Ellison Abandons $7.5B Share Sale as Analysts Boost Targets

Key Takeaways

• Founder Larry Ellison withdrew his plan to dispose of 50 million Oracle shares valued at approximately $7.5 billion without providing any rationale.
• ORCL shares have declined 22% in 2025 and are 54% below peak levels, currently hovering around $154.
• Barclays elevated its ORCL price target to $252 while maintaining an Overweight stance following exceptional Q1 performance.
• The enterprise software giant reported Q1 revenue of $19.3 billion, representing 30% year-over-year expansion, with cloud infrastructure sales surging 121%.
• Management increased annual revenue projections to a minimum of $90 billion, marking a 34% jump from the previous fiscal year.

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Oracle founder Larry Ellison has withdrawn his intention to sell 50 million company shares valued at roughly $7.5 billion, according to a corporate statement released over the weekend. The company provided no explanation for this reversal.

“No Oracle stock was sold under that plan, and he has no other plans to sell any of his Oracle stock,” Oracle said in a statement.

This decision arrives while ORCL shares hover near $154, reflecting a 22% year-to-date decline and sitting 54% beneath record highs.

Oracle Corporation, ORCL

Barclays Increases Price Outlook Following Exceptional Quarter

Barclays upgraded its Oracle price objective to $252 from $250 while reaffirming its Overweight designation. The investment bank highlighted Oracle’s impressive Q1 performance and what analysts view as enhanced funding conditions.

The database giant delivered total quarterly revenue of $19.3 billion for the period ending in August, representing 30% year-over-year growth. This marked the inaugural instance of sequential Q1 revenue expansion, which CFO Hilary Maxson characterized as a significant indicator.

Cloud infrastructure sales exploded 121% to reach $7.4 billion. Cloud applications revenue increased 10%, with Fusion and industry-specific applications demonstrating accelerated growth.

Non-GAAP operating income advanced 31% to $8.2 billion. Non-GAAP earnings per share reached $1.92, climbing 30% from the prior year.

A particularly noteworthy metric emerged. Oracle’s remaining performance obligations—an indicator of future contracted revenue—expanded by $26 billion throughout the quarter. A substantial portion originated from prepayments or customer-provided hardware, indicating Oracle doesn’t require additional capital to fulfill these commitments.

Financial Position Requires Attention

Oracle’s debt burden has expanded rapidly. Total borrowings reached $155.9 billion on a trailing twelve-month basis, up from $90.5 billion two years prior. Net debt currently stands at $118.9 billion.

Free cash flow registered negative $28.7 billion over the past twelve months, propelled by capital expenditures totaling $75.7 billion. The enterprise allocated $28 billion toward CapEx in the most recent quarter alone.

Annual CapEx is projected to finish between $90 billion and $95 billion. Operating cash flow achieved a record $46.9 billion over the trailing twelve months, with Maxson indicating that new data center initiatives generate robust free cash flow rapidly once operational.

During the earnings conference, Co-CEO Clay Magouyrk responded to analyst questions regarding data center postponements in New Mexico and Wisconsin. He confirmed neither location would impact FY2027 revenue or earnings projections.

GPU utilization maintained its level at 97.9% throughout the quarter. Infrastructure capacity available for renewal secured pricing 20% above previous agreements.

Oracle elevated its full-year revenue forecast to a minimum of $90 billion and increased non-GAAP EPS guidance to $8.10. Second-quarter revenue growth is anticipated between 30% and 34%, with cloud revenue expansion projected at 65% to 71%.

The technology company also unveiled plans for an Investor Day in October, where leadership intends to provide additional details on profitability margins and long-range guidance.

The post Oracle (ORCL) Stock: Ellison Abandons $7.5B Share Sale as Analysts Boost Targets appeared first on Blockonomi.

Source: https://blockonomi.com/oracle-orcl-stock-ellison-abandons-7-5b-share-sale-as-analysts-boost-targets/