Particle.news
Download on the App Store

Oracle Faces Pivotal Earnings Test as AI Backlog Meets Balance-Sheet Worries

Wednesday’s results will show whether multiyear AI deals are translating into revenue quickly enough to reassure investors.

Overview

  • Shares have fallen about 37% from a September peak near $346 to roughly $217, shifting focus from growth narrative to leverage and cash generation.
  • Options pricing points to a roughly 10% swing after the report, with consensus expecting about $1.64–$1.65 in EPS on roughly $16.18–$16.19 billion in revenue.
  • Analysts largely stay constructive heading in: Citi cut its target to $375 but kept a Buy, Mizuho reiterates Outperform at $400, and RBC maintains Sector Perform at $310.
  • Investor scrutiny centers on heavy data-center capex, rising debt, customer concentration and free-cash-flow conversion, with recent FERC rulings cooling the nuclear data-center narrative.
  • Coverage cites a very large RPO/backlog measured in the hundreds of billions and reports of expanded AI partnerships, including widely reported but not publicly confirmed OpenAI commitments.