Latest news with #ORCL
Yahoo
a day ago
- Business
- Yahoo
Why Oracle Could Be the Next Stock to Join the $1 Trillion Club
Oracle (ORCL) has captivated market attention in recent years. The explosion of artificial intelligence (AI) has turned into a major tailwind for the company, so much so that analysts now see Oracle as a serious candidate for entry into the coveted $1 trillion club. The company wields some of the globe's most robust and cost-effective data center infrastructure tailored for AI workloads. Demand is outstripping supply by a significant margin, prompting Oracle to earmark over $25 billion for new data center construction in fiscal year 2026. 2 Outstanding Stocks Under $50 to Buy and Hold Now Nvidia's Bringing Sovereign AI to Germany. Should You Buy NVDA Stock Here? A $1 Billion Reason to Buy MicroStrategy Stock Here Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Larry Ellison, Oracle's Chairman and CTO, envisions surpassing all competitors combined in data center presence. His ambitious projection places Oracle on track to scale between 1,000 and 2,000 locations over the long haul, marking a tenfold increase from its current footprint. In addition, CEO Safra Katz emphasizes Oracle's trajectory towards becoming not only the foremost cloud application company globally, but also one of the largest cloud infrastructure providers. This trajectory could very well push Oracle toward the $1 trillion mark analysts now anticipate. Oracle (ORCL), based in Austin, Texas, has carved out a commanding position in the enterprise software world. With a market cap of $590 billion, it is a key player offering cloud solutions that help design, build and manage complex deployment models across industries. Over the past 52-weeks, ORCL stock has surged by 45.8%, and within just three months, it has jumped 41%, leaving investors with more than a little to smile about. Despite trading at 39.4 times forward earnings and 10.1 times sales, figures that certainly tower above sector averages, the valuation might not be out of line. The reason lies in Oracle's expanding growth trajectory. On June 11, Oracle reported its fiscal 2025 fourth-quarter earnings that outpaced Wall Street forecasts. The day after the results, ORCL stock surged more than 13% to close at a then-record high of $199.86, leading gains across the S&P 500 Index ($SPX). The company posted $15.9 billion in revenue for the quarter, marking an 11% increase year over year and beating analyst expectations of $15.5 billion. Cloud Services and License Support revenue climbed 14%, while Cloud Licenses and On-premise Licenses rose 9%. What stood out was Oracle's RPO in Q4, which soared 41% to an all-time high of $138 billion. Management signaled that RPO could more than double in fiscal 2026. The company closed the quarter with non-GAAP net income rising 5.9% from the prior year to $4.9 billion. Non-GAAP EPS climbed 4.3% from the year-ago level to $1.70, beating Wall Street's forecast of $1.64. Oracle ended the quarter with $11.2 billion in cash and marketable securities. The company issued robust guidance, forecasting revenue and earnings growth to be 'dramatically higher' in fiscal 2026. That translates to an estimated $67 billion in net revenue, reflecting a nearly 16% year-over-year increase. The acceleration is expected to be driven by Oracle's expanding global footprint and growing capacity utilization. Analysts echo this optimism, projecting fiscal year 2026 EPS to rise 20.2% year over year to $5.29. Looking ahead to fiscal year 2027, the bottom line is forecasted to grow another 14% from the prior year to reach $6.03. Following Oracle's latest quarterly results, Wall Street analysts appear to be reading from the same bullish script. Bank of America took a measured stance by maintaining a neutral rating, but that did not stop it from hiking its price target on ORCL stock from $156 to $220. Meanwhile, KeyBanc could not hide its optimism. Calling the growth projections 'stunning,' it lifted its target to $225 from $200. Deutsche Bank went one step further, pushing the bar to $240 from $200, framing Oracle's earnings as a 'watershed cloud moment.' Consensus on the Street leans heavily positive, assigning ORCL an overall rating of 'Moderate Buy.' Of the 35 analysts tracking ORCL, 21 are firmly in the 'Strong Buy' camp, one favors a 'Moderate Buy,' while 13 recommend to 'Hold' the stock. The average price target of $214.41 represents potential upside of 2%, while the Street-high target of $246 suggests that the stock can climb as much as 17% from the current price level. On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
