Oracle Corporation (ORCL) is set to report its fiscal Q4 earnings on Wednesday, June 11. Notably, Barclays’ five-star-rated analyst Raimo Lenschow has reiterated his bullish outlook, calling this Oracle’s “comeback quarter.” ORCL stock has surged above 60% in 2024, marking its strongest run this century. However, shares have pulled back from recent highs amid lingering worries about AI infrastructure spending and the overall economic environment. With strong momentum in cloud infrastructure and AI-driven services, the tech giant may be poised to surprise the market.
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What to Expect from Oracle’s Q4 Earnings
Wall Street analysts expect Oracle to report an EPS (earnings per share) of $1.64 on revenue of $15.58 billion for Q4. This marks a modest uptick from the same period last year when the company reported earnings of $1.63 per share on $14.3 billion in revenue. The projected growth is largely driven by strong demand for Oracle’s cloud offerings, particularly its growing traction in generative AI workloads.
What Barclays Thinks About Oracle’s Next Earnings Report
Last week, Lenschow reiterated his Buy rating on ORCL stock, predicting an upside of 16% from current levels.
Lenschow noted that constraints on AI data center capacity appear to be easing, potentially enabling Oracle to address a substantial backlog of demand in this space. In addition, Oracle is a key partner in the Trump-backed Stargate AI infrastructure initiative, a $100 billion private venture aiming to build AI data centers alongside major players, including Microsoft (MSFT) -backed OpenAI and SoftBank (SFTBY). Oracle is also expected to play a role in the bidding process for TikTok’s U.S. operations.
In April, Lenschow highlighted that Oracle has deployed thousands of Nvidia’s (NVDA) Blackwell GPUs to support agentic AI and advanced reasoning models. Barclays views this development positively as it could help accelerate revenue momentum in Q4 and in the quarters ahead.
Is Oracle a Good Stock to Buy Now?
Overall, Wall Street has a Moderate Buy consensus rating on ORCL stock, based on 15 Buys and 14 Holds assigned in the last three months. The average Oracle stock price target of $177.04 implies about 2% upside potential from current levels.
Year-to-date, ORCL stock has grown by over 4%.
