Oracle is scheduled to release its fiscal second-quarter earnings after trading ends on Monday, and analysts are keenly anticipating positive results, especially from its cloud services segment. The tech giant is expected to report higher revenue and earnings compared to the previous year, driven primarily by growth in cloud services.
Among the 17 analysts surveyed by Visible Alpha, a slight majority—9 analysts—have issued a “buy” rating for Oracle, while 8 analysts recommend a “hold.” The average price target for the company’s stock is approximately $178, which reflects a modest decline of over 7% from its intraday price on Friday.
Analysts project Oracle will generate revenue of $14.13 billion, marking a 9% increase year-over-year. Expected net income stands at $3.05 billion, or $1.07 per share, compared to last year’s $2.50 billion, or 89 cents per share. Notably, Oracle’s cloud services, which constitute its largest revenue source, are anticipated to report earnings of $5.98 billion, representing a substantial 25% growth compared to the same quarter last year.
On Friday, Oracle’s stock rose by more than 2.9%, reaching $191.59, and has seen an impressive 80% increase throughout 2024, buoyed by excitement surrounding artificial intelligence advancements. Last quarter, Oracle not only met but exceeded analysts’ expectations, citing a significant surge in demand for cloud-based training of AI large language models.
As Oracle heads into this earnings report, shareholders and market watchers remain optimistic about the company’s trajectory, particularly in relation to its cloud services and AI initiatives. This positive outlook underscores Oracle’s strong positioning in the tech sector and its ability to innovate and grow in an increasingly competitive landscape.