Oracle Corporation Conference Call Summary Company Overview - **Company**: Oracle Corporation - **Industry**: Software - **Headquarters**: Austin, Texas - **Employees**: Approximately 164,000 - **FY23 Revenue**: $50 billion - **Public Since**: 1986 Key Financial Highlights - **2Q/Nov Results**: - Revenue growth of 13% year-over-year - Cloud infrastructure growth of 66% - Revenue backlog increased by $68 billion, driven by Meta and Nvidia deals - **Future Revenue Guidance**: - FY26 revenue target remains at $67 billion - FY27 revenue guidance raised from $85 billion to $89 billion - **Earnings Estimates**: - FY27 revenue estimates increased from $83.6 billion to $87.9 billion - Non-GAAP EPS estimate raised from $7.71 to $7.80 Backlog and Revenue Conversion - **Backlog Growth**: - Investors are focused on converting backlog and capital expenditures into revenue - Current revenue growth of 13% aligns with previous year’s 9% - SaaS growth of 11% fell short of Oracle's guidance for acceleration - **Future Expectations**: - Anticipated acceleration in cloud infrastructure growth to over 80% in 3Q/Feb - Concerns about revenue upside being conservative or pressure in non-IaaS segments Debt and Margins - **Debt Levels**: - Total debt under $100 billion, maintaining investment-grade rating - **Margin Performance**: - Gross margin dollar growth at 7%, in line with expectations - Operating margin dollar growth at 10%, below the 12% estimate - Operating cash flow of $2.1 billion, below the $3.2 billion estimate - **Capital Expenditures**: - Capex of $12 billion exceeded the $9.2 billion estimate, leading to a free cash flow miss Valuation and Price Target - **Current Valuation**: - Shares trading at 28x CY26e non-GAAP EPS, in line with Microsoft and Amazon - **Price Target Adjustment**: - Price target lowered from $380 to $325 due to lighter results and increased uncertainty around financing outlook Market Metrics - **Market Capitalization**: $619 billion - **52-week Price Range**: $328.33 - $122.82 - **Average Daily Volume**: 4,286,000 shares Risks and Considerations - **Upside Risks**: - Potential market share gains from competitors like Workday and SAP - **Downside Risks**: - Execution risks from recent sales re-organization - Limited traction with Oracle's Cloud offerings - Increased competition in the software industry Conclusion - **Investment Rating**: Buy - **Forecasted Stock Return**: 46.6% including a 0.9% dividend yield - **Overall Outlook**: Despite some short-term challenges, the long-term growth potential remains compelling, particularly with the significant backlog and anticipated revenue growth in cloud infrastructure.

Company Overview - QXO, Inc. (NYSE: QXO) has transitioned from being a reseller of business application software to focusing on disruptive initiatives in the North American building products distribution industry, gaining favor with the investment community [1] Investment Community Sentiment - The company appears to have garnered positive attention from investors, indicating a shift in perception regarding its business model and potential for growth in the building products sector [1]