Oracle Corporation (NYSE:ORCL) is one of the most active US stocks to buy according to analysts. On December 15, Phillip Securities lowered the firm’s price target on Oracle to $344 from $350 and maintained a Buy rating on the shares. The firm raised its 2026 capital expenditure outlook for Oracle from $35 billion to $50 billion. The increased spending reflects the firm’s continued confidence in the company’s dual role as a specialized cloud provider/OCI and a comprehensive full-stack AI leader. Earlier ...

Oracle Corporation (NYSE:ORCL) is one of the best Reddit stocks to invest in right now. On December 11, KeyBanc lowered the firm’s price target on Oracle to $300 from $350 with an Overweight rating on the shares. Despite the optimism regarding prospects, the company’s recent results for FQ2 2026 fell short, specifically in the cloud division. Cloud revenue and gross margin missed expectations, and IaaS growth to $4.1 billion was slightly below the anticipated $4 billion. Although the total remaining perf ...

Oracle Corp. (ORCL) Conference Call Summary Company Overview - **Company**: Oracle Corp. (ORCL) - **Market Cap**: $651.6 billion - **Enterprise Value**: $758.1 billion - **Industry**: Americas Software Key Financial Metrics - **Current Price**: $223.01 - **Target Price**: $220.00 - **Price Change**: Downside of 1.3% - **Total Revenue (F2Q)**: $14.926 billion, 0.8% below consensus - **Cloud Revenue Growth**: +33% (constant currency), guidance was +34% - **Gross Margin**: -100 bps below expectations - **Operating Income**: -1.3% below expectations - **Capital Expenditures (CapEx)**: +44% above expectations, raised to $50 billion for FY26 - **Free Cash Flow (FCF) Burn**: ~2x higher than consensus Core Insights and Arguments - **Investor Concerns**: - Financing requirements and mega-tenant concentration risk, particularly related to OpenAI - Stock has declined 11% after the announcement, reflecting concerns over cloud revenue growth and CapEx increases without corresponding revenue uplift - **Management's Response**: - Committed to maintaining investment-grade status - Clarified that $100 billion+ in new financing is not required to fulfill existing backlog - Various approaches available to alleviate capital structure strain, including GPU leasing arrangements Revenue Guidance - **FY26 Revenue Guidance**: Reiterated at $67 billion - **FY27 OCI Guidance**: Raised by $4 billion to $36 billion, reflecting new capacity coming online Market Position and Competitive Landscape - **IaaS Market Position**: - Oracle is currently ranked 4 in the IaaS market, trailing behind AWS, Azure, and GCP - Notable customer wins include Uber, TikTok, and Zoom - Total Remaining Performance Obligations (RPO): $455 billion as of F1Q26 - **Strategic Applications**: - Steady execution in back-office applications (NetSuite and Fusion ERP) targeting both SMB and enterprise demand - Long-term opportunity to convert database support customers to Autonomous Database Risks and Considerations - **CapEx Impact**: - Elevated CapEx may weigh on EPS growth due to gross margin pressures and limited operating leverage - Uncertainty regarding revenue contribution from AI inferencing - **Balanced Risk-Reward**: - Despite early success in scaling OCI, the risk-reward remains balanced due to financial and operational uncertainties Financial Projections - **Revenue Projections**: - FY26: $67 billion - FY27: $86.3 billion - FY28: $118.2 billion - **EPS Projections**: - FY26: $7.38 - FY27: $7.99 - FY28: $10.21 - **P/E Ratios**: - FY26: 30.2x - FY27: 27.9x - FY28: 21.9x Additional Insights - **Long-term Financial Targets**: - FY29 revenue target of over $104 billion with >20% annual EPS growth - **Market Share Dynamics**: - Ongoing market share losses in the database segment, but potential for growth in IaaS and ERP markets - **Investment Framework**: - Oracle is well-positioned to sustain share gains in IaaS due to price/performance advantages, particularly for Generative AI workloads Conclusion - **Overall Rating**: Neutral - **Investment Outlook**: Continued execution and clarity on growth trajectory are needed before further investment commitments are made. The current environment presents a balanced risk-reward scenario for Oracle's stock. References - [1] - [2] - [15] - [16] - [20] - [22]

