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Austin, Texas-based Oracle Corporation (ORCL) offers cloud solutions and services that can be used to build and manage various cloud deployment models. With a market cap of $477.8 billion, Oracle operates as one of the largest enterprise-grade database, middleware and application software providers. The tech giant is expected to release its Q2 earnings for 2025 on Monday, Dec. 9.
Ahead of the event, analysts expect Oracle to report a profit of $1.18 per share, up 12.4% from $1.05 per share reported in the year-ago quarter. The company has surpassed or matched Wall Street’s earnings estimates in each of the past four quarters. Its adjusted EPS for the last reported quarter surged 24.2% year-over-year to $1.18, exceeding the consensus estimates by 12.4%.
For fiscal 2025, analysts expect Oracle to report an adjusted EPS of $5, up 8.2% from $4.62 in fiscal 2024. In fiscal 2026, its adjusted EPS is expected to grow 15% year-over-year to $5.75.
ORCL stock prices have skyrocketed 63.5% in 2024, outperforming the S&P 500 Index’s ($SPX) 22.1% gains and the Technology Select Sector SPDR Fund’s (XLK) 19.6% returns on a YTD basis.
Oracle had a great start to the year. Its stock prices have surged by double-digit figures following the release of its quarterly earnings in each of the past three quarters. After its Q1 2025 earnings were released on Sept. 9, its stock prices soared 11.4% in the next trading session and maintained a positive momentum for the next four sessions. The company reported a robust 6.9% year-over-year growth in total revenues, reaching $13.3 billion, primarily driven by the continued growth in cloud services revenues over the past quarters. Its cloud services revenues surged 21.3% compared to the year-ago quarter, totaling $5.6 billion.
Moreover, the company showcased effective cost management leading to a net margin expansion of 258 basis points to 22%, translating into a 21% year-over-year growth in net income to $2.9 billion.
The consensus opinion on ORCL stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 30 analysts covering the stock, 18 recommend a “Strong Buy,” and 12 advise a “Hold” rating. The mean price target of $179.53 suggests a potential upside of 4.1% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
