Oracle Corporation (NYSE:ORCL), the battered technology giant, will be in the spotlight as it publishes its financial results on September 10. These results come as the stock shows some bottoming signs following its significant drop from $341 in September 2025 to $114 in July.
Oracle Earnings to Shed Color on Growth and Debt
Larry Ellison’s company will release its earning, providing insights about its revenue and backlog growth, its free cash flow, and its debt. Its last results in June showed that its revenue rose by 21% in the fourth fiscal quarter to $19.2 billion, while the closely-watched remaining performance obligations (RPO) jumped by $85 billion to $638 billion.
Analysts are optimistic that its revenue and RPO growth surged in the first fiscal quarter, with the revenue expected to jump by 28% to $19.13 billion. Its guidance for the second quarter is expected to show a 31% growth to $21.17 billion.
There are no signs that its revenue growth decelerated in the quarter as the AI boom continued to accelerate. All large players in the AI infrastructure services released strong numbers and forward guidance. Its EPS is expected to jump from $1.47 in the same quarter last year to $1.74.
The main reason why Oracle’s shares have struggled this year is that the company is spending aggressively as it seeks to become a large player in the AI space. It raised $43 billion indebt financing and $5 billion in equity last year, and the management plans to raise another $40 billion. As such, investors worry that its business will be at great risk if the AI growth turns out to become a bubble as Ray Dalio and Michael Burry have warned.
On the positive side, Oracle stock has become undervalued, with its forward P/E ratio falling to 19.6, lower than other large technology companies.
Oracle Stock is Showing Bottoming Signs
The daily chart shows that the ORCL stock is bottoming. It has already jumped above the key resistance level of $133.95, its lowest level in February, March, and April this year.
At the same time, it has slowly formed a bullish divergence pattern as key oscillators have continued rising. The Relative Strength Index (RSI) has jumped to 60, while the two lines of the MACD have crossed the zero line.
These technicals point to more gains, potentially to $177, which aligns with where most of the volume of the call options are. It has a put/call ratio of 0.48, suggesting that there are more calls than puts.
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