Investors Eye Oracle Ahead of Earnings as Analysts Turn Bullish

Oracle will report quarterly results Thursday. Wall Street projects about $19.1 billion in revenue, up roughly 28% year over year, and earnings of $1.74 a share. Options traders are pricing in an implied move of about 11.2% after the report.

Oracle shares have declined nearly 20% year to date and more than 33% over the past 12 months as the company increases spending on Oracle Cloud Infrastructure, or OCI.

Management plans roughly $95 billion in capital spending for fiscal 2027, which runs from June 1 through May 31. Oracle raised about $43 billion in debt during fiscal 2026 and expects to raise roughly $40 billion in fiscal 2027 through a mix of debt and equity.

Analysts frame the stock around whether OCI can grow quickly enough to justify those investments and financing needs. Bank of America analyst Tal Liani maintained a Buy rating and a $240 price target, writing that the market has largely priced in balance-sheet risks but may not fully reflect upside if data-center milestones accelerate revenue. Liani projects infrastructure-as-a-service revenue to rise about 25% sequentially and 116% year over year.

Morgan Stanley analyst Sanjit Singh expects cloud revenue to increase about 63% from a year earlier, near the top of Oracle’s 58% to 65% guidance range for the quarter. Singh highlighted GPU-as-a-service offerings, which let customers rent graphics processing unit capacity for AI workloads, as a key growth area and pointed to recent comments from infrastructure providers that imply strong demand could support attractive pricing.

Oracle reported 93% constant-currency growth in its cloud infrastructure business in the most recent fiscal fourth quarter. Bernstein analyst Mark Moerdler wrote he expects that acceleration to continue into fiscal 2027 and described Oracle as in the early days of an investment cycle. Moerdler set a $325 price target.

Other analysts note execution and timing risks. Data-center construction can face delays, and the timetable for when those investments convert to recurring revenue and positive cash flow is uncertain. Piper Sandler’s Billy Fitzsimmons pointed to improving signs in Oracle’s software businesses, saying NetSuite bookings accelerated late in the fourth quarter and that Cerner, the electronic health-records unit, is returning to growth.

Singh also flagged deferred revenue in Oracle’s cloud applications business, which has grown faster than reported revenue for two consecutive quarters. He wrote that such a backlog could support a modest upward revision to fiscal-year revenue and earnings if the deferred revenue converts to recognized revenue.

Analysts say market reaction to the earnings may depend more on management commentary about the cost, timing and expected returns of the AI infrastructure program than on headline numbers. Investors will also watch whether customer prepayments or growth in deferred revenue provide near-term cash relief.