
Oracle (ORCL) Stock Forecast & Price Target
Oracle (ORCL) Analyst Ratings
Bulls say
Oracle's financial performance reflects strong growth momentum, highlighted by an 11% year-over-year increase in Software as a Service (SaaS) revenue, with Strategic Back-Office SaaS achieving a notable 16% growth, contributing to a robust Remaining Performance Obligations (RPO) of $523 billion, a significant 433% year-over-year increase. The company's cloud revenue reached $8 billion, marking 33% year-over-year growth and an upward revision from the previous quarter's 27% growth rate, indicating a positive trajectory in its cloud business segment. Furthermore, Oracle anticipates continued growth in cloud revenue, with projections of 39% growth in constant currency for the upcoming quarter, suggesting sustained demand and a healthy outlook for the company's cloud applications and infrastructure offerings.
Bears say
The analysis highlights Oracle's disappointing performance in Q2, with cloud revenue falling short of guidance by 1 percentage point and management reaffirming targets without increasing revenue estimates. Moreover, the company's free cash flow, calculated as operating cash flow minus capital expenditures, fell below expectations due to a substantial $12 billion in capex spending, contributing to a decline in gross margins, which decreased to 67.8%. Finally, Oracle's operating cash flow of $2.1 billion was lower than the anticipated $2.4 billion, reflecting ongoing challenges that may negatively impact investor sentiment moving forward.
This aggregate rating is based on analysts' research of Oracle and is not a guaranteed prediction by Public.com or investment advice.
Oracle (ORCL) Analyst Forecast & Price Prediction
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