Oracle Q2 FY25 Earnings: Analysts Predict Growth in Profits & Sales

Oracle (NYSE:ORCL) will release its Q2 FY25 earnings today, after markets close. Wall Street forecasts earnings of $1.48 per share, a 10.4% increase from last year. Revenue is also expected to climb 9% year-over-year, hitting $14.12 billion for the quarter.

The stock has soared about 81% this year, thanks to strong cloud growth and rising profitability. Oracle has a solid track record of beating earnings. It has outperformed Wall Street’s estimates in seven of the last nine quarters.

Analyst Sentiment Ahead of Q2 Results

Ahead of the results, Bernstein analyst Mark Moerdler maintained a Buy rating on Oracle with a price target of $202. Moerdler believes Oracle’s Generation 2 Cloud Infrastructure (OCI) gives it a competitive edge. He expects revenue and profit margins to keep improving.

Overall, Wall Street analysts have a Moderate Buy consensus on Oracle. Over the past three months, 19 analysts rated it a Buy, while 13 gave it a Hold. The average price target of $178.04 implies a 5.39% potential downside from current levels.

Options traders anticipate a sharp move in Oracle’s stock price after the earnings release. The expected move is calculated using the at-the-money straddle for the nearest options contract. This approach gives insight into the size of the swing the market expects.

With earnings growth, rising revenues, and strong cloud demand, all eyes are on Oracle’s December 9 report. Its ability to surpass expectations again could fuel more gains. However, with the stock already up 81% this year, some analysts see limited upside in the short term.