Oracle Corp ORCL shares tanked in early trading on Tuesday after the company reported downbeat fiscal second-quarter results.

The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.

BMO Capital Markets On Oracle

Analyst Keith Bachman reiterated a Market Perform rating while lifting the price target from $173 to $205.

Oracle's RPO (remaining performance obligation) grew by 50% year-on-year, a slowdown from 52% in the previous quarter, Bachman said in a note. He added, however, that cRPO growth accelerated to 21% year-on-year, from 18%.

"We consider these both solid results, particularly the CRPO acceleration," the analyst wrote. The company's RPO is likely to grow sequentially in both the third and fourth quarters, "though given the meaningfully harder compares, we think there is less certainty on y/y growth rates," he further stated.

Stifel On Oracle

Analyst Brad Reback maintained a Hold rating while raising the price target from $155 to $175.

Oracle’s second-quarter performance was "essentially inline," after adjusting for incremental currency headwinds, Reback said. The stock came under pressure due to the company's RPO declining by $2 billion sequentially, he added.

Management remains "upbeat around AI-driven bookings strength looking forward," the analyst stated. "We believe continued solid revenue growth is sustainable as AI infrastructure bookings strength converts into training revenue and hyperscaler database partnerships scale medium-term," he further wrote.

JMP Securities On Oracle

Analyst Patrick Walravens reiterated a Market Outperform rating and price target of $205.

Oracle reported mixed results for the fiscal second quarter, Walravens said. Although the most impressive was RPO of $97 billion, this is down sequentially in absolute dollars, he added.

Management's fiscal third-quarter guidance came in below expectations, with non-GAAP earnings of $1.47-$1.51 per share, versus consensus of $1.57, and reflecting revenue growth of 7%-9%, lower than consensus of 10%, the analyst stated.

Check out other analyst stock ratings.

RBC Capital Markets On Oracle

Analyst Rishi Jaluria reaffirmed a Sector Perform rating and price target of $165.

Oracle's revenue growth was 9% year-on-year in constant currency terms, Jaluria said. Although the third-quarter earnings guidance came in "a bit light of consensus," it was negatively impacted by an investment loss, he added.

Management guided to cloud revenues of $25 billion for the full year, which implies OCI (Oracle Cloud Infrastructure) adding record new ARR (annual recurring revenue) in the fourth quarter, the analyst stated. The setup for the back half of the year "looks aggressive," he further wrote.

KeyBanc Capital Markets On Oracle

Analyst Jackson Ader maintained an Overweight rating and price target of $200.

"The all-important OCI revenue accelerated to 55% growth and OCI consumption revenue ticked up to 58% from 56% last quarter," Ader said. He added, however, that this performance was merely in-line with expectations.

"What made this quarter different was that there wasn’t a concurrent build of remaining performance obligation (RPO) as there has been in prior periods," the analyst wrote. RPO declined sequentially for the first time in over a year and, while the company expects this to rebound in the third quarter, "the OCI business (and the share price) has rewritten the expectations for the company, he further stated.

Oppenheimer On Oracle

Analyst Brian Schwartz reiterated a Perform rating on the stock.

Oracle reported mixed results and its guidance fell below consensus, mainly due to "slowing RPO growth, negative FX, losses on strategic investments, and higher levels of capex investments to support future OCI growth," Schwartz wrote. Although Oracle’s second-quarter results were "less impressive than recent quarters," they support a strengthening of the OCI business, he added.

Management reaffirmed the annual guidance despite these adverse impacts, the analyst stated. This reflects a larger ramp in the fourth quarter than was projected after the previous quarterly results, he further said.

ORCL Price Action: Shares of Oracle had declined by 8.07% to $175.09 at the time of publication on Tuesday.

Read More:
• Oracle Analysts Boost Their Forecasts After Q2 Results

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