Ask Your Advisor: What to look out for in Oracle earnings?

Eyes turn to Oracle Corp.’s earnings, as investors weigh if the company can overcome hurdles in what may be viewed as among test cases for artificial intelligence (AI) space’s growth story.

For a company that used to be seen as a legacy database giant, Oracle pivoted to become a backbone of the AI boom, but that move is starting to be seen as expensive.

Here is a look of where the company stands heading into the March 11 (Philippine time) earnings call.

A massive data center build out dominates the narrative around Oracle.

It is building industrial-scale AI factories to address demand. Their backlog or Recovery Point Objective (RPO) sits at USD 523 billion, according to Oracle. But investors are beginning to ask: at what cost?

Oracle’s balance sheet looks heavy. To fund their USD-156 billion AI roadmap, the company has been tapping debt markets.

• Total debt has ballooned past USD 100 billion, various news sources reported.
  Last month, the company filed for USD 25 billion in bonds and a USD 20 billion equity distribution, according to a report by Bloomberg.
• For investors, this could be a downside of the growth story. The company is burning cash to build capacity. While third quarter 2025 revenue growth is expected to be impressive at USD 16.9 billion, the company’s capital expenditure requirements pressure margins.

There are also reports of a “right sizing,” where thousands of jobs are on the line in what may be seen by some as a shift toward a lean, AI-centric workforce. Oracle did not comment on this news.

The stock is currently hovering around the USD 150 to USD 156 range. It remains well off its 2025 highs, having lost more than half its value during the recent market correction.

At a 29x price-to-earnings ratio, it is not exactly viewed as cheap, especially with concerns over how quickly AI deals will turn to cash.

When the report drops after the opening bell, do not just look at the headline revenue. Watch these three things:

• Oracle Cloud Infrastructure growth: Did Oracle Cloud Infrastructure grow above 60%? Anything less will be seen as a failure.
• The “Stargate” update: Any clarity on their partnership with OpenAI/Microsoft and the status of those massive data centers.
• Guidance on capital expenditure: Are they going to keep spending USD 15 billion more than planned?
  Oracle has the contracts, but March 11 could show whether it can build the infrastructure without drowning in debt. It is a high-wire act, and market players watch with its breath held.

If you are interested and your risk profile fits investing in equities within the US information technology sector, you may reach out to your relationship or account manager to see how this fits in your investment profile

MATTHEW APOSTOL is an Investment Counselor with Metrobank’s Institutional Investors Coverage Division, where he specializes in creating bespoke financial solutions for high-net-worth individuals, leveraging his experience in investment sales and a strong understanding of financial markets. Matthew holds a Bachelor of Science in Business Economics and is currently pursuing a Master in Applied Economics degree at De La Salle University.