On November 18, Baird lowered its price target for Oracle Corporation (NYSE:ORCL) to $315 from $365, while keeping an Outperform rating on the shares, as reported by The Fly. The analyst noted that the firm had revisited its bullish thesis but highlighted concerns around Oracle’s AI initiatives and debt levels.
In its fiscal Q1 report, Oracle Corporation (NYSE:ORCL) posted revenue of $14. billion, up 12% year over year. The company also reported a dramatic 359% increase in its remaining performance obligations (RPO), which reached $455 billion. RPO represents the total value of contracts not yet fulfilled, and this large backlog indicates Oracle is well-positioned for accelerating revenue and earnings growth.
Oracle Corporation (NYSE:ORCL) has raised its fiscal 2029 revenue forecast to $185 billion, up from a previous estimate of $104 billion, and projects revenue of $225 billion in fiscal 2030. This implies an annual growth rate of 31% from fiscal 2025. The company also expects non-GAAP earnings to grow 28% per year, reaching $21 per share by fiscal 2030.
Despite the strong outlook, Oracle Corporation (NYSE:ORCL)’s stock has dropped more than 29% over the past month. Investor concerns focus on the company’s substantial $111 billion debt and plans to raise an additional $38 billion to expand its AI infrastructure. Dependence on OpenAI for revenue adds further caution, with potential funding and execution risks.
Oracle Corporation (NYSE:ORCL) provides enterprise software, cloud computing, and database management systems, helping businesses manage data, applications, and IT infrastructure.
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