Core Insights - Oracle reported strong second-quarter fiscal 2026 results with non-GAAP earnings of $2.26 per share, exceeding estimates by 38.65% and showing a 54% year-over-year increase in USD [1] - Revenue growth was driven by a 14% increase year-over-year to $16.1 billion, primarily from cloud infrastructure, which is becoming a preferred choice for AI workloads [2] Revenue Breakdown - Revenues from the Americas rose 17.2% year-over-year to $10.47 billion, making up 65.2% of total revenues [3] - Europe/Middle East/Africa revenues increased 11.2% to $3.76 billion, contributing 23.4% of total revenues, while Asia Pacific revenues grew 4.9% to $1.83 billion, representing 11.4% of total revenues [3] Cloud Performance - Cloud Infrastructure revenues surged 68% in USD to $4.1 billion, with GPU-related revenues growing 177% [4] - Total cloud revenues (SaaS plus IaaS) increased 34% in USD to $8 billion, now accounting for 50% of Oracle's overall revenue [7] Software and Services - Software revenues declined 3% to $5.9 billion, with software license revenues down 21% to $939 million, reflecting a shift to cloud solutions [8] - Services revenues increased 7% to $1.43 billion, with Oracle operating 147 live customer-facing regions and planning 64 more [9][10] Financial Metrics - Non-GAAP total operating expenses rose 17% to $9.3 billion, while non-GAAP operating income increased 10% to $6.7 billion, resulting in a 42% operating margin [12] - As of November 30, 2025, Oracle had cash and cash equivalents of $19.2 billion, with operating cash flow of approximately $0.8 billion [13] Future Guidance - For Q3 fiscal 2026, Oracle expects total cloud revenue growth of 37% to 41% in constant currency and 40% to 44% in USD [18] - Full-year fiscal 2026 revenue is projected at $67 billion, with an additional $4 billion expected in fiscal 2027 due to new commitments [19]

Core Viewpoint - Oracle's stock has experienced significant volatility, losing 14% since its latest quarterly earnings report and 44% since its peak on September 10, raising questions about its future growth potential and investment risks [3][4]. Financial Performance - Oracle's fiscal 2026 second quarter revenue reached $16.06 billion, a 14% increase but $150 million below analyst expectations; cloud revenue was $7.98 billion, up 34%, and cloud infrastructure revenue was $4.1 billion, a 68% increase [12]. - The company's remaining performance obligations stood at $523 billion, a 438% increase, while free cash flow was negative $10 billion, nearly double the consensus [12]. - Capital expenditures are forecasted to be $50 billion, a 136% increase from previous estimates [12]. Debt and Financial Risks - Oracle's total debt has risen to over $93 billion, a 33% increase since 2020, with a debt-to-equity ratio of 3.78 times and a debt-to-EBITDA ratio exceeding 4x [13][14]. - Credit rating agencies have expressed concerns about Oracle's high debt levels, with its debt now two notches above speculative grade [15]. - The company faces significant customer concentration risk, particularly with clients like OpenAI and xAI, which are expected to incur substantial cash burns in the coming years [17][18]. Market Position and Valuation - Oracle's stock trades at a 56% premium compared to cloud peers, indicating high expectations for future growth that have yet to materialize [19]. - Analysts are skeptical about Oracle's ability to finance its ambitious AI build-out, questioning how the company will convert its backlog into actual revenue [20]. Growth Projections - Oracle's executive vice chair projected an eight-fold growth in revenue over the next four years, with expectations for cloud infrastructure revenue to reach $144 billion by fiscal year 2030 [21].

on 10-Dec-2025 10 December 2025 Global Software Global Software: What is in a Datacenter contract? Key takeaways from discussion with a legal expert Mark L. Moerdler, Ph.D. +1 917 344 8506 mark.moerdler@bernsteinsg.com Firoz Valliji, CFA +1 917 344 8316 firoz.valliji@bernsteinsg.com Shelly Tang, CFA +1 917 344 8342 shelly.tang@bernsteinsg.com Given the amount of scrutiny on the recently announced large-scale datacenter commitments, we hosted a discussion with a legal expert who has over 30 years of experien ...

