
Oracle (ORCL) Stock Forecast & Price Target
Oracle (ORCL) Analyst Ratings
Bulls say
Oracle's financial performance reflects a strong growth trajectory, particularly in its cloud revenue, which reached $8 billion with a 33% year-over-year constant currency growth. The company's Strategic Back-Office SaaS segment generated $2.4 billion, marking a 16% year-over-year increase and contributing to an impressive surge in Remaining Performance Obligations (RPO), which rose to $523 billion, a 433% year-over-year increase. Additionally, Oracle’s non-GAAP EPS aligns with market expectations and is projected to grow between 16%-18%, illustrating sustained profitability amid rising demand for its enterprise applications and cloud infrastructure offerings.
Bears say
Oracle's financial outlook appears negative due to a cloud revenue shortfall of 1 percentage point below guidance, alongside a disappointing FCF performance driven by substantial capex spending of $12 billion. Furthermore, the company's non-GAAP gross margin declined to 67.8%, a 90 basis points sequential drop, largely attributed to an increased contribution from IaaS with lower profit margins, which is concerning for profitability. Additionally, Oracle's operating margin of 41.9% fell short of consensus expectations, and operating cash flow of $2.1 billion was also below the anticipated $2.4 billion, highlighting broader financial challenges within the company.
This aggregate rating is based on analysts' research of Oracle and is not a guaranteed prediction by Public.com or investment advice.
Oracle (ORCL) Analyst Forecast & Price Prediction
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