Oracle Corporation

New York Stock Exchange
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Somewhat Bullish +50

Oracle to report Q4 earnings amid AI trade jitters

📅 Oracle is scheduled to report its fourth-quarter earnings after the bell on Wednesday.

🤖 The company faces market attention due to recent AI trade fluctuations and upcoming IPOs for Anthropic and OpenAI.

🤝 OpenAI is a key customer for Oracle, having signed a $300 billion, five-year deal in 2025.

💰 Analysts expect Oracle to report Q4 EPS of $1.97 on revenue of $19 billion.

📈 This projected performance represents an improvement over the previous year's figures of $1.70 EPS and $15.9 billion revenue.

☁️ The broader Cloud business is anticipated to reach $9.99 billion in revenue for the quarter.

📱 Cloud Applications revenue is expected to hit $4.16 billion, while Cloud Infrastructure is projected at $5.17 billion.

🚀 Cloud Infrastructure revenue shows a massive 90.8% year-over-year improvement compared to the prior period.

📜 Remaining performance obligations (RPOs) are expected to reach $589.5 billion, up 327% from last year.

📉 RPOs serve as a critical metric for investors to gauge demand amid the global AI build-out.

📉 Oracle stock previously dropped after its Q2 earnings in December due to a weak outlook and spending concerns.

📈 Conversely, the stock has risen over 15% in the last 12 months following strong Q3 results and raised 2027 guidance.

📊 Year-to-date, Oracle shares are up 4.8%, outperforming Amazon's 12% gain but trailing Microsoft's decline.

🏆 Google has significantly outperformed peers with its stock rising over 103% driven by Gemini and Cloud Platform growth.

Bullish Signals
  • Oracle signed a $300 billion, five-year deal with OpenAI in 2025, serving as the linchpin of its AI efforts.
  • For the fourth quarter, Oracle is expected to report earnings per share (EPS) of $1.97 on revenue of $19 billion, representing an improvement from the $1.70 and $15.9 billion reported a year ago.
  • Cloud Infrastructure revenue is projected to reach $5.17 billion, marking a whopping 90.8% year-over-year improvement.
  • Remaining performance obligations (RPOs) are expected to reach $589.5 billion, up 327%, indicating strong overall demand for Oracle's cloud services amid the global AI build-out.
  • Oracle stock has climbed more than 15% over the last 12 months, outperforming Amazon which is up roughly 12% in the same period.
  • The company previously raised its 2027 revenue guidance to $90 billion after beating Q3 expectations in March.
Risk Factors
  • Oracle stock took a stinging hit after announcing its second quarter earnings in December on a weak outlook and concerns related to its spending plans.
  • Google (GOOG, GOOGL) has easily outperformed Oracle's peers, surging more than 103% over the past year due to Gemini model improvements and Cloud Platform growth.
Full Analysis
Oracle is set to report its fourth-quarter earnings after the bell on Wednesday, a move occurring against a backdrop of AI-related market volatility and upcoming initial public offerings for competitors Anthropic and OpenAI. The company maintains a significant relationship with OpenAI, which signed a $300 billion, five-year deal in 2025 that serves as a cornerstone for its AI strategy. Analysts expect Oracle to report earnings per share of $1.97 on revenue of $19 billion, representing an improvement from the previous year's figures of $1.70 EPS and $15.9 billion in revenue. The cloud business is projected to reach $9.99 billion, with Cloud Applications anticipated at $4.16 billion and Cloud Infrastructure expected to hit $5.17 billion, marking a 90.8% year-over-year increase. Remaining performance obligations are forecasted to reach $589.5 billion, up 327%, indicating strong underlying demand for the company's cloud services amid the global AI build-out. Oracle stock has gained more than 15% over the last 12 months and outperformed Amazon, though it trails Google, which has surged over 103% in the same period due to Gemini model improvements and Cloud Platform growth.