Is Oracle Stock a Buy After Earnings Beat, Amazon Alliance?
Oracle stock is rallying Tuesday after the tech firm beat earnings expectations and announced a new AWS partnership. Here's what you need to know.


Oracle (ORCL) stock is soaring Tuesday after the enterprise IT firm beat top- and bottom-line expectations for its fiscal first quarter and announced an agreement with Amazon.com's (AMZN) cloud platform, Amazon Web Services (AWS).
In the three months ended August 31, Oracle's revenue increased 7% year-over-year to $13.3 billion, driven in part by a 10% surge in its cloud services & license support segment to $10.5 billion. Its earnings per share (EPS) were up 17% from the year-ago period to $1.39.
"As cloud services became Oracle's largest business, both our operating income and earnings per share growth accelerated," said Oracle CEO Safra Catz in a statement. The executive added that revenue performance obligations were up 53% from last year to a record $99 billion, and "that strong contract backlog will increase revenue growth throughout fiscal 2025."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Oracle's results came in well above what analysts expected. Specifically, Wall Street was anticipating revenue of $13.2 billion and earnings of $1.32 per share, according to Yahoo Finance.
However, the biggest news from Oracle was that it signed a multi-cloud strategic agreement with AWS, Catz said. The two companies will launch Oracle Database@AWS that aims to simplify database administration, billing and customer support, Oracle says.
The company also declared a quarterly dividend of 40 cents per share, payable on October 24 to shareholders of record at the close of business on October 10.
Is Oracle stock a buy, sell or hold?
Oracle shares have surged nearly 50% for the year to date. Unsurprisingly, most of Wall Street is bullish on the tech stock.
According to S&P Global Market Intelligence, the average analyst target price for ORCL stock is $161.28, representing implied upside of roughly 3% to current levels. Additionally, the consensus recommendation is Buy.
However, financial services firm CFRA Research is more on the sidelines, as evidenced by its Hold rating and $150 price target on the large-cap stock.
CFRA Research analyst Angelo Zino thinks Infrastructure as a Service (IaaS) "remains the key growth driver, more than doubling in two years." This growth should accelerate over the current fiscal year and be supported by cloud expansion plans, he adds.
However, Zino also believes that aggressive capital expenditures spending, which is expected to double in fiscal 2025, and a net debt of $74 billion will limit free cash flow growth.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Savings Goal Calculator
Tools Want to know how much you need to save each month to reach your financial goals? Our calculator helps you build a realistic savings plan.
-
Cash vs. Mortgage: How to Pay for Your Second Home
Should you buy your second home outright or finance it with a loan? Weigh the pros, cons and tax implications before making the leap.
-
5 Top Tech Disruptors to Watch
multibagger stocks Big change catalyzed by top tech disruptors often leads to big growth.
-
Gray Divorce Can Throw Your Retirement a Curveball: What to Know
If you're entering retirement and going through a divorce at the same time, you've got some work to do to shore up your long-term financial security.
-
I'm a Real Estate Investing Expert: Optional 721 UPREIT DSTs Can Be the Best of Both Worlds
Before investing in any 721 UPREIT exchange, look for one that offers a straightforward, investor-friendly exit.
-
Markets Are Quiet Ahead of Fed Day: Stock Market Today
Investors, traders and speculators appear to be on hold amid an unusually fraught Fed meeting.
-
5 Multibagger Stocks With Amazing Returns in 2025
multibagger stocks As the term suggests, multibagger stocks multiply your money – gains of 1,200%, for example. Here's where to look for that kind of performance this year.
-
Investing Freebies: Perks You Get for Owning These Stocks
While the biggest investing returns come over the long term, these companies offer instant gratification for investors with several freebies and perks.
-
How an Expired Passport Thwarted Blackmail (and What Other Important Documents You Should Keep)
An optometrist produced his expired passport to foil a blackmail attempt by the daughter of a former employee. After proving he was out of the country on the date of a forged diary entry, he took it a step further.
-
Optimize, Grow, Retain: The Power of Annual Client Reviews
Financial advisers can use annual reviews to help enhance client outcomes, strengthen relationships and build their practice.