Oracle posted its strongest cloud growth in years in fiscal Q1 2027, with cloud infrastructure revenue up 121% to $7.39 billion and adjusted EPS of $1.92 versus a $1.74 estimate. Management raised full-year non-GAAP EPS guidance to $8.10, and contracted revenue not yet recognized reached $664 billion. Shares sit near their 52-week low, down 34.93% year to date, as investors worry about debt funding the AI buildout. Free cash flow came in at -$5.40 billion on $28.5 billion of capital spending, and interest expense rose 55% to $1.4 billion. The 24/7 Wall St. model sets a $195.90 price target, implying 56.04% upside from $125.54, with a buy rating at 90% confidence, while its bear case is $167.93. Key points to watch include whether cloud growth lands within the guided 65% to 71% range in results due December 14.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Oracle Could Have a Massive AI Opportunity. Here’s Where the Stock Could Go
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