Analyst Explains Why Oracle (ORCL) Valuation Is Still Attractive Despite Post-Earnings Surge

Core Viewpoint - Oracle Corporation (NYSE:ORCL) is experiencing significant stock price appreciation following strong quarterly results and is expected to continue delivering impressive revenue growth in the coming years [1][3]. Group 1: Financial Performance and Projections - Analysts project Oracle's revenue and EPS for FY28 to increase by 25% to 30%, with overall revenue growth approaching 50% in the next few years [2]. - The company's booked revenue is anticipated to exceed $0.5 trillion, indicating robust demand for its services [3]. Group 2: Competitive Advantages - Oracle maintains a strong market position in enterprise databases and ERP software, catering to large clients such as banks and hospitals [3]. - The company differentiates itself by offering cost-effective cloud services while integrating SaaS, ERP, and HCM, which creates high switching costs for clients [3]. - Oracle's competitive advantages include a large and experienced direct sales force, a founder-driven management team focused on maintaining a leading intellectual property portfolio, and high client retention rates in the mid-90% range [4][5]. Group 3: Future Outlook - There are expectations for additional contracts and bookings in the upcoming months, with an AI world conference scheduled next month in Las Vegas, where further positive developments are anticipated [2]. - The stock is currently trading at a mid-30s earnings multiple for FY28, comparable to Microsoft, suggesting it is not overly expensive despite recent gains [2].