Oracle Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Shareholders of Oracle Corporation (NYSE:ORCL) will be pleased this week, given that the stock price is up 12% to US$157 following its latest first-quarter results. It looks like a credible result overall - although revenues of US$13b were in line with what the analysts predicted, Oracle surprised by delivering a statutory profit of US$1.03 per share, a notable 14% above expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Oracle

Taking into account the latest results, the consensus forecast from Oracle's 31 analysts is for revenues of US$58.0b in 2025. This reflects a satisfactory 7.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 18% to US$4.66. Before this earnings report, the analysts had been forecasting revenues of US$58.0b and earnings per share (EPS) of US$4.41 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 9.0% to US$162, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Oracle at US$185 per share, while the most bearish prices it at US$108. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Oracle's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Oracle is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Oracle following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Oracle analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Oracle has 2 warning signs we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.