Changes in US stocks | The market is optimistic about Q1 earnings, Oracle (ORCL.US) rose more than 3% at the beginning of the session

The Zhitong Finance App learned that on Tuesday, Oracle (ORCL.US) rose more than 3% at the beginning of the session, a record high since the end of June, and is now reported at $163.31. According to the news, Oracle is about to release its financial report for the first quarter of the 2027 fiscal year this week, putting an end to what can be called the most turbulent 12 months in the company's 49-year history. According to compiled data, analysts currently generally expect Oracle's adjusted earnings per share for the first quarter to be 1.73 US dollars, and revenue is expected to be 19.1 billion US dollars, up 28% year on year. This growth rate is far higher than the company's level of about 11% in the same period last year.

However, the gap between revenue growth and profit growth is worth paying attention to. The market expects adjusted earnings per share to increase by about 18.5% this quarter, which is significantly lower than the 28% revenue growth rate. This means that Oracle is sacrificing short-term profit margins in exchange for rapid expansion of the cloud infrastructure business.