Scotiabank Has Pessimistic Outlook of Oracle FY2026 Earnings

Oracle Corporation (NYSE:ORCL) – Equities researchers at Scotiabank cut their FY2026 earnings per share (EPS) estimates for Oracle in a research note issued to investors on Wednesday, February 11th. Scotiabank analyst P. Colville now forecasts that the enterprise software provider will earn $6.02 per share for the year, down from their previous forecast of $6.06. Scotiabank has a “Sector Outperform” rating and a $220.00 price target on the stock. The consensus estimate for Oracle’s current full-year earnings is $5.00 per share.

Oracle (NYSE:ORCL) last issued its quarterly earnings results on Wednesday, December 10th. The enterprise software provider reported $2.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.64 by $0.62. Oracle had a net margin of 25.28% and a return on equity of 70.60%. The firm had revenue of $16.06 billion for the quarter, compared to the consensus estimate of $16.19 billion. During the same quarter in the previous year, the company earned $1.47 EPS. The company’s revenue for the quarter was up 14.2% on a year-over-year basis.

A number of other research analysts also recently issued reports on the company. Bank of America dropped their price objective on Oracle from $368.00 to $300.00 and set a “buy” rating on the stock in a research note on Thursday, December 11th. Sanford C. Bernstein set a $313.00 price objective on shares of Oracle in a research report on Monday. Weiss Ratings lowered shares of Oracle from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, January 23rd. Morgan Stanley decreased their price target on shares of Oracle from $320.00 to $213.00 and set an “equal weight” rating for the company in a research note on Friday, January 23rd. Finally, Evercore increased their price objective on shares of Oracle from $350.00 to $385.00 and gave the stock an “outperform” rating in a research report on Friday, October 17th. Three research analysts have rated the stock with a Strong Buy rating, twenty-six have given a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $292.43.

Oracle Price Performance

ORCL stock opened at $156.50 on Friday. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 3.28. The company’s fifty day simple moving average is $184.88 and its 200 day simple moving average is $231.79. Oracle has a 12-month low of $118.86 and a 12-month high of $345.72. The firm has a market cap of $449.63 billion, a price-to-earnings ratio of 29.42, a PEG ratio of 1.37 and a beta of 1.64.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the company. Norges Bank bought a new position in shares of Oracle during the 4th quarter worth approximately $4,336,031,000. Jennison Associates LLC lifted its holdings in Oracle by 2,062.4% during the third quarter. Jennison Associates LLC now owns 9,227,252 shares of the enterprise software provider’s stock worth $2,595,072,000 after acquiring an additional 8,800,546 shares during the period. Capital Research Global Investors boosted its position in Oracle by 29.3% in the fourth quarter. Capital Research Global Investors now owns 30,137,126 shares of the enterprise software provider’s stock worth $5,874,070,000 after purchasing an additional 6,826,299 shares during the last quarter. Vanguard Group Inc. grew its stake in Oracle by 3.5% in the 4th quarter. Vanguard Group Inc. now owns 174,802,084 shares of the enterprise software provider’s stock valued at $34,070,674,000 after purchasing an additional 5,841,584 shares during the period. Finally, American Century Companies Inc. increased its position in shares of Oracle by 333.7% during the 3rd quarter. American Century Companies Inc. now owns 5,238,006 shares of the enterprise software provider’s stock valued at $1,473,137,000 after purchasing an additional 4,030,382 shares during the last quarter. 42.44% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, insider Mark Hura sold 15,000 shares of the company’s stock in a transaction on Wednesday, December 24th. The stock was sold at an average price of $196.89, for a total transaction of $2,953,350.00. Following the completion of the sale, the insider owned 234,077 shares in the company, valued at approximately $46,087,420.53. This represents a 6.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Naomi O. Seligman sold 2,223 shares of the stock in a transaction on Tuesday, December 23rd. The shares were sold at an average price of $196.61, for a total value of $437,064.03. Following the completion of the sale, the director directly owned 25,596 shares of the company’s stock, valued at $5,032,429.56. The trade was a 7.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 72,223 shares of company stock worth $13,689,064 over the last 90 days. Company insiders own 40.90% of the company’s stock.

Oracle Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, January 23rd. Investors of record on Friday, January 9th were given a $0.50 dividend. The ex-dividend date of this dividend was Friday, January 9th. This represents a $2.00 annualized dividend and a yield of 1.3%. Oracle’s dividend payout ratio (DPR) is presently 37.59%.

Oracle News Summary

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Federal/corporate contract wins — Oracle secured a new U.S. Air Force OCI task order (~$88M) and was selected by CMS for cloud modernization, underpinning durable, mission‑critical cloud revenue and validating OCI in government programs. U.S. Department of the Air Force accelerates cloud modernization with Oracle
• Positive Sentiment: Product and health‑market momentum — Oracle rolled out AI agents for Fusion apps and expanded Oracle Health Clinical AI offerings (now in the UK), supporting SaaS adoption, higher RPO and potential upsell into large enterprise and healthcare customers. Oracle Unveils AI Agents for Fusion Apps
• Neutral Sentiment: Analyst activity is mixed — the stock is sensitive to analyst calls (recent upgrades drove rallies) even as some firms trim targets; this keeps volatility high around newsflow. DA Davidson Upgrades Oracle to Buy
• Neutral Sentiment: AI/OpenAI narrative remains a two‑edged sword — optimism about OpenAI exposure supports upside but remains sentiment‑driven and tied to Oracle’s ability to monetize AI investments at scale. Oracle gets boost from OpenAI optimism
• Negative Sentiment: Legal overhang — multiple law firms have filed or solicited plaintiffs in securities‑class actions covering June–Dec 2025 and the April 6 lead‑plaintiff deadline, creating litigation risk, potential damages and investor uncertainty. Investors in Oracle Should Contact Levi & Korsinsky
• Negative Sentiment: Insider sale — CEO disclosed a ~$1.55M sale of 10,000 shares; while often routine, such sales can be perceived negatively and add near‑term sentiment pressure. SEC Form 4 — Clayton M. Magouyrk sale
• Negative Sentiment: Analyst cuts / scrutiny of AI monetization — some shops trimmed estimates (e.g., Scotiabank lowered FY27 EPS) and groups like Melius flagged risks around AI monetization and leverage, which can fuel negative trading on mixed headlines. Melius downgrades Oracle to Hold

About Oracle

Oracle Corporation is a multinational technology company that develops and sells database software, cloud engineered systems, enterprise software applications and related services. The company is widely known for its flagship Oracle Database and a portfolio of enterprise-grade software products that support data management, application development, analytics and middleware. Over recent years Oracle has expanded its focus to include cloud infrastructure and cloud applications, positioning itself as a provider of both platform and software-as-a-service solutions for large organizations.

Oracle’s product and service offerings include Oracle Database and the Autonomous Database, Oracle Cloud Infrastructure (OCI), enterprise resource planning (ERP), human capital management (HCM) and supply chain management (SCM) cloud applications (often grouped under Oracle Fusion Cloud Applications), middleware such as WebLogic, and developer technologies including Java and MySQL.