Last week, you might have seen that Oracle Corporation (NYSE:ORCL) released its quarterly result to the market. The early response was not positive, with shares down 5.1% to US$179 in the past week. Oracle reported US$14b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.10 beat expectations, being 2.9% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

After the latest results, the 34 analysts covering Oracle are now predicting revenues of US$57.7b in 2025. If met, this would reflect an okay 5.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 9.9% to US$4.57. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$58.1b and earnings per share (EPS) of US$4.61 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 6.7% to US$196despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Oracle's earnings by assigning a price premium. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Oracle, with the most bullish analyst valuing it at US$220 and the most bearish at US$140 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Oracle's growth to accelerate, with the forecast 10% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 13% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Oracle is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Oracle's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Oracle going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Oracle that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.