- Oracle climbed 3.1% to $144.75 in morning trading, recovering from multi-week lows hit after its September 10 fiscal Q1 FY2027 earnings release, helped by a stronger technology tape with the NASDAQ up 0.6% and the S&P 500 up 0.3%.
- Mizuho reiterated an Outperform rating and $320 price target, flagging a third consecutive quarter of beats on both revenue and EPS as cloud capacity comes online ahead of schedule.
- Oracle reported 30% year-over-year revenue growth and 121% growth in cloud infrastructure revenue, with Q1 2027 revenue of $19.3 billion outpacing guidance.
- Oracle delivered 850 MW of data center capacity and $6.5 billion of CPU/GPU infrastructure revenue, with AI infrastructure utilization at 97.9%; new AI contracts increasingly carry prepayments or customer hardware, reducing capital intensity.
- The shares remain far below the 52-week high of $329.50, with deeply negative free cash flow the central tension against rapid cloud revenue expansion.
Quotes
“Mizuho reiterated an Outperform rating and maintained a $320 price target following Oracle’s fiscal Q1 FY2027 results.”
“Chairman Larry Ellison canceled a plan to sell up to $7.5 billion of Oracle shares”
“I am reiterating my Strong Buy rating on Oracle Corporation”
“Q1 2027 revenue surged 30% y/y to $19.3 billion, outpacing guidance, with cloud infrastructure revenue accelerating to 121% growth.”