Oracle CEO Safra Catz rang the opening bell of the New York Stock Exchange on July 12, 2023.
Brendan McDermid | Reuters
Oracle Shares of the company soared more than 12% in intraday trading on Tuesday and were on track to hit a record close, a day after the company reported fiscal third-quarter earnings that topped analysts’ expectations.
The stock was trading above $127 at noon Tuesday, above its closing high of $126.71 set on September 11, 2023. The stock was also on track for its biggest gain since December 10, 2021, when Oracle shares closed up 15.6%.
Oracle reported adjusted earnings of $1.41 per share, beating analysts’ expectations of $1.38 per share, according to LSEG (formerly Refinitiv). Revenue was $13.28 billion, slightly below analysts’ expectations of $13.3 billion.
Sales at the company’s largest business, cloud services and licensed support, rose 12% to $9.96 billion, beating analysts’ expectations of $9.94 billion, according to StreetAccount.
Deutsche Bank raised its price target on Oracle stock to $150 from $135, noting that Chief Executive Safra Catz reiterated guidance for fiscal 2026 and strong cloud infrastructure results.
Analysts maintained a buy rating on Oracle stock, writing in a note on Tuesday that Oracle’s cloud infrastructure “is driving the stock market and we are more confident than ever in the demand outlook.”
Analysts at UBS raised their price target on Oracle stock to $150 from $130 and reiterated a buy rating on the stock on Tuesday, noting that they were “buoyed by revenue improvement, OCI growth, AI backlog volume, and large-cap sentiment.” Encouraging prospects.” The core database business may benefit from artificial intelligence-driven cloud migration improvements in 2024/2025. “
Analysts at Bernstein Research have a buy-equivalent rating on Oracle stock, raising their price target to $159 from $147. They cited management’s comments that supply continues to outpace demand, writing on Tuesday that the results “remove some of the growth concerns that have been building over the past two quarters.”
—CNBC’s Kif Leswing and Jordan Novet contributed to this report.
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