Core Insights - Oracle Corporation reported significant growth in its fiscal 2026 Q2 results, with Total Remaining Performance Obligations increasing by 438% year-over-year to $523 billion, indicating strong future revenue potential [1][5] - The company achieved total quarterly revenues of $16.1 billion, up 14% in USD and 13% in constant currency, driven primarily by a 34% increase in cloud revenues [1][5] - Oracle's GAAP earnings per share rose by 91% to $2.10, while non-GAAP earnings per share increased by 54% to $2.26, reflecting strong operational performance [2][5] Financial Performance - Total Remaining Performance Obligations reached $523 billion, up 438% year-over-year [1][5] - Total revenues for Q2 were $16.1 billion, representing a 14% increase in USD and a 13% increase in constant currency [1][5] - Cloud revenues amounted to $8.0 billion, up 34% in USD and 33% in constant currency [1][5] - Software revenues decreased by 3% in USD to $5.9 billion, down 5% in constant currency [1][5] Income Metrics - Q2 GAAP operating income was $4.7 billion, while non-GAAP operating income was $6.7 billion, reflecting a 10% increase year-over-year in USD [2][5] - GAAP net income was reported at $6.1 billion, with non-GAAP net income at $6.6 billion, marking a 57% increase in USD [2][5] - Q2 GAAP earnings per share increased by 91% to $2.10, and non-GAAP earnings per share rose by 54% to $2.26 [2][5] Cash Flow and Deferred Revenues - Short-term deferred revenues stood at $9.9 billion [3] - Operating cash flow over the last twelve months was $22.3 billion, up 10% in USD [3] Strategic Initiatives - Oracle's Remaining Performance Obligations increased by $68 billion in Q2, driven by new commitments from major clients like Meta and NVIDIA [4] - The company is transitioning to a policy of chip neutrality, focusing on collaboration with various CPU and GPU suppliers to enhance flexibility in its cloud datacenters [4] - Oracle is investing in AI technologies, embedding AI across its software products to automate complex processes and improve service offerings [4] Dividend Announcement - The board of directors declared a quarterly cash dividend of $0.50 per share, payable to stockholders of record as of January 9, 2026 [4]

Core Insights - Oracle Corporation is recognized as a highly profitable tech stock, with a recent price target adjustment by Citi analyst Tyler Radke from $415 to $375, while maintaining a Buy rating due to valuation compression [1][3] Financial Performance - For FQ1 2026, Oracle reported total revenue of $14.9 billion, marking an 11% increase year-over-year, driven primarily by cloud services [2] - Total Cloud revenue grew by 27% to $7.2 billion, with Cloud Infrastructure revenue surging 54% to $3.3 billion, and OCI Consumption revenue increasing by 57% [2] - The company's Remaining Performance Obligations (RPO) saw a significant increase of 359% from the previous year, reaching $455 billion [2] Business Segments - Oracle's core database business demonstrated strong performance, with Cloud Database Services revenue reaching approximately $2.8 billion, up 32% [3] - Autonomous Database revenue grew by 43%, while Multi-cloud REV Database revenue experienced explosive growth of 1,529% in FQ1 [3] - Cloud Application revenue increased by 10% to $3.8 billion, with Strategic Back Office Application revenue specifically growing 16% to $2.4 billion [3] - In contrast, Total Software revenue for the quarter decreased by 2% to $5.7 billion [3] Strategic Positioning - Oracle has established itself as a key player in AI workloads, securing significant contracts with major companies such as OpenAI, Meta, NVIDIA, and AMD [3]

