Why Oracle Shares Are Making New All-Time Highs Today

Oracle Corp ORCL is trading higher Friday after the company announced better-than-expected fiscal second-quarter 2022 financial results, increased its share buyback and declared a quarterly dividend.

Oracle reported quarterly earnings of $1.21 per share, which beat the estimate of $1.11 per share. The company reported quarterly revenue of $10.36 billion, which beat the estimate of $10.21 billion.

Oracle increased its share repurchase program by $10 billion. The board of directors also declared a quarterly cash dividend of 32 cents per share.

"These strong results are being driven by the 22% growth of our infrastructure and applications cloud businesses which are approaching $11 billion in annualized revenue," said Safra Catz, CEO of Oracle.

"We now have 8,500 Fusion ERP customers with revenue growing 35%, 28,400 NetSuite ERP customers with revenue growing 29%, and our Gen2 infrastructure businesses are growing even faster—and accelerating," Catz added.

Analyst Assessment: Multiple analyst firms weighed in on the stock following Oracle's financial results:

• Piper Sandler analyst Clarke Jeffries maintained Oracle with a Neutral rating and raised the price target from $80 to $100.
• Deutsche Bank analyst Brad Zelnick upgraded Oracle from Hold to Buy and raised the price target from $110 to $120.
• Credit Suisse analyst Phil Winslow maintained Oracle with an Outperform rating and raised the price target from $110 to $115.
• Barclays analyst Raimo Lenschow maintained Oracle with an Equal-Weight rating and raised the price target from $87 to $91.

Related Link: Analysts Laud Oracle's Q2 Beat, $10B Share Buyback

Oracle provides database technology and enterprise resource planning software to enterprises around the world.

ORCL Price Action: Oracle has traded as low as $58.80 over a 52-week period. It's making new all-time highs Friday.

The stock was up 14.30% at $101.65 at time of publication.

Photo: courtesy of Oracle.