From Nasdaq:

Oracle stock has lagged behind other software stocks, dropping 10% in the past six months. However, shares are up 6% this year. Second-quarter earnings will be reported Monday after the closing bell, with Barclays suggesting achievable third-quarter expectations and potential for growth, making it a possible buying opportunity for investors.

Despite a small upcoming quarter for Oracle, the company has shown revenue growth and improvement in its Cloud business, attributing to a shift of products such as Fusion, NetSuite, and OCI to the cloud. Strategic partnerships with Microsoft and Nvidia emphasize Oracle’s commitment to AI. Positive earnings and strong guidance are needed for the stock to continue rising.

Expectations for Oracle’s earnings in the quarter ending in February include an estimated $1.38 per share on revenue of $13.31 billion. Full-year estimates predict 8.4% earnings growth to $5.55 per share and a 7.5% revenue increase to $53.7 billion. The company has seen upward revisions in earnings estimates due to M&A activity.

Oracle has seen consistent revenue beats over the past few quarters driven by cloud infrastructure and autonomous database segment revenue growth. The transition to a subscription model has led to stable revenue growth. In the just-ended quarter, the cloud business grew 25% year over year, with strong performance in both Infrastructure as a Service and Software as a Service.

In the last quarter, Oracle beat estimates with adjusted EPS of $1.34 and revenue of $12.94 billion. Cloud revenue totaled $4.8 billion, with infrastructure revenue surging 52% year over year to $1.6 billion. Total Remaining Performance Obligations climbed to over $65 billion, exceeding annual revenue. Oracle has the potential to regain momentum and demonstrate leadership in the cloud sector.



Read more at Nasdaq:: Oracle (ORCL) Q3 2024 Earnings: What to Expect