Core Insights - MongoDB (MDB) and Oracle (ORCL) are leveraging cloud migration and artificial intelligence to drive significant growth in the database infrastructure market [1][2] - Both companies have integrated vector search capabilities into their platforms, positioning themselves as essential for AI inferencing [1] - MongoDB focuses on a developer-first, cloud-native NoSQL platform, while Oracle offers robust relational databases and comprehensive application suites [1][2] MongoDB (MDB) Summary - MongoDB is well-positioned for the AI era, with a document-oriented model that efficiently handles complex data types [3] - The Atlas platform is central to MongoDB's growth, with fiscal third-quarter revenue estimates at $591.22 million, a 1.68% year-over-year increase, and Atlas revenues projected at $455.82 million, up 25.7% year over year [3][4] - MongoDB's customer base is expanding, with total customers estimated at 62,000, up 17.9% year over year, and Atlas customers at 59,906, up 17.24% year over year [4] - The Zacks Consensus Estimate for third-quarter earnings is 79 cents per share, down 31.9% year over year, reflecting a focus on innovation over short-term profitability [5] Oracle (ORCL) Summary - Oracle maintains its foundational role in enterprise data infrastructure, adapting to cloud and AI demands with a comprehensive technology stack [6][9] - The fiscal second-quarter revenue estimate is $13.26 billion, reflecting a year-over-year growth of 9.65% [8] - Oracle's Database 23AI and multicloud capabilities enhance its AI-ready infrastructure strategy, with earnings estimated at $1.63 per share, up 10.88% year over year [9] - High capital expenditures and reliance on legacy support revenues may constrain Oracle's near-term free cash flow [10] Valuation and Performance Comparison - MongoDB trades at a forward Price-to-Sales ratio of 11.06X, while Oracle stands at 9.22X, reflecting MongoDB's stronger growth trajectory [11] - Year-to-date, Oracle shares have appreciated 43.5%, while MongoDB shares have increased by 55%, indicating strong investor confidence in both companies [14] - Oracle's stable execution is supported by its scale and recurring enterprise base, while MongoDB's rapid innovation cycle positions it for superior long-term growth [16]

Summary of Oracle Corp Financial Analyst Day Insights Company Overview - **Company**: Oracle Corp - **Industry**: Global Software - **Rating**: Outperform - **Price Target**: $364.00 USD - **Current Price**: $288.63 USD - **Market Cap**: $822.824 billion USD - **Performance**: YTD Absolute Performance of 73.2% [6][10] Key Insights and Core Arguments 1. **Business Model Transition**: Oracle is undergoing its third major business model transition, focusing on cloud services and AI, with expectations to become the largest AI training vendor and the third-largest hyperscaler by revenue [3][4] 2. **OCI Revenue Growth**: Oracle's OCI revenue is projected to grow from $10 billion to $144 billion over five years, with a significant increase in Remaining Performance Obligations (RPO) by $317 billion [3][13] 3. **AI Training Margins**: Concerns regarding low margins in AI training are acknowledged but deemed overblown; Oracle's AI training is expected to become profitable over time, with gross margins projected to reach 25% [2][25] 4. **Client Concentration Risks**: There are concerns about revenue concentration from OpenAI, but Oracle's projected OCI growth suggests multiple revenue drivers beyond this single client [32] 5. **Funding Strategies**: Oracle plans to fund its expansion through a combination of debt, vendor financing, and customer pre-payments, which could mitigate cash flow concerns [33][36] Financial Projections - **Adjusted EPS**: Expected to grow from $6.03 in FY25 to $8.60 in FY27, reflecting a CAGR of 27.5% [5] - **Revenue Growth**: Total revenues projected to increase from $57.399 billion in FY25 to $85.077 billion in FY27, with a CAGR of 21.7% [5] - **Operating Margin**: Expected to remain stable around 41.3% to 43.6% over the forecast period [5] Additional Considerations 1. **Market Positioning**: Oracle is positioned as a key player in the AI and cloud markets, with significant potential for upselling to existing customers [3][25] 2. **Investor Sentiment**: The company is viewed as a "poster child" for AI alongside NVIDIA, indicating that news flow will significantly impact stock performance [26] 3. **Financial Analyst Meeting Expectations**: Anticipation for the upcoming Financial Analyst Meeting includes discussions on cash flow management, revenue guidance, and potential new large deals [34][36] Valuation Metrics - **Adjusted P/E**: Expected to decrease from 47.9x in FY25 to 33.6x in FY27 [9] - **EV/Sales**: Projected to decline from 16.0x in FY25 to 10.8x in FY27 [9] - **PEG Ratio**: Expected to improve from 5.7x in FY25 to 1.2x in FY27, indicating better growth relative to price [9] Conclusion Oracle Corp is navigating a transformative phase with substantial growth potential in cloud and AI services. Despite concerns regarding margins and client concentration, the company's strategic positioning and financial projections suggest a robust outlook for investors. The upcoming Financial Analyst Meeting is expected to provide further clarity on Oracle's growth strategies and financial health.