Oracle (ORCL, Financial), in collaboration with seQure, an associated entity within Entanglement, has expanded the reach of Ground-Truth, a cybersecurity solution, to Oracle Cloud Infrastructure. Ground-Truth specializes in automating the detection of cybersecurity threats and vulnerabilities, potentially cutting down event alerts by 90%. Initially accessible only as an on-premises solution, this service is now available through Oracle’s diverse cloud offering, encompassing public, governmental, sovereign, and dedicated regions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 31 analysts, the average target price for Oracle Corp (ORCL, Financial) is $181.29 with a high estimate of $246.00 and a low estimate of $130.00. The average target implies an upside of 15.31% from the current price of $157.22. More detailed estimate data can be found on the Oracle Corp (ORCL) Forecast page.
Based on the consensus recommendation from 42 brokerage firms, Oracle Corp's (ORCL, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Oracle Corp (ORCL, Financial) in one year is $140.24, suggesting a downside of 10.8% from the current price of $157.22. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Oracle Corp (ORCL) Summary page.
ORCL Key Business Developments
Release Date: March 10, 2025
- Backlog: Increased by $48 billion, reaching $130 billion, up 63% year-over-year.
- Cloud Revenue: Total cloud revenue at SaaS and IaaS was $6.2 billion, up 25%.
- SaaS Revenue: $3.6 billion, up 10%.
- IaaS Revenue: $2.7 billion, up 51%.
- Total Cloud Services and License Support Revenue: $11 billion, up 12%.
- Infrastructure Subscription Revenues: $6.2 billion, up 18%.
- Oracle Cloud Infrastructure Revenue: Up 51% in Q3.
- Cloud Database Services Revenue: Up 28%, with annualized revenue of $2.3 billion.
- Autonomous Database Consumption Revenue: Up 42%.
- Total Revenues: $14.1 billion, up 8% from last year.
- Operating Income: Grew 9%, with an operating margin of 44%.
- Non-GAAP EPS: $1.47, up 4% in USD, up 7% in constant currency.
- GAAP EPS: $1.02, up 20% in USD, up 25% in constant currency.
- Cash and Marketable Securities: $17.8 billion at quarter end.
- Operating Cash Flow: $5.9 billion for Q3.
- CapEx: Expected to be around $16 billion for fiscal year 2025.
- Dividend: Increased by 25% to $0.50 per share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Oracle Corp (ORCL, Financial) reported its strongest booking quarter ever, adding $48 billion to its backlog, with a 63% year-over-year growth in RPO.
- The company achieved a milestone with its 101st cloud region coming online, indicating a strategic advantage in cloud infrastructure.
- Oracle Cloud Infrastructure (OCI) revenue grew by 51% in Q3, driven by record-level AI demand, outperforming hyperscaler competitors.
- Oracle's strategic back-office SaaS applications now have an annualized revenue of $8.6 billion, reflecting an 8% growth.
- The company increased its quarterly dividend by 25%, demonstrating a commitment to returning value to shareholders.
Negative Points
- Oracle Corp (ORCL) faced component delays that slowed cloud capacity expansion, although these are expected to ease in Q1 FY26.
- Software license revenues declined by 8% to $1.1 billion, indicating a potential challenge in this segment.
- The non-GAAP tax rate for the quarter was higher than expected, impacting EPS by $0.02.
- Currency headwinds negatively affected EPS by $0.04, highlighting exposure to foreign exchange fluctuations.
- The company's Q4 EPS guidance is negatively impacted by $0.03 due to losses recognized from an investment in another company.
