Oracle (NYSE:ORCL) Updates Q1 2027 Earnings Guidance

Oracle (NYSE:ORCL) issued an update on its first quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 1.720-1.760 for the period, compared to the consensus earnings per share estimate of 1.610. The company issued revenue guidance of $19.0 billion-$19.3 billion, compared to the consensus revenue estimate of $19.0 billion. Oracle also updated its FY 2027 guidance to 8.050-8.050 EPS.

Oracle Stock Down 2.3%

ORCL stock opened at $201.04 on Thursday. The company’s 50 day moving average price is $183.16 and its 200 day moving average price is $177.98. The company has a debt-to-equity ratio of 3.66, a quick ratio of 1.35 and a current ratio of 1.35. Oracle has a fifty-two week low of $134.57 and a fifty-two week high of $345.72. The firm has a market capitalization of $578.21 billion, a price-to-earnings ratio of 36.09, a PEG ratio of 1.61 and a beta of 1.65.

Oracle (NYSE:ORCL) last announced its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, beating the consensus estimate of $1.96 by $0.15. The company had revenue of $19.18 billion for the quarter, compared to analyst estimates of $19.10 billion. Oracle had a net margin of 25.30% and a return on equity of 62.70%. The firm’s revenue was up 20.6% on a year-over-year basis. During the same period in the prior year, the firm posted $1.70 earnings per share. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. On average, equities research analysts anticipate that Oracle will post 6.09 EPS for the current fiscal year.

Oracle Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be paid a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 1.0%. The ex-dividend date is Friday, July 10th. Oracle’s dividend payout ratio is currently 35.91%.

Analyst Ratings Changes

Several equities analysts have commented on the stock. 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. Jefferies Financial Group dropped their price target on shares of Oracle from $400.00 to $320.00 and set a “buy” rating on the stock in a research note on Thursday, March 5th. UBS Group increased their price target on shares of Oracle from $250.00 to $285.00 and gave the company a “buy” rating in a research note on Tuesday, June 2nd. TD Cowen increased their price target on shares of Oracle from $250.00 to $300.00 and gave the company a “buy” rating in a research note on Monday. Finally, Cantor Fitzgerald increased their price target on shares of Oracle from $229.00 to $284.00 and gave the company an “overweight” rating in a research note on Friday, June 5th. Three research analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $274.97.

Insider Buying and Selling at Oracle

In other news, EVP Stuart Levey sold 15,000 shares of the stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $176.19, for a total value of $2,642,850.00. Following the completion of the sale, the executive vice president directly owned 3,429 shares of the company’s stock, valued at approximately $604,155.51. This represents a 81.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 40.90% of the company’s stock.

Key Headlines Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle delivered a Q4 earnings and revenue beat, with strong cloud infrastructure growth and a record backlog that reinforces demand for its AI/cloud services.
• Positive Sentiment: Management raised guidance for fiscal 2027 profit, signaling confidence in the business outlook despite heavy investment.
• Neutral Sentiment: Oracle also won a $396 million U.S. government contract to modernize HR systems, adding another business win but not likely moving the stock on its own.
• Negative Sentiment: Shares fell after Oracle disclosed a steep increase in AI-related capital spending and additional planned fundraising, fueling fears about rising debt and weaker near-term cash flow.
• Negative Sentiment: Investors are also questioning whether the aggressive spending pace can be sustained without pressuring margins, which has weighed on the broader software sector as well.

Hedge Funds Weigh In On Oracle

Several institutional investors have recently added to or reduced their stakes in the stock. Mcguire Capital Advisors Inc. acquired a new position in Oracle in the 4th quarter valued at about $47,000. Claris Financial LLC acquired a new stake in shares of Oracle during the fourth quarter worth $304,000. Corient Private Wealth LLC lifted its holdings in shares of Oracle by 22.2% during the fourth quarter. Corient Private Wealth LLC now owns 1,166,526 shares of the enterprise software provider’s stock worth $208,274,000 after purchasing an additional 212,230 shares during the period. Alpine Woods Capital Investors LLC lifted its holdings in shares of Oracle by 185.6% during the fourth quarter. Alpine Woods Capital Investors LLC now owns 5,783 shares of the enterprise software provider’s stock worth $1,127,000 after purchasing an additional 3,758 shares during the period. Finally, Strive Financial Group LLC acquired a new stake in shares of Oracle during the fourth quarter worth $2,801,000. Institutional investors and hedge funds own 42.44% of the company’s stock.

Oracle Company Profile

Oracle Corporation is a multinational technology company that develops and sells database software, cloud engineered systems, enterprise software applications and related services. The company is widely known for its flagship Oracle Database and a portfolio of enterprise-grade software products that support data management, application development, analytics and middleware. Over recent years Oracle has expanded its focus to include cloud infrastructure and cloud applications, positioning itself as a provider of both platform and software-as-a-service solutions for large organizations.

Oracle’s product and service offerings include Oracle Database and the Autonomous Database, Oracle Cloud Infrastructure (OCI), enterprise resource planning (ERP), human capital management (HCM) and supply chain management (SCM) cloud applications (often grouped under Oracle Fusion Cloud Applications), middleware such as WebLogic, and developer technologies including Java and MySQL.