G-255 Earnings Summary with Trading Indicators for December 11, 2025
Key Takeaway - BBB TMT is now the highest rated long equity sector by virtue of "disappointing earnings" results but solid financial metrics and increasing returns to shareholders.
Oracle Earnings and Jeffrey Vinik (again)
A few weeks ago, I