Shares of Oracle (ORCL) fell in after-hours trading after the tech firm reported earnings for its second quarter of Fiscal Year 2026. Earnings per share came in at $2.26, which beat analysts’ consensus estimate of $1.64 per share. Furthermore, sales increased by 14% year-over-year, with revenue hitting $16.1 billion. However, this missed analysts’ expectations of $16.2 billion.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
The revenue increase was mainly driven by the company’s Cloud Revenue segment, which increased by 34% to $8 billion and continues the firm’s longer-term trend of steadily growing its overall sales, as pictured below.
However, one of the standout metrics was the 438% increase in Total Remaining Performance Obligations (RPO), which soared to $523 billion. This growth included major new commitments from clients like Meta (META) and Nvidia (NVDA). Additionally, short-term deferred revenues reached $9.9 billion, and operating cash flow over the last twelve months was $22.3 billion, which marked a 10% gain.
Is Oracle a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ORCL stock based on 23 Buys, 11 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average ORCL price target of $346.11 per share implies 55% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
