
Oracle (ORCL) Stock Forecast & Price Target
Oracle (ORCL) Analyst Ratings
Bulls say
Oracle's performance indicators reflect a robust growth trajectory, highlighted by an 11% constant currency increase in SaaS revenue and a significant $2.4 billion from Strategic Back-Office SaaS, which grew 16% year-over-year. The company reported cloud revenue of $8 billion, marking a 33% year-over-year constant currency growth, showcasing an upward trend compared to the previous quarter. Additionally, Remaining Performance Obligations (RPO) surged 15% quarter-over-quarter to $523 billion, bolstered by contracts with major clients like Meta and NVIDIA, further signaling a strong demand for Oracle's cloud and enterprise applications.
Bears say
The negative outlook on Oracle's stock stems from its underperformance in key financial metrics, particularly in cloud revenue, which fell short by 1 percentage point below guidance expectations, and a disappointing non-GAAP operating cash flow of $2.1 billion, lower than the anticipated $2.4 billion. Additionally, the company's gross margin continues to decline, with a drop in the non-GAAP gross margin to 67.8% and a subsequent decrease in the operating margin to 41.9%, both factors contributing to concerns over profitability. Overall, Oracle's substantial $12 billion capital expenditure and the increase in lower-margin Infrastructure as a Service revenue have further exacerbated fears regarding its financial health and future performance.
This aggregate rating is based on analysts' research of Oracle and is not a guaranteed prediction by Public.com or investment advice.
Oracle (ORCL) Analyst Forecast & Price Prediction
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