As a key member of the newly emerged “Ten Titans” group, database giant Oracle (NYSE: ORCL) is set to report its Q1 fiscal 2026 earnings on September 9. Following strong recent results from peers like Broadcom and Netflix, the market is closely watching whether Oracle can justify its premium valuation.
This year, exceptional returns from Broadcom, Oracle, and Netflix have paved the way for this new class of market leaders—the “Ten Titans.” The group consists of these three companies plus the “Magnificent Seven” (Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, and Tesla). Together, they account for 38% of the S&P 500 and are seen as a new benchmark for market leadership.
Oracle’s stock has surged more than 300% since early 2020, largely driven by the expansion of Oracle Cloud Infrastructure (OCI). Historically a database services company reliant on third-party cloud providers, Oracle has successfully unlocked a new revenue stream from enterprise clients with OCI. Despite high upfront costs, its competitive pricing and pure-play B2B model have differentiated it in a market dominated by Amazon AWS, Microsoft Azure, and Google Cloud.
Key metrics to watch in Oracle’s report include capital expenditures and cloud revenue (covering both infrastructure and applications). According to its Q4 fiscal 2025 report released in June, cloud revenue accounted for 42.1% of total revenue, illustrating how cloud is transforming Oracle’s business. Full-year cloud growth reached 24%. The company expects “dramatically higher” growth in fiscal 2026, with overall cloud revenue accelerating to 40%—led by a stunning 70% increase in cloud infrastructure (OCI).
If actual results fall short, markets may question its leveraged balance sheet.
Oracle faces rising net long-term debt and increasing capex relative to revenue. Although investors continue to support its aggressive expansion strategy for now, the company must eventually convert these investments into bottom-line results. Analyst consensus estimates reflect this optimism: they project fiscal 2026 EPS of $6.78 (up from $4.34 in fiscal 2025), followed by 20% growth to $8.14 in fiscal 2027.
Viewed as a high-risk, high-reward stock in the AI and software space, Oracle’s current share price of $223 appears reasonable only if the company delivers on its earnings targets over the coming years. Otherwise, concerns over debt and spending may emerge. The stock is suitable mainly for investors with higher risk tolerance and a long-term perspective.
