The company has become one of Wall Street\u2019s greatest bets on artificial intelligence infrastructure, but that has also elevated the stakes. Oracle is pouring money into growing its cloud capacity; investors are arguing about whether the demand for AI data centers can keep expanding, and the larger tech rally has begun to show cracks.<\/p>\n
That background makes Wall Street’s new assessment of Oracle stock all the more interesting.<\/p>\n
Instead of retreating ahead of the company\u2019s fiscal fourth-quarter earnings report, numerous analysts are doubling down on the Oracle story.<\/p>\n
The company is slated to report fiscal fourth-quarter earnings after the market closes on June 10, with a conference call at 4 p.m. CST.<\/p>\n
For investors, the report will be less about whether Oracle beats earnings projections. It will, however, put Wall Street’s increasingly optimistic opinion on the stock to the test.<\/p>\n
Oracle’s AI cloud story raises the stakes<\/h2>\n
Oracle is no longer being seen as a sluggish enterprise software provider.<\/p>\n
The narrative around the stock has changed to cloud infrastructure, artificial intelligence workloads and the company\u2019s capacity to convert huge AI demand into sustainable revenue growth.<\/p>\n
That trend was underscored even more after Oracle\u2019s fiscal third-quarter report, when the firm increased its fiscal 2027 revenue projection to $90 billion and reported remaining performance commitments of $553 billion, up 325% from a year ago.<\/p>\n
More AI:<\/strong><\/p>\n Remaining performance obligations are significant because they are contracted future revenue. That number has become one of the clearest signs for Oracle that customers are putting a lot of cash behind Oracle\u2019s cloud and AI infrastructure.<\/p>\n And that is why the impending earnings report is so important.<\/p>\n Oracle needs to show its backlog is more than impressive on paper. Investors want to see demand turn into faster cloud revenue, better margins, and a realistic route to management\u2019s long-term ambitions.<\/p>\n Oracle has a big AI opportunity, but the costs to develop the data centers needed to empower that AI are high. Oracle shares fell in December after the predictions below Wall Street expectations and higher capital spending stoked concerns about the expense of its AI infrastructure buildout, Reuters reported.<\/p>\n That\u2019s what makes the recent Wall Street ruling so remarkable.<\/p>\n Analysts are not oblivious to those hazards. They are thumbing through it.<\/p>\n Morris/Bloomberg via Getty Images<\/p>\n<\/figcaption><\/figure>\n Barclays recently reiterated its overweight rating on Oracle and kept a $240 price target ahead of earnings.<\/p>\n The firm expects the quarter to help reaffirm Oracle’s position as an AI beneficiary, even as broader AI sentiment has become more fragile. Barclays analyst Raimo Lenschow noted that market sentiment appeared to be pausing after excitement around the \u201cneocloud\u201d space.<\/p>\n That is the heart of the Wall Street decision.<\/p>\n Related: UBS resets Oracle stock price target<\/strong><\/p>\n While Oracle may face larger expectations, more spending requirements, and a more skeptical market, experts still believe its AI cloud story is good enough for further growth.<\/p>\n Evercore ISI echoed the sentiment. The firm boosted its Oracle price target to $245 from $220 and kept its outperform rating, TipRanks noted.<\/p>\n Evercore anticipates Oracle\u2019s fiscal fourth-quarter results to highlight its strategic fit and growth prospects, with cloud momentum and capital expenditure complexity among the factors investors will consider.<\/p>\n The firm also expects fiscal fourth-quarter revenue of about $19 billion, up 19.5% from a year earlier, and earnings per share of $1.95, roughly in line with Wall Street expectations.<\/p>\n That makes the verdict more than a routine analyst call.<\/p>\n Barclays basically says Oracle\u2019s AI story is still intact. The cloud trend still supports a greater valuation, Evercore is stating. Together, they suggest Wall Street is giving Oracle the benefit of the doubt ahead of one of its most crucial earnings announcements of the year.<\/p>\n The major question on June 10 is whether Oracle can provide enough proof to sustain that confidence.<\/p>\n Investors will be closely following Oracle Cloud Infrastructure’s expansion. Analysts expect Oracle\u2019s cloud business to continue a primary area of concentration, with OCI growth expectations of about 92% for the quarter.<\/p>\n That number is important because Oracle is trying to prove it can compete in a cloud industry still dominated by larger rivals.<\/p>\n The startup doesn\u2019t need to beat the top cloud platforms to win. It needs to show that AI workloads, database migration, and big corporate deals can maintain driving growth at a rate that warrants Wall Street\u2019s excitement.<\/p>\n There will also be a strong focus on capital spending.<\/p>\n Evercore allegedly kept its capital expenditure projections at $71 billion, above Wall Street\u2019s $61 billion, citing memory shortages and continued demand for AI infrastructure. The additional expenditure could help Oracle acquire more AI business, but it also raises issues about cash flow, debt demands, and future profitability.<\/p>\n That\u2019s the trade-off investors face now.<\/p>\n Oracle\u2019s AI buildout might generate one of the best growth runways in enterprise technology. Near-term profitability could also be strained if infrastructure expenses outpace revenue conversion.<\/p>\n The first earnings call with new CFO Hilary Maxson adds another element of suspense. Investors will be monitoring for any shift in tone regarding spending, revenue targets, and the company\u2019s road to fiscal 2027 guidance.<\/p>\n The earnings test is still to come, but at least the conclusion on Wall Street is clear for now.<\/p>\n Despite concerns over investment, capacity, and market mood, analysts tell investors Oracle\u2019s AI cloud promise remains enticing.<\/p>\n That doesn\u2019t mean the stock is without risk. It does, however, make the June 10 report a defining event in Oracle\u2019s AI story.<\/p>\n If Oracle can deliver on the growth trajectory analysts are looking for, the bullish verdict would seem reasonable. If management disappoints, Wall Street\u2019s confidence could suddenly seem a lot harder to defend.<\/p>\n Related: Oracle’s cloud pivot remains a high-risk bet<\/strong><\/p>\n #Oracle #stock #shocking #Wall #Street #verdict #earnings<\/p>\n","protected":false},"excerpt":{"rendered":" Oracle (ORCL) heads into its next earnings release on June 10 with plenty of reasons for investors to be concerned. The company has become one of Wall Street\u2019s greatest bets… <\/p>\n","protected":false},"author":1,"featured_media":6639,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[246],"tags":[457,7985,1845,91,379,8510,1152],"class_list":["post-6638","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-popular","tag-earnings","tag-oracle","tag-shocking","tag-stock","tag-street","tag-verdict","tag-wall"],"_links":{"self":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/6638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6638"}],"version-history":[{"count":0,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/6638\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/media\/6639"}],"wp:attachment":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
![](\"https:\/\/www.thestreet.com\/.image\/NDA6MDAwMDAwMDAzMDczNTgy\/oracle.jpg?profile=rss\")
Wall Street delivers its Oracle stock verdict<\/h2>\n
Oracle earnings could decide whether analysts are right<\/h2>\n
Key Oracle earnings questions investors are watching<\/h3>\n
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