BMO Capital Markets Lifts Oracle to Outperform After Strong Earnings Report
Oracle Corporation (NYSE:ORCL) is one of the . BMO Capital Markets has turned optimistic on Oracle's future, upgrading the stock from 'Market Perform' to 'Outperform.' Analyst Keith Bachman also raised his price target from $200 to $235, suggesting a potential upside of nearly 18%. Oracle shares have already climbed 20% this year, including a 13% jump following stronger-than-expected fourth-quarter results. A team of IT professionals meticulously crafting a large-scale enterprise performance management system. Bachman highlighted Oracle Corporation (NYSE:ORCL)'s $138 billion in remaining performance obligations (RPO), which surpassed the $132 billion consensus and reflected more than 100% year-over-year growth. RPO represents the total value of contracted services and products yet to be delivered, a key forward-looking indicator. Bachman made the following comment: 'Hence, we think ORCL demand is durable over the next few years with some upside from very large partnerships. If Oracle is close to generating 100% RPO growth during FY26 and meeting revenue targets, we think shares will move higher, all else equal.' Oracle Corporation (NYSE:ORCL) also projected its cloud business could grow more than 40% year over year and expects total revenue in fiscal 2026 to beat Wall Street forecasts. Bachman said these projections support stronger operating income growth. He noted that improvements in cloud database services and subscription revenue could act as further growth drivers, suggesting Oracle's software segment, especially databases, is showing signs of recovery. Oracle Corporation (NYSE:ORCL)'s dividend history is also strong, as it has paid regular dividends to shareholders since 2009. Currently, it offers a quarterly dividend of $0.50 per share and has a dividend yield of 0.93%, as of June 14. While we acknowledge the potential of ORCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
This Dividend Stock Ranks Among the Most Overbought on Wall Street
Oracle Corporation (NYSE:ORCL) is one of Best Dividend Stocks to Buy for Dependable Dividend Growth. According to a report by CNBC, ORCL was the most overbought stock in the S&P index last week, with an RSI of 90.4. The software company's shares jumped nearly 8% on June 13, hitting a record high and building on June 12's 13% surge. A team of IT professionals meticulously crafting a large-scale enterprise performance management system. Over the entire week, Oracle Corporation (NYSE:ORCL) stock climbed over 17%. Analysts surveyed by LSEG have an average price target of about $205, suggesting nearly 5% downside from the June 13 closing price, though many of these targets may increase following the company's recent earnings report. Most of the week's gains came after Oracle Corporation (NYSE:ORCL)'s fiscal fourth-quarter results exceeded Wall Street expectations. CEO Safra Catz noted that cloud infrastructure revenue is projected to grow more than 70% in fiscal 2026, adding that the fiscal year 'will be even better as our revenue growth rates will be dramatically higher.' Oracle Corporation (NYSE:ORCL)'s dividend is also grabbing investors' attention. The company has never missed a dividend since 2009 and has raised its payouts at an annual average rate of over 12% in the past five years. Currently, it pays a quarterly dividend of $0.50 per share and has a dividend yield of 0.96%, as of June 17. Oracle Corporation (NYSE:ORCL) is a global tech company that specializes in cloud-based applications and infrastructure, building on its long-standing expertise in database management systems. While we acknowledge the potential of ORCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
BMO Capital Markets Lifts Oracle to Outperform After Strong Earnings Report
