Oracle set to report Q4 results as cloud demand and valuation gaps draw investor focus
With remaining performance obligations up 325 per cent, analysts project earnings per share of US$10.82 by fiscal 2028, though the Motley Fool’s top stock list excludes the tech giant.
Oracle is scheduled to release its fiscal 2026 fourth-quarter results after the market closes on June 10, with investors closely monitoring the company’s ability to sustain its recent momentum. The stock has jumped 47 per cent since the beginning of April, following a strong fiscal third-quarter report that saw revenue and earnings exceed expectations and full-year guidance for fiscal 2027 raised.
Data released by the company indicates solid demand for its cloud computing infrastructure, with remaining performance obligations growing by 325 per cent year-on-year to reach $553 billion at the end of fiscal Q3. This metric, combined with a strategy allowing customers to bring their own hardware and accept advance payments, is expected to ease cash flow pressure and support the bottom line.
Valuation metrics present a distinct picture for the tech giant. Oracle currently trades at approximately 27 times forward earnings, a discount to the Nasdaq Composite’s average multiple of 40. Some market commentary suggests this valuation gap, alongside potential earnings acceleration, could propel the company toward a $1 trillion market capitalisation, joining peers such as Broadcom, which designs custom AI chips for hyperscalers and has seen its stock rise 388 per cent over the past three years.
Analysts anticipate that Oracle’s earnings growth will accelerate in the coming years. Consensus estimates suggest earnings per share could reach US$10.82 in fiscal 2028, up from an estimated US$7.42 in fiscal 2026. Based on these projections and an assumed forward price-to-earnings ratio of 35, some models indicate the stock price could reach $379 within two years, implying a potential 77 per cent jump from current levels.
Despite the bullish sentiment surrounding the stock’s trajectory, not all analysts are recommending an immediate entry. The Motley Fool’s Stock Advisor analyst team recently identified their 10 best stocks to buy now, and Oracle was not included in the list. The Motley Fool has disclosed positions in and recommends both Broadcom and Oracle, while noting that its analyst Harsh Chauhan has no position in any of the stocks mentioned.
