Oracle's AI Earnings Improve but Cash Flow Test Remains

EarningsAnalyst Impact 4
โดย Insider Monkey·US·Read original
Summary · why it matters

Oracle's improving AI earnings outlook is tempered by persistent free cash flow pressure, as Morgan Stanley raised its price target on the company to $210 from $207 while maintaining an Equal Weight rating. In its fiscal fourth quarter ended May 31, Oracle reported revenue up 21% year over year, with total cloud revenue jumping 47% to $9.9 billion and Oracle Cloud Infrastructure revenue surging 93% to $5.8 billion. Net income rose to $4.22 billion, or $1.45 per share, from $3.43 billion, or $1.19 per share, a year earlier. However, capital expenditures are set to rise from $21 billion in fiscal 2025 to $55.7 billion in fiscal 2026, and free cash flow fell to negative $23.7 billion despite $32 billion in operating cash flow. For fiscal 2027, Oracle expects capital expenditures of up to $95 billion, with customer repayments covering up to $25 billion of that. Hedge fund ownership increased to 119 funds from 115, with Fisher Asset Management holding roughly 13.3 million shares after a 39% increase.

Impact on stocks 4

Cloud & Digital Infrastructure▲ · 2 stocks
Oracle Corporation
ORCL
▲ PositiveCapitalrelevance

Strong AI-driven cloud revenue growth and raised price target, though capex and negative FCF temper outlook.

Financials▲ · 1 stocks
Artificial Intelligence▲ · 1 stocks

Theme Impact 9

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