Options Point to About 10% Upside for Oracle Before Q4 Results

Options-market activity shows a bullish tilt for Oracle ahead of the company’s fiscal fourth-quarter results, due June 10 after the market close. Contracts expiring June 12 carry a put-to-call ratio of 0.46, and a cluster of open interest sits near a roughly $224 strike, implying about 10% upside from current trading levels.

Analysts expect adjusted earnings of $1.96 a share on $19.1 billion in revenue for the quarter, about 20% revenue growth and roughly 15% earnings growth year over year. The stock has risen about 50% from a recent low near $137. Technical indicators show shares trading above key moving averages and the relative strength index in the low 50s.

Oracle reports $553 billion in remaining performance obligations. Wall Street’s consensus rating is ‘strong buy’ with a mean price target near $254, which would represent about 25% upside from current levels. The company yields about 1%.

Balance-sheet items include more than $124 billion of long-term debt, a 32% year-over-year rise in interest expense, and trailing free cash flow of negative $24.7 billion. The current ratio is about 0.62. In February, Oracle outlined plans to raise up to $50 billion through bond and convertible preferred offerings to help fund a $50 billion capital expenditure program; capex was about $12.1 billion in the comparable nine-month period the prior year. The company has disclosed roughly $261 billion in additional data-center lease commitments not on the balance sheet.

Market participants are watching demand for AI infrastructure and the GPU supply chain as factors that could affect Oracle’s near-term results. A slowdown in enterprise AI spending, disruptions to chip availability, or a credit-rating action could shift the company’s financial priorities. Oracle recorded more than 20% organic growth in both revenue and earnings in one quarter, the first time in over 15 years.

Options pricing is one measure of short-term expectations and does not guarantee outcomes. A put-to-call ratio below 1 reflects heavier call buying for contracts that expire two days after the earnings release, and concentrated open interest near the $224 strike shows where traders are positioning for a possible move higher. Oracle is based in Austin; the company will report results after markets close on June 10.