Oracle (ORCL) Earnings Might Be Marred By Weakness In Tech and AI Stocks

Market is expecting adjusted earnings per share of $1.33 for the quarter ending in August, marking a 12% increase. Revenue growth is expected to accelerate, rising 6% to $13.2 billion.

Oracle Cloud Infrastructure (OCI) offers faster training speeds for large models and lower costs compared to other clouds. The company is constructing data centers at a record pace and recently signed an infrastructure contract with Nvidia.

I believe what investors would be looking out is Oracle's previous forecast for fiscal year 2026 indicates that top-line growth will rise to double digits.

Oracle continues to enhance its Analytics Cloud by integrating OCI AI Services, such as OCI Vision for face detection in images and OCI Document Understanding to extract information from documents. In addition, the Analytics Assistant revolutionizes data storytelling, enabling users across skill levels to construct and modify insights-driven narratives.

Oracle Analytics Cloud enables a range of AI outputs to be generated using third-party cloud services, such as an AI avatar capability which can then present data stories in an engaging, newscast-style format, to further foster natural information consumption.

While these features are good for enterprises but how Oracle would be promoting these with dynamics changes to the AI services offered by its competitors, so what would be interested would be whether Oracle have improved its leadership in offering the cloud for AI as well as AI services.

Based on 27 Wall Street analysts offering 12 month price targets for Oracle in the last 3 months. The average price target is $150.43 with a high forecast of $175.00 and a low forecast of $105.00. The average price target represents a 6.08% change from the last price of $141.81.

I would think there might not be too much movement on the stock price post earnings as tech stocks have suffered a large decline last week so will market still be interested in the information technology stocks regardless of their earnings?

Oracle impressive year-to-date returns so far can help to gather investors confidence back, but we need to look at the overall sentiment of the market, where we saw a large decline in the NASDAQ last week.

Will we see a recovery from the tech stocks and help NASDAQ to recover this week? Maybe we could see some recovery from NASDAQ if Oracle earnings surprise.

If we look at the multi timeframe for Oracle. there is already a pattern that Oracle is already on the higher tier, and we need to see a strong trend signal in order to see a higher stock price target post earnings.

And also OpenAI, which is facing some financial crunch but with its new funding round, can OpenAI increase the spending on Oracle Cloud, this might be indicators we should look out for.

I reckon Oracle might face some challenges to its stock price given last week tech and AI stocks weakness. There might be concerns of demand from these AI names as they are consumers of Oracle services.

Will we see demand reduction hence the outlook for Oracle might not be so optimistic?

Appreciate if you could share your thoughts in the comment section whether you think Oracle earnings could surprise with a more positive outlook despite weakness in tech and AI stocks?

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.