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Oracle Rides Strong On The AI Wave, Despite Q4 Revenue Miss: 8 Analysts’ Insights

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Oracle Corp (NYSE:ORCL) shares were climbing on Wednesday after the company reported its quarterly results.

The results came amid an exciting earnings season. Here are some key analyst takeaways.

Piper Sandler On Oracle

Analyst Brent Bracelin maintained an Overweight rating, while raising the price target from $140 to $150.

Oracle’s reported quarterly revenue miss of $242 million “takes a back seat to leading indicators like RPO metrics,” given its backlog strength, especially the new contract signings of $32 billion in just six months, Bracelin said in a note.  

RPO growth accelerated from the previous quarter’s 29% to 44% year-on-year to $98 billion, “driven by robust new AI contract signings,” the analyst stated, while adding that the company’s cRPO growth remained at 15% for the second consecutive quarter. “Non-GAAP operating margin improved q/q to 46.7% from 43.6%,” he further wrote.

Stifel On Oracle

Analyst Brad Reback reiterated a Hold rating while lifting the price target from $120 to $135.

Oracle’s results missed Street estimates “across the board,” Reback said. He added, however, that the stock rose in extended trading on RPO growth accelerated to 44% and management’s guidance of double-digit revenue growth for fiscal 2025.

With accelerating infrastructure demand, Oracle signed AI contracts of $12 billion, which is more than twice the prior $5 billion year to date, highlighted by OpenAI and xAI deals, and a partnership with Google-parent Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL).

Morgan Stanely On Oracle

Analyst Keith Weiss reaffirmed an Equal-Weight rating, while raising the price target from $115 to $125.

Oracle reported “another big quarter for growth in Remaining Performance Obligations (RPO),” adding additional contract value …

Full story available on Benzinga.com

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