Oracle’s Q2 Print Due Monday After The Close: Analysts, Retail Exude Optimism

Oracle Corp. ($ORCL), a provider of integrated suite of applications, plus secure infrastructure in its namesake cloud, will release its fiscal year 2025 second-quarter results after the market closes on Monday.

Retail sentiment toward the stock has turned ‘extremely bullish’ (82/100) on Stocktwits, from ‘bullish’ a day ago, with an accompanying increase in message volume to ‘extremely high.’

ORCL sentiment and message volume December 9, 2024, as of 3:41 am ET | Source: Stocktwits

Q2 Expectations

Analysts, on average, expect Oracle to report second-quarter non-GAAP earnings per share (EPS) of $1.48, compared to the year ago's $1.34 and the guidance of $1.45-$1.49.

Revenue is estimated to improve 9.12% year-over-year (YoY) from $12.94 billion to $14.12 billion. The guidance issued on Sept. 9 called for 8-10% revenue growth, with 24%-26% cloud revenue growth.

Oracle’s revenue trailed expectations for three straight quarters before outperforming expectations in the September quarter

In the first quarter, total remaining performance obligations rose 53% YoY to $99 billion, cloud revenue, including infrastructure-as-a-service and software-as-a-service, jumped 21% to $5.6 billion, or roughly 42% of the total revenue.

Sell-Side Take

A slew of analysts raised their price targets for Oracle stock ahead of the quarterly print, Fly reported. 

TD Cowen analyst Derrick Wood upped his price target from $190 to $210 but maintained a ‘Buy’ rating. Looking ahead to the earnings release, the analyst said operating cash flow will likely continue to see strong momentum but he warned of forex headwinds.

The analyst said he was bullish on demand trends and Oracle’s growth acceleration framework.

Barclays also increased the price target for Oracle stock from $190 to $220 and maintained an ‘Overweight’ rating. Software is back in favor, and valuations have now caught up with historical averages, analysts at the firm said.

The firm sees scope for further upside as estimates have not moved higher yet and as base valuations shift out to 2026.

Jefferies’ Brent Thill, while raising the stock price target from $190 to $220, said second-quarter expectations are elevated, and longer-term targets factor in a multi-year growth acceleration. 

The firm’s survey showed modest pipeline improvement, driven by infrastructure and artificial intelligence initiatives and slightly offset by Apps. 

Oracle Stock

Oracle shares ended Friday’s session up 2.93% at $191.69, and they have jumped 84% for the year.

The average analysts’ price target for Oracle shares is $182.96, according to TipRanks, suggesting scope for a 4.55% downside from current levels.

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