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Oracle Corporation (ORCL), headquartered in Austin, Texas, offers products and services that address enterprise information technology environments. The company is valued at $373.9 billion by market cap, and its software runs on network computers, personal digital assistants, set-top devices, PCs, workstations, minicomputers, mainframes, and massively parallel computers. The IT services giant is expected to announce its fiscal first-quarter earnings for 2025 on Monday, Sep. 9.
Ahead of the event, analysts expect ORCL to report a profit of $1.05 per share on a diluted basis, up 10.5% from $0.95 per share in the year-ago quarter. The company beat the consensus estimates in each of the last four quarters. It reported an adjusted EPS of $1.35 in the previous quarter, surpassing the consensus estimate marginally.
For the full year, analysts expect ORCL to report EPS of $5.02, up 8.7% from $4.62 in fiscal 2024.
ORCL stock has outperformed the S&P 500’s ($SPX) 14% gains on a YTD basis, with shares up 28.7% during this period. Similarly, it outperformed the S&P 500 Technology Sector SPDR’s (XLK) 9.1% gains over the same time frame.
On Jun. 12, ORCL shares climbed over 13% after it announced cloud infrastructure deals with Microsoft Corporation (MSFT), OpenAI, and Alphabet Inc.’s (GOOGL) Google Cloud that overshadowed weaker-than-expected Q4 sales announced the previous day. On a positive note, ORCL signed over 30 AI sales contracts worth more than $12.5 billion in the last quarter.
Looking back in fiscal 2024, ORCL’s revenues were up 6% year over year to $53 billion, and cloud services and license support revenues were up 12% to $39.4 billion. Looking ahead to fiscal 2025, management expects double-digit revenue growth. It also projects that revenue from cloud infrastructure services will surpass the impressive 50% growth achieved in fiscal 2024.
Analysts’ consensus opinion on ORCL stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 29 analysts covering the stock, 17 advise a “Strong Buy” rating, and 12 give a “Hold.” ORCL’s average analyst price target is $149.64, indicating a potential upside of 10.3% from the current levels.
On the date of publication, Kritika Sarmah 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. For more information please view the Barchart Disclosure Policy here.
