TLDR
- Oracle reports Q1 FY27 earnings on September 10 after the bell
- Guggenheim reiterates Buy rating with a $400 price target, calling ORCL its “Best Idea” and a “Decade Stock”
- Wall Street expects EPS of $1.74 (up 18% year-over-year) and revenue of $19.13 billion (up 28%)
- Cloud Services guidance points to 57%-63% growth in constant currency for Q1
- ORCL holds a Strong Buy consensus from 27 analysts, with an average price target of $257.36, implying 58% upside
Oracle is set to report fiscal first-quarter 2027 earnings on Thursday, September 10, after the market closes. All eyes are on whether the company can keep up the momentum from a strong Q4.
Wall Street is forecasting EPS of $1.74, which would mark 18% year-over-year growth. Revenue is expected to come in at $19.13 billion, up 28% from the same period last year. ORCL stock is up 8.4% over the past month, though it remains down around 16% year-to-date.
Guggenheim analyst John DiFucci reiterated a Buy rating ahead of the print, setting a $400 price target. He called Oracle his firm’s “Best Idea” and described it as a “Decade Stock.” DiFucci ranks No. 238 out of more than 12,500 analysts tracked on TipRanks, with a 63% success rate and an average return of 18.2% per rating.
Capital Raise in Focus
One of the bigger overhangs heading into earnings is Oracle’s equity raise. DiFucci points to the $20 billion at-the-money offering as the main drag on ORCL stock since Q4 FY26 results, more so than concerns around OpenAI concentration risk.
Oracle did not issue any equity in Q4 FY26, and investors will be watching for progress on that front. DiFucci says getting most of the raise done would likely be viewed positively in the near term.
However, he cautioned that another raise may still be on the table. Oracle plans to raise a total of $40 billion in FY27, with no additional capital raises expected for the rest of calendar year 2026. The remaining $20 billion was widely expected to come from debt in early 2027, but DiFucci says recent talks with rating agencies suggest equity could be part of the mix.
Cloud Growth and Margins
Oracle’s Q1 FY27 Cloud Services guidance calls for 57% to 63% growth in constant currency. DiFucci says that implies a notable IaaS ramp, with just over $9 billion of new IaaS annual recurring revenue coming online this quarter, compared to $4.2 billion in Q4 FY26.
That aligns with comments from co-CEO Clay Magouyrk, who said new capacity in Q1 FY27 should be near 1 gigawatt, following 1.2 gigawatts added across all of FY26.
On margins, DiFucci expects cloud gross margin to face some pressure due to the lag between capacity coming online and customers going live. Operating margin is expected to hold up better, supported by cost controls. He also flagged that FY28 capital spending is likely to come in higher than FY27, not flat as many currently expect.
Partner checks cited in the note point to stable-to-improving trends across Oracle’s SaaS and database businesses.
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