Options traders price in big move for Oracle ahead of earnings
Traders are buying call options targeting a $175 price for Oracle Corp., reflecting expectations of a significant reaction to the company’s upcoming fiscal first-quarter earnings report.
Oracle Corp. is scheduled to release its fiscal first-quarter results after the market closes on Thursday. The stock closed at $162.52 on Tuesday, up 2.4%, and options activity shows a bullish tilt, with investors purchasing calls near the $175 strike, roughly an 8% premium to the closing price.
The interest comes as Oracle’s cloud infrastructure segment posted a 93% revenue jump to $5.8 billion in the prior quarter and the company ended fiscal 2026 with $638 billion in performance obligations, indicating a sizable backlog of contracted work. However, the rapid expansion has strained cash flow; operating cash flow reached $32 billion, while free cash flow turned negative $23.7 billion due to heavy spending on AI-focused data centers.
Analysts and investors will be watching whether the surge in AI-related cloud revenue can offset the substantial capital outlays, a factor that could drive the stock sharply higher or lower after the earnings announcement.