Key Stats for Oracle Stock
- Price change for Oracle stock in Last 6 Months: 6%
- $ORCL Stock Price as of Sep. 10: $153
- 52-Week High: $330
- $ORCL Stock Price Target: $243
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What Happened?
Oracle (ORCL) stock jumped 6% in extended trading after the company posted a strong beat on both earnings and revenue for its fiscal Q1, which ended August 31.
- Adjusted earnings came in at $1.92 per share, well above the $1.74 Wall Street expected.
- Revenue grew almost 30% year over year to $19.35 billion, also topping estimates of $19.13 billion.
- Net income rose to $4.68 billion, up from $2.93 billion a year ago.
- The bigger story was cloud growth. Cloud revenue jumped 62% to $11.61 billion, beating the $11.51 billion analysts had forecast.
- Cloud infrastructure revenue more than doubled to $7.4 billion, easily clearing the $7.09 billion consensus.
- Software revenue was the one soft spot, slipping about 3% to $5.55 billion.
Oracle’s backlog kept climbing too. Remaining performance obligations, which represent contracted but not yet recognized revenue, hit $664 billion, above the $630.6 billion analysts expected.
CEO Clay Magouyrk said Oracle closed more than $30 billion in new AI contracts during the quarter without needing extra capital.
That AI buildout is expensive, though. Capital expenditures soared to $28.5 billion from $8.5 billion a year ago, and Oracle burned through $5.4 billion in negative free cash flow, up from $362 million a year earlier.
The company now carries $125 billion in debt, more than most of its hyperscaler rivals.
Looking ahead, Oracle guided for adjusted earnings between $1.85 and $1.93 per share next quarter, with revenue growth of 30% to 34%.
For the full 2027 fiscal year, the company now expects $8.10 in adjusted earnings per share on at least $90 billion in revenue, both slightly above what analysts were modeling.
Investors had also been watching for updates on a delayed natural gas pipeline tied to a New Mexico data center.
Finance chief Hilary Maxson told reporters that nothing suggests New Mexico or any other site is behind the schedule Oracle built into its fiscal 2027 outlook.
Magouyrk added that Oracle is still working to secure an air permit for the site.
The quarter also brought new business wins, including AI agents built for human resources teams and a Pentagon software contract worth up to $7 billion over ten years.
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What the Market Is Telling Us About Oracle Stock
Oracle stock had lost 22% of its value this year heading into the report, so Thursday’s earnings beat gave investors a reason to push shares higher again.
The jump suggests the market cares most about cloud infrastructure growth and AI contract demand right now, since both categories beat expectations comfortably.
Still, the size of Oracle’s spending and its climbing debt load remain real concerns.
Negative free cash flow widened sharply, and capital expenditures nearly tripled from last year.
For now, though, strong cloud numbers and record backlog growth were enough to convince investors that Oracle stock’s AI bet is paying off.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
