why Liani calls Adobe's strategy “largely defensive.” AI tools may improve retention and engagement without generating substantial new revenue. BofA expects 11% ARR growth, or 9% excluding Semrush, while higher AI usage costs pressure margins.
Oracle's setup is more aggressive. Wall Street projects earnings of $1.74 per share, up 18.4%, and revenue of $19.13 billion, rising 28.1%. BofA expects infrastructure-as-a-service revenue to jump 116% as roughly one gigawatt of data-center capacity comes online.
Oracle also carries a $638 billion backlog. Yet that opportunity is expensive: BofA forecasts $21 billion in quarterly capital spending and $92.5 billion for the fiscal year. Oracle must prove cloud growth can outrun the resulting cash-flow strain.
Broader analyst sentiment supports the split. Adobe carries a Hold consensus with 1.43% downside, while Oracle has a Strong Buy consensus with 60.4% upside.
For investors, Adobe must show AI adoption accelerating monetization, while Oracle must demonstrate capital efficiency. BofA's preference is clear, but each company faces a different earnings test for shareholders on September 10.
Oracle před výsledky čelí očekávanému pohybu 11,2 % po výsledcích za fiskální 1. čtvrtletí 10. září. Wall Street čeká tržby 19,13 miliardy USD a zisk 1,74 USD na akcii.
stock is flashing a stunning pre-earnings signal as options traders brace for an 11.2% move following its fiscal first-quarter report on September 10.
At $157.62, the implied swing is about $17.65, creating a post-earnings range near $140 to $175. Options do not predict direction. They show the volatility priced into the event.
Wall Street expects revenue of $19.13 billion, up nearly 28%, and earnings of $1.74 per share. The test is whether Oracle can convert AI demand into profitable growth without another spending surge.
Oracle's $638 billion backlog equals 9.5 times its $67.4 billion fiscal 2026 revenue. Cloud-infrastructure sales jumped 93% last quarter, showing demand. However, backlog is not revenue. Oracle must deploy servers and data centers enough to fulfill contracts, recognize sales and collect cash.
The financing tension is clear. Oracle generated $32 billion in operating cash flow last year, yet AI data-center investments drove free cash flow to negative $23.7 billion. The company plans to raise $40 billion during fiscal 2027, increasing investor focus on leverage, funding costs and capital returns.
OpenAI provides a catalyst and concentration risk. Its GPT-6 Astra release supported Oracle shares because OpenAI signed a $300 billion cloud-rental agreement with Oracle last year. Evidence that deployment is progressing could validate Oracle's buildout, while delays would amplify doubts.
Analysts remain bullish. Morgan Stanley raised the target from $207 to $210, while Bank of America maintained a Buy rating and $240 target. Consensus is Strong Buy, with a $254.68 target implying 60.4% upside. Oracle remains down 19% this year.
For investors, the report turns on three metrics: cloud growth, backlog conversion and the capex-to-cash-flow trajectory. Strong sales with deteriorating cash flow may disappoint. Better execution and cash generation could unlock a rebound. With an 11.2% swing priced, the market is preparing to deliver a verdict.
Oracle letos odepsala 17,74 % a obchoduje se zhruba 52 % pod konsenzem analytiků. Guggenheim má cílovou cenu 400 USD a doporučení Buy, což znamená více než dvojnásobný potenciál.
Oracle has shed nearly a fifth of its value while its cloud peers climbed, and one Wall Street firm just slapped a price target on it that implies the stock needs to do something it has never done before.
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Oracle currently trades at $158.78, while the consensus Wall Street price target sits at $242.05. That leaves the stock trading roughly 52% below where the analyst community, on average, thinks it belongs.
Oracle (NYSE:ORCL | ORCL Price Prediction) is the enterprise database giant that has spent the last two years reinventing itself as an AI infrastructure builder. Oracle Cloud Infrastructure now sits inside Amazon, Microsoft, and Google data centers, and management has staked the company’s future on the same GPU buildout thesis powering the rest of the megacap tech complex.
The gap matters because the average target is only the floor of the bull case. Guggenheim’s John DiFucci carries a $400 price target and a Buy rating, which is currently the Street high. From here, that would mean the stock more than doubles.
A Cash-Flow Sticker Shock That Erased a Year of Gains The selloff has been driven by one number: capital spending. Oracle burned through $55.66 billion in capex in fiscal 2026 against $31.98 billion in operating cash flow, producing negative free cash flow of roughly $23.69 billion. Management then guided fiscal 2027 net cash capex to around $70 billion and said it plans to raise about $40 billion in debt and equity, including a $20 billion at-the-market equity issuance.