Oracle Corporation (NYSE:ORCL) is one of the . BMO Capital Markets has turned optimistic on Oracle's future, upgrading the stock from 'Market Perform' to 'Outperform.' Analyst Keith Bachman also raised his price target from $200 to $235, suggesting a potential upside of nearly 18%. Oracle shares have already climbed 20% this year, including a 13% jump following stronger-than-expected fourth-quarter results. A team of IT professionals meticulously crafting a large-scale enterprise performance management system. Bachman highlighted Oracle Corporation (NYSE:ORCL)'s $138 billion in remaining performance obligations (RPO), which surpassed the $132 billion consensus and reflected more than 100% year-over-year growth. RPO represents the total value of contracted services and products yet to be delivered, a key forward-looking indicator. Bachman made the following comment: 'Hence, we think ORCL demand is durable over the next few years with some upside from very large partnerships. If Oracle is close to generating 100% RPO growth during FY26 and meeting revenue targets, we think shares will move higher, all else equal.' Oracle Corporation (NYSE:ORCL) also projected its cloud business could grow more than 40% year over year and expects total revenue in fiscal 2026 to beat Wall Street forecasts. Bachman said these projections support stronger operating income growth. He noted that improvements in cloud database services and subscription revenue could act as further growth drivers, suggesting Oracle's software segment, especially databases, is showing signs of recovery. Oracle Corporation (NYSE:ORCL)'s dividend history is also strong, as it has paid regular dividends to shareholders since 2009. Currently, it offers a quarterly dividend of $0.50 per share and has a dividend yield of 0.93%, as of June 14. While we acknowledge the potential of ORCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
12-06-2025
- Business
- Globe and Mail
Oracle Stock Jumps on Q4 Earnings Beat, Upbeat Cloud Forecast
Oracle ORCL stock rose more than 7% in extended-hours trading after the company reported its fourth-quarter fiscal 2025 earnings, wherein both top and bottom lines beat the Zacks Consensus Estimate. Oracle also raised its annual revenue growth forecast, betting on robust demand for its cloud offerings from companies deploying artificial intelligence. The company reported fourth-quarter fiscal 2025 non-GAAP earnings of $1.70 per share, which beat the Zacks Consensus Estimate by 3.66% and increased 5% year over year in USD and 3% in constant currency (cc). Revenues rose 11% in USD and cc year over year to $15.9 billion, driven by continued momentum from its Oracle Cloud Infrastructure ('OCI') business, including winning cloud-computing contracts from AI-focused startups. The figure beat the Zacks Consensus Estimate by 2.31%, encouraging investors' enthusiasm for the company's ascendant cloud business. Revenues from the Americas increased 12.2% year over year to $10.03 billion and accounted for 63.1% of total revenues. Europe/Middle East/Africa climbed 12.9% year over year to $3.99 billion and contributed 25.1% of total revenues. The remaining revenues came from Asia Pacific, which increased 3.9% year over year to $1.87 billion. ORCL's cloud infrastructure business is racing to build out computing capacity for AI startups and other users of the cloud. The company has long tried to find its footing in the lucrative industry of renting computing power and storage, which is dominated by much larger rivals led by AMZN -owned Amazon Web Services, Alphabet GOOGL -owned Google and Microsoft MSFT. Shares of Oracle have gained 5.8% so far this year, outperforming the Zacks Computer and Technology sector's growth of 2.4%. Shares of Microsoft have returned 12.1% year to date, while Amazon and Google have declined 2.8% and 6.3%, respectively. ORCL's Q4 Top-Line Details Cloud services and license support revenues increased 14% year over year and in cc to $11.7 billion, driven by OCI, strategic cloud applications and cloud database services. Cloud license and on-premise license revenues increased 9% year over year (up 8% at cc) to $2 billion. The company's strategic SaaS products are seeing strong bookings and higher renewal rates, contributing to accelerated growth. Total cloud revenues (SaaS plus IaaS) were up 27% year over year at $6.7 billion. Cloud Infrastructure (IaaS) revenues came in at $3 billion, up 52% year over year. Cloud Application (SaaS) revenues of $3.7 billion increased 12% year over year. Fusion Cloud ERP (SaaS) revenues came in at $1 billion, up 22% year over year. NetSuite Cloud ERP (SaaS) revenues of $1 billion increased 18% year over year. Hardware revenues were $850 million, up 1% year over year (flat in cc). Services revenues decreased 2% year over year and in cc to $1.34 billion. Oracle is currently live in 23 cloud regions