Research analysts at Zacks Research have raised their earnings per share (EPS) estimates for Oracle Corporation (NYSE: ORCL) for the fiscal year 2026. In a note to investors dated September 23, 2023, Zacks now anticipates that the enterprise software provider will earn $5.25 per share, an increase from their prior estimate of $5.15. This adjustment comes as the broader consensus for Oracle’s current full-year earnings stands at $5.00 per share.
In addition to the FY2026 forecast, Zacks has projected Oracle’s Q4 2027 earnings at $1.77 EPS, FY2027 earnings at $6.22 EPS, and FY2028 earnings at $7.52 EPS. This positive outlook reflects growing confidence in Oracle’s financial performance as it continues to expand its cloud-based offerings.
Several brokerage firms have also provided optimistic evaluations of Oracle’s stock. Scotiabank reaffirmed an “outperform” rating in a report published on September 10. Morgan Stanley raised its target price for Oracle shares from $246.00 to $320.00, also assigning an “equal weight” rating. Melius Research increased its target from $270.00 to $370.00, indicating a strong buy rating. Other firms, including William Blair and Raymond James Financial, have maintained their positive assessments of the stock.
As of now, two research analysts have assigned a Strong Buy rating, while twenty-five have given a Buy rating. Nine analysts issued a Hold rating, and two have rated the stock as Sell. According to data from MarketBeat.com, Oracle currently holds an average rating of “Moderate Buy” with a consensus target price of $304.71.
Market Performance and Stock Overview
Despite the positive outlook from analysts, Oracle’s stock has faced recent challenges. On Friday, shares opened at $283.29, marking a decline of 2.8%. Over the past year, the stock has fluctuated between a low of $118.86 and a high of $345.72. The company has a market capitalization of approximately $805.03 billion and a price-to-earnings ratio of 65.58.
Oracle’s financial health is characterized by a debt-to-equity ratio of 3.33, a current ratio of 0.62, and a quick ratio of 0.62. The recent earnings report, announced on September 9, indicated that Oracle earned $1.47 per share for the quarter, slightly missing the consensus estimate of $1.48 by $0.01. Revenue for the quarter was $14.93 billion, just shy of analyst forecasts of $15.04 billion. Despite this, Oracle reported a year-over-year revenue increase of 12.2% and a net margin of 21.08%.
Institutional Activity and Insider Trading
In recent months, several institutional investors have adjusted their holdings in Oracle. Brighton Jones LLC significantly increased its stake in Oracle by 189.3% during the fourth quarter, now owning 153,580 shares valued at approximately $25.6 million. Similarly, Revolve Wealth Partners LLC raised its position by 8.1%, while Wellington Management Group LLP boosted its holdings by 200.4%.
Insider trading activity has also been notable. On July 3, Executive Vice President Maria Smith sold 10,000 shares at an average price of $232.99, totaling approximately $2.33 million. Following this sale, her remaining shares were valued at about $9.5 million. Additionally, Director William G. Parrett sold 11,500 shares on September 12 at an average price of $306.00, amounting to a total of $3.52 million.
Overall, insiders have sold a total of 112,092 shares valued at roughly $32.96 million over the past three months. Currently, insiders hold about 42.20% of the company’s stock.
Oracle has also declared a quarterly dividend of $0.50, payable on October 23. Shareholders of record as of October 9 will receive this dividend, which translates to an annualized figure of $2.00 and a yield of 0.7%.
With ongoing investments in cloud technology and a robust earnings forecast, Oracle Corporation continues to position itself as a leading player in the enterprise software market.
