ORCL

Oracle’s Remaining Performance Obligations Strong

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Image Source: TradingView By Brian Nelson, CFA Oracle (ORCL) recently reported fiscal first quarter fiscal 2027 results that came in better than the consensus forecasts on both the top and bottom lines. The company posted record first quarter total revenue of $19.3 billion, up 30%, while non-GAAP earnings per share increased at a similar pace, to $1.92. Consensus was at $19.1 billion in revenue and $1.75 in adjusted earnings. Total cloud revenues were a record in the period, up 61% in constant currency, to $11.6 billion. First quarter cloud infra (IaaS) revenue advanced 120% in constant currency, while first quarter cloud apps (SaaS) revenue increased 10% in constant currency. Remaining performance obligations increased $209 billion year-over-year, to $664 billion. Oracle’s … Read more

Oracle Growing Fast, But Net Debt and Capital Spending Are Problematic

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Image Source: TradingView By Brian Nelson, CFA Oracle (ORCL) recently reported fourth quarter fiscal 2026 results where both revenue and non-GAAP earnings per share came in better than expectations. The company set a number of new records in the quarter: record total revenue of $19.2 billion, up 21% in USD and better than consensus of $19.09 billion; record total cloud revenue of $9.9 billion, up 47% in USD, record non-GAAP earnings per share of $2.11, up 24% in USD and better than the $1.97 consensus mark; and record remaining performance obligations of $638 billion, up $85 billion sequentially. Management included the following in the press release: The large increases in Oracle’s RPO and revenue are driven by the growing demand … Read more

Oracle Posts Best Quarterly Results in 15 Years

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Image Source: TradingView By Brian Nelson, CFA On March 10, Oracle (ORCL) reported better than expected third quarter fiscal 2026 results with revenue and non-GAAP earnings per share exceeding the consensus estimates. Third quarter total revenue of $17.2 billion was up 22% in USD and up 18% in constant currency and better than consensus of $16.9 billion in revenue. Non-GAAP earnings per share increased 21%, to $1.79, in the quarter, better than consensus of $1.70. “This third quarter was the first quarter in over 15 years where organic total revenue and non-GAAP earnings per share both grew at 20% or more in USD.” Third quarter cloud revenue (IaaS plus SaaS) was $8.9 billion, up 44% in USD and up 41% … Read more

Oracle Has Turned Into a Net Debt Heavy, Free Cash Flow Burning Enterprise

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Image Source: TradingView By Brian Nelson, CFA On December 10, Oracle (ORCL) reported second quarter fiscal 2026 results that were mixed, with revenue missing the consensus forecast, but non-GAAP earnings per share exceeding expectations. Total quarterly revenues were up 14% in USD, and up 13% in constant currency. Second quarter remaining performance obligations (RPO) were $523 billion, up 438% in USD. Cloud revenue (IaaS plus SaaS) was up 34% in USD and 33% in constant currency. Cloud Infrastructure (IaaS) revenue was up 68% in USD and 66% in constant currency, while Cloud Application (SaaS) revenue was up 11% in both USD and constant currency. Non-GAAP earnings per share was up 54%, to $2.26. Management had the following to say about the … Read more

Thinking Slow: 3 Research Blind Spots That Changed the Investment World

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Dear members: — Daniel Kahneman in his text Thinking, Fast and Slow (1) divided the human psyche into two systems. The first system is instinctive and emotional, often set on autopilot, while the second system is slower and more logical, requiring a calculating conscious. Many of the maxims the investment world takes for granted today suffer from conclusions that are made rapidly, almost without thinking, driven by our first system, creating what I call research blind spots. — In World War II, Allied bombing raids were suffering from very high casualty rates. It was estimated that for those pilots that were flying at the beginning of the war, only about 10% survived, a terrible loss rate. Bombing was crucial to the Allied … Read more

Shares of Dividend Growth Idea Oracle Surge!

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Image Source: TradingView By Brian Nelson, CFA On September 9, Oracle (ORCL) reported fiscal first quarter 2026 results that came in below expectations, but the firm’s remaining performance obligations surged 359% year-over-year in both USD and constant currency, to $455 billion. Total revenue in the quarter was up 12% in USD and 11% in constant currency. Cloud revenues (IaaS plus SaaS) were up 27% in constant currency, to $7.2 billion, in the quarter. Cloud Infrastructure (IaaS) revenue increased 54% in constant currency, while Cloud Application (SaaS) revenue increased 10% in constant currency. Sales of Fusion Cloud ERP (SaaS) were up 16% in constant currency in the quarter, while sales of NetSuite Cloud ERP (SaaS) were up 15% in constant currency. … Read more

Oracle Expects Accelerated Growth in Fiscal 2026

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Image: Oracle’s shares have broken out to new all-time highs. By Brian Nelson, CFA On June 11, Oracle (ORCL) reported better than expected fourth quarter fiscal 2025 results with revenue and non-GAAP earnings per share exceeding the consensus forecasts. Total revenue was up 11% in the quarter, while the company posted non-GAAP earnings per share of $1.70, up from $1.63 in last year’s quarter and better than the consensus forecast of $1.64. Non-GAAP operating income was $7.0 billion, up 5% in USD and up 4% in constant currency. Fourth quarter remaining performance obligations jumped 41%, to $138 billion. Operating cash flow was $20.8 billion during fiscal year 2025, up 12% in USD. Management had the following to say about the … Read more

3 Undervalued Stocks to Consider Buying Now

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Dear readers:   With the markets retracing most of their recent drawdown, we’re taking a victory lap as we didn’t panic, nor should have you. We highlighted our wait-and-see approach amidst the worst of the pullback, and we expect the Magnificent 7 (large cap growth and big cap tech) to continue to propel the markets higher, as they have done.   We’ve been busy rolling valuation models as we finetune our assumptions for a great number of companies under coverage. While doing so, we came across three undervalued stocks that are also included in the simulated newsletter portfolios. We think they’re prime for highlight.   The three stocks are UnitedHealth Group (UNH), Nvidia (NVDA) and Alphabet (GOOG). We spend a lot of time on discounted cash-flow valuation, … Read more

Magnificent 7 Earnings Reports Not Bad Thus Far

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By Brian Nelson, CFA   Shortly after Trump’s Liberation Day, where the President unveiled lofty tariffs on numerous countries, we released our wait-and-see outlook for the equity markets, which thus far has proven to be the right move, with the markets largely recovering from the depths reached in April. The S&P 500 (SPY), for example, is down just 3.3% year-to-date, excluding dividends.   A lot has happened since Liberation Day, including easing of tariffs to a 10% baseline for most, if not all, countries, with the key exception of China, where tariffs remain extremely elevated and prohibitive. Many countries are now reportedly negotiating trade agreements with the White House, and we expect China to be added to that list soon, even if … Read more

Trump Tariffs Higher than Expected; What We’re Doing

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By Brian Nelson, CFA The Trump tariff increases came in larger than what we were expecting, and it remains to be seen how they will flow through the global economy, as we monitor potential retaliatory tariffs from other countries. As it relates to the equity markets, we’re taking a wait and see approach at the moment as we monitor new policy changes related to trade, immigration, fiscal (tax), and regulations. In short, we’re not overreacting to the sell off as we won’t have a great handle on the tariff impact to companies for a few quarters when they report results post-tariff increases. That said, we’re expecting continued market volatility, with meaningful risk to the downside, before trade uncertainty alleviates in … Read more