with its database in cloud services and has another 47 planned. Database subscription revenues, which include database license support, were up 7%. Infrastructure subscription revenues in the quarter, which include license support, were $6.7 billion, up 19%. Application subscription revenues, which include product support, were $5 billion, up 8% year over year. The company's strategic back-office SaaS applications now have annualized revenues of $9.3 billion and were up 20%. Software license revenues were up 8% to $2 billion. Oracle Cloud Infrastructure consumption revenues were up 62% and demand continues to dramatically outstrip supply. Infrastructure cloud services now have an annualized revenues of nearly $12 billion. Cloud database services, which were up 31%, now have annualized revenues of $2.6 billion. Autonomous Database consumption revenue was up 47% on top of the 27% growth reported last year. As on-premise databases migrate to the cloud, either on OCI directly or through the company's database at cloud services with Azure, Google or AWS, Oracle now expects that cloud database revenues collectively will be the third driver of revenue growth alongside OCI and strategic SaaS. Operating Details of Oracle The non-GAAP total operating expenses increased 16% year over year and in cc to $8.86 billion. The non-GAAP operating income was $7.03 billion, up 5% year over year and 4% at cc. The non-GAAP operating margin was 44%, which contracted 244 basis points (bps) on a year-over-year basis and 266 bps in cc. ORCL's Q4 Balance Sheet & Cash Flow As of May 31, 2025, Oracle had cash & cash equivalents and marketable securities of $11.2 billion compared with $17.8 billion as of Feb. 28, 2025. Operating cash flow came in at $20.8 billion while this Zacks Rank #4 (Sell) company reported a negative free cash flow of $394 million, respectively. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. ORCL's remaining performance obligations now stand at $138 billion, up $8 billion sequentially and 41% from last year. Cloud RPO grew 56% on top of the 80% growth last year and now represents nearly 80% of total RPO. Approximately 33% of the total RPO is expected to be recognized as revenues over the next 12 months. The company purchased more than 1 million shares for a total of $150 million. Oracle also announced that its board of directors declared a quarterly cash dividend of 50 cents per share of outstanding common stock. This increased dividend will be paid to stockholders of record as of the close of business on July 10, 2025, with a payment date of July 24, 2025. Guidance For the first quarter of fiscal 2026, Oracle provided specific financial targets assuming current currency exchange rates. Total revenues are expected to grow 11-13% in cc and 12-14% in USD. Total cloud revenues are projected to grow 26-30% in both cc and USD. Non-GAAP earnings per share are expected to be in the range of $1.44-$1.48 in cc (representing 4-6% growth) and between $1.46 and $1.50 in USD (representing 5-7% growth). The guidance assumes a base tax rate of 19%, though management noted that one-time tax events could cause actual rates to vary. Currency is expected to have a modest 2 cents positive effect on EPS and a flat to 1% positive effect on revenues, depending on rounding. Oracle provided robust guidance for fiscal 2026, expressing strong confidence in accelerating growth rates. The company expects total cloud revenues (applications plus infrastructure) to grow more than 40% in cc, representing a significant acceleration from the 24% growth achieved in fiscal 2025. Cloud infrastructure revenues are projected to grow even more dramatically at over 70%, up from 51% in the prior year. Total company revenues are expected to reach at least $67 billion, representing 16% growth in cc and exceeding their previous guidance by more than $1 billion. RPO is anticipated to grow more than 100% in fiscal 2026, reflecting strong contracted future business. Oracle also indicated that capital expenditures will increase substantially to more than $25 billion in fiscal 2026, up from $21.2 billion in fiscal 2025, as they work to meet overwhelming demand from their backlog and bring more capacity online. Management expressed confidence that this increased investment will drive further revenues and profit growth acceleration. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. 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