Safra Catz, CEO of Oracle Corporation, rings the opening bell on the Recent York Stock Exchange, July 12, 2023.
Brendan Mcdermid | Reuters
Oracle stock spiked greater than 12% during intraday trading on Tuesday and is on pace for a record close, a day after the corporate reported fiscal third-quarter earnings that beat analysts’ expectations.
Shares were trading at greater than $127 midday on Tuesday, above a previous closing high of $126.71 set on Sept. 11, 2023. They’re also on pace for the largest gain since Dec. 10, 2021, when Oracle stock closed up 15.6%.
Oracle reported adjusted earnings per share of $1.41, exceeding the $1.38 per share that analysts were expecting, in accordance with LSEG, formerly often called Refinitiv. Revenue of $13.28 billion got here up barely in need of the $13.3 billion estimated by analysts.
The corporate’s cloud services and license support segment, its largest business, saw a 12% sales increase to $9.96 billion, eclipsing the $9.94 billion expected by analysts, in accordance with StreetAccount.
Deutsche Bank lifted its price goal on Oracle shares to $150 from $135, noting CEO Safra Catz reiterated fiscal 2026 guidance and strong cloud infrastructure results.
The analysts, maintaining a buy rating on Oracle stock, wrote in a Tuesday note that Oracle’s cloud infrastructure “is driving the equity narrative and for which we’re more confident than ever within the demand picture.”
UBS analysts hiked their price goal on shares of Oracle to $150 from $130 and reiterated a buy rating on the stock on Tuesday, noting they’re “encouraged by the top-line turnaround, OCI growth, AI backlog numbers and by the prospect that the massive core database business might profit in 2024/2025 from an AI-driven cloud migration lift.”
Analysts at Bernstein Research, who’ve the equivalent of a buy rating on Oracle stock, bumped up their price goal to $159 from $147. They cited management comments about supply continuing to outstrip demand and wrote on Tuesday that the outcomes “dispelled a number of the growth concerns that had crept up over the past two quarters.”
— CNBC’s Kif Leswing and Jordan Novet contributed to this report.