Oracle Corporation Set to Reveal Earnings Amid Market Dynamics
Austin, Texas-based Oracle Corporation (ORCL) provides a range of products and services catering to enterprise information technology. With a market capitalization of $442.7 billion, Oracle specializes in cloud solutions that aid in building and managing diverse cloud deployment models. The company is scheduled to announce its fiscal Q3 earnings results on Monday, March 10.
Ahead of the earnings announcement, analysts forecast that the software giant will report a profit of $1.18 per share, reflecting a 5.4% increase from $1.12 per share in the same quarter last year. Oracle has surpassed Wall Street’s earnings expectations in three of the past four quarters, although it did fall short once. In the previous quarter, Oracle reported earnings of $1.15 per share, which missed consensus estimates by 2.5%.
Fiscal 2025 Projections Show Continued Growth
For fiscal 2025, analysts predict that Oracle will achieve an earnings per share (EPS) figure of $5, representing an 8.2% increase from the $4.62 per share reported in fiscal 2024.
Over the past year, Oracle’s shares have increased by 38.1%, outperforming the S&P 500 Index’s (SPX) rise of 22.9% and the Technology Select Sector SPDR Fund’s (XLK) gain of 12.8%.
Market Reactions to AI Developments and Earnings Reports
Shares took a hit on January 27 when Oracle’s stock fell 13.8%, following the announcement of the Chinese AI model DeepSeek. Investors feared that advancements in AI could decrease the need for data centers, impacting companies like Oracle. Additionally, the shares dropped 6.7% after the release of Q2 earnings on December 9, which were slightly below expectations; however, Oracle’s top-line revenue still grew by 9% year-over-year, buoyed by strong performance in its Oracle Cloud Infrastructure (OCI) division. Its bottom-line figures also improved by 9.7%.
Analysts Maintain a Positive Outlook
Wall Street is cautiously optimistic regarding Oracle’s prospects, with a “Moderate Buy” rating prevailing. Of the 33 analysts monitoring the stock, 21 recommend a “Strong Buy,” 11 suggest “Hold,” and one has issued a “Strong Sell” rating. This is an improvement from three months ago when only 19 analysts favored a “Strong Buy.”
The average price target set for ORCL is $194.68, indicating a potential upside of 23% from current levels.
On the date of publication, Neharika Jain did not hold (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.
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