TLDR
- Oracle stock rose 5.2% to $150.58 after strong fiscal Q1 results, with revenue up 30% year over year to $19.3 billion
- Cloud infrastructure revenue surged 121% to $7.4 billion, driven by compute sales to OpenAI
- EPS came in at $1.92, beating estimates by $0.18, with adjusted operating margin at 42%
- Larry Ellison canceled a plan to sell up to 50 million of his Oracle stock
- Oracle has roughly $664 billion in remaining backlog and around $30 billion in AI-related deals
Oracle (ORCL) stock climbed 5.2% to $150.58 on Thursday, hitting an intraday high of $152.00, after the company posted better-than-expected fiscal first-quarter results and sentiment around its AI strategy improved.
Total revenue for the quarter came in at $19.3 billion, up 30% year over year and ahead of analyst estimates of $19.1 billion. The stock had closed the previous session at $143.16.
The standout number was cloud infrastructure as a service, which jumped 121% to $7.4 billion, beating the $7.1 billion consensus. That segment sells compute capacity to AI companies, with OpenAI being the key customer.
Adjusted operating margin reached 42%, up from just over 41% a year ago. That improvement came even as data center spending surged to support AI workloads.
EPS landed at $1.92, up 31% year over year and $0.18 ahead of expectations. The earnings beat helped Oracle consume less cash than anticipated.
OpenAI Funding News Adds Tailwind
Reports that OpenAI is exploring a new funding round at a valuation between $1.2 trillion and $1.5 trillion gave Oracle an extra boost. Oracle holds a reported $300 billion, five-year compute agreement with OpenAI, and any sign that OpenAI’s finances are healthy reduces the risk that those commitments go unfulfilled.
Oracle’s remaining performance obligation, essentially its contracted future revenue, sits at roughly $664 billion. AI-related deals in that backlog total around $30 billion.
Larry Ellison also canceled a previously adopted plan to sell up to 50 million of his Oracle stock, removing an overhang that had weighed on sentiment earlier in the week.
Management guided for “at least” $90 billion in revenue for fiscal year 2027, a more confident framing than the prior quarter’s guidance. FY2027 EPS guidance was also modestly raised to $8.10.
Capex expectations for fiscal 2027 held steady at just over $90 billion, in line with the prior quarter’s forecast. Management indicated that number should eventually come down.
Analyst Targets and Ratings
KeyCorp raised its FY2027 EPS estimate to $6.82 from $6.50 and its FY2028 forecast to $8.95 from $8.70 following the results.
DA Davidson and Wolfe Research both carry a buy or outperform rating with a $225 price target. Mizuho has a $320 target. Royal Bank of Canada trimmed its target from $190 to $165 with a sector perform rating.
The consensus across 41 analysts is “Moderate Buy” with an average price target of $252.58.
Oracle carries a market cap of around $455 billion, a P/E of 23.60, and trades at roughly 17 times forward earnings. The S&P 500 trades at around 19 times.
Oracle’s 50-day moving average sits at $141.12. The stock has found consistent buying support above $140 since early August.
The company also announced a quarterly dividend of $0.50 per share, payable October 23, with an ex-dividend date of October 9.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
