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Austin, Texas-based Oracle Corporation (ORCL) offers products and services that address enterprise information technology environments. Valued at a market cap of $442.7 billion, the company offers cloud solutions and services that can be used to build and manage various cloud deployment models. It is expected to announce its fiscal Q3 earnings results on Monday, Mar. 10.
Ahead of this event, analysts project the computer software giant to report a profit of $1.18 per share, up 5.4% from $1.12 per share in the year-ago quarter. The company has topped Wall Street's earnings estimates in three of the last four quarters while missing on another occasion. Its earnings of $1.15 per share in the previous quarter fell short of the consensus estimates by 2.5%.
For fiscal 2025, analysts expect Oracle to report an EPS of $5, up 8.2% from a profit of $4.62 per share in fiscal 2024.
Shares of ORCL have soared 38.1% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 22.9% rise and the Technology Select Sector SPDR Fund’s (XLK) 12.8% return over the same time frame.
On Jan. 27, shares of ORCL crashed 13.8% as the latest version of the Chinese artificial intelligence (AI) model DeepSeek was unveiled last week, sending shockwaves through the world of AI. AI stocks were hit across the board, and infrastructure players like Oracle were also affected. The stock plummeted because some investors believe DeepSeek will drastically reduce the need for the data centers Oracle and others operate.
On top of that, Oracle’s shares plunged 6.7% after its Q2 earnings release on Dec. 9 as the company delivered slightly weaker-than-expected Q2 earnings. However, the top-line rose 9% from the year-ago quarter primarily due to continued momentum from its Oracle Cloud Infrastructure (OCI) business. Moreover, its bottom-line figure also increased by 9.7% annually.
Wall Street analysts are moderately optimistic about Oracle’s stock, with a "Moderate Buy" rating overall. Among 33 analysts covering the stock, 21 recommend "Strong Buy," 11 suggest “Hold,” and one indicates a “Strong Sell” rating. This configuration is more bullish than three months ago, with 19 analysts suggesting a “Strong Buy.”
The average price target for ORCL is $194.68, which indicates a healthy 23% potential upside from the current levels.
