"Oracle has been punished for its balance sheet rather than its growth. Capital expenditures reached $48.25 billion in the latest quarter, free cash flow swung to negative $24.7 billion, and non-current debt expanded to $124.7 billion from $85.3 billion. Management has telegraphed up to $50 billion in additional debt and equity financing for data centers. That overshadowed a strong Q3 FY2026 earnings report: EPS of $1.79, revenue of $17.19 billion, and IaaS revenue up 84% YoY."
"Analysts are looking past the CapEx anxiety. Remaining performance obligations exploded to $553 billion, up 325% YoY, representing multi-year contracted revenue from AI customers including Meta and NVIDIA. Management raised FY2027 revenue guidance to $90 billion and projects OCI revenue scaling to $144 billion by FY2030. Wedbush's Dan Ives raised his target to $275, arguing Wall Street is fixated on capex optics while ignoring contracted demand."
"The ratings split is decisively bullish: 7 Strong Buy, 28 Buy, 8 Hold, and 1 Sell. The 52-week range shows the rout, with a high of $343.01 against a low of $134.57. Seeking Alpha called a bottom with 36% potential upside to consensus, citing $30 billion in secured funding and $29 billion in customer-pre"
Oracle and Microsoft trade far below Wall Street consensus targets, reflecting market pressure on enterprise software balance sheets. Oracle’s latest quarter showed 20%+ growth with EPS of $1.79 and revenue of $17.19 billion, including IaaS revenue up 84% year over year. Capital expenditures reached $48.25 billion, free cash flow turned negative at $24.7 billion, and non-current debt rose to $124.7 billion. Management signaled additional debt and equity financing up to $50 billion for data centers. Analysts expect contracted AI demand to outweigh capex concerns, citing remaining performance obligations of $553 billion and raised FY2027 revenue guidance to $90 billion.
Read at 24/7 Wall St.
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