Investors sent the stock down 17.74% year to date and 27.98% over the past twelve months, even as the S&P 500 climbed 12.94% in 2026. Shares have traveled from a 52-week high of $341.82 to a low of $114.50, a peer-shaming drawdown driven almost entirely by fears that the AI capacity binge will compress margins and dilute shareholders before revenue catches up.
The damage is company-specific. Microsoft, Amazon, and Alphabet all posted double-digit cloud growth in the same window and their shares held up. Oracle stands alone as the hyperscaler-adjacent name Wall Street chose to punish.
Why the Sell-Side Is Doubling Down Instead of Downgrading Analysts are looking past the cash burn to a $638 billion remaining performance obligation, up 363% year over year. That backlog is the entire bull case in one number. Management reaffirmed a long-term outlook on the June call of a 31% revenue CAGR and 28% EPS CAGR through fiscal 2030, and CFO Hilary Maxson said steady-state return on invested capital for the GPU and CPU infrastructure business runs in the high 20s at the project level.
Coverage is heavily positive. Alpha Vantage’s tally shows 8 Strong Buy, 28 Buy, 7 Hold, and 1 Sell ratings, and the estimate revision trend has skewed upward with 21 upward EPS revisions against 12 downward for fiscal 2027 over the past 30 days. Fiscal 2027 revenue is guided to $90 billion, with non-GAAP EPS raised to $8.05.
Guggenheim’s $400 target is anchored on three pillars: OCI winning share as a lower-cost AI training and inference platform, the RPO backlog compounding through multi-cloud database partnerships with AWS, Azure, and Google Cloud, and a high-margin migration cycle as on-premise databases shift to Autonomous Cloud Database. The next test comes fast. Oracle reports Q1 fiscal 2027 on September 10, with cloud revenue guided to grow 58% to 64%.
Oracle Is the Cheap Name in a Fully Priced Cloud Cohort The peer group did not sell off with Oracle. Every direct comp is up in 2026, which sharpens the argument that Oracle is a story-specific dislocation.
Microsoft (NASDAQ:MSFT) trades at $499.70, up 3.98% year to date, against an average target of $572.92, implying roughly 15% upside. Coverage is nearly unanimous with 14 Strong Buy, 38 Buy, and 3 Hold calls, but the upside is a fraction of what analysts see in Oracle.
Amazon (NASDAQ:AMZN) sits at $258.51, up 12% YTD, with a consensus target of $328.17 and implied upside of roughly 27%. Analyst posture skews strongly bullish at 15 Strong Buy, 44 Buy, and 2 Hold, and recent commentary has centered on AWS accelerating to 37% growth.
Alphabet (NASDAQ:GOOGL) trades at $338.46, up 8.34% YTD, against an average target of $428.07 for about 26% implied upside. Coverage runs 13 Strong Buy, 45 Buy, and 5 Hold, with Google Cloud’s 82% growth rate anchoring the case.
The largest implied upside in the group sits with Oracle by a wide margin. Even the average target represents a 52% move, and Guggenheim’s $400 print stands at roughly 152% upside. No hyperscaler peer offers a comparable dislocation.
Data Points That Frame the Setup Oracle trades at $158.78 with a consensus target of $242.05, drawn from 42 analysts covering the name. Implied upside to consensus is roughly 52%. The stock’s 17.74% year-to-date decline compares to a 12.94% gain for the S&P 500 through the same period, a spread of more than 30 percentage points.
Forward multiples reflect the reset. Oracle trades at roughly 19 times forward earnings against fiscal 2027 EPS guidance of $8.05. The 50-day moving average sits at $139.84, meaning the recent bounce has carried shares above short-term trend but well below the 200-day at $168.78. Shares climbed 9.97% over the past month as buyers began stepping back in ahead of the September 10 earnings report.
Where I Actually Come Down on Oracle Here The constructive case rests on the RPO backlog converting on schedule and the September 10 earnings report validating the 27% to 29% Q1 revenue guide. The path back to $242 is straightforward if cloud growth prints in the guided 58% to 64% band, capex stays disciplined, and the FY27 EPS number of $8.05 holds. Guggenheim’s $400 requires more, specifically OCI taking real share from AWS and Azure while the Autonomous Database migration cycle compounds.
The bear case sharpens if the $40 billion in planned debt and equity raises turns into meaningfully more dilution, if GPU sourcing costs squeeze the 30% to 40% OCI margin profile management has advertised, or if a handful of AI contracts fail to convert into recurring revenue at the pace RPO implies. Free cash flow at negative $23.69 billion leaves no cushion.
My lean is constructive. The consensus 52% upside is too wide to ignore in a cloud cohort that remains fully priced, and the estimate revision trend is quietly moving the right way. Guggenheim’s double is a stretch that requires everything to break correctly, but the base case at $242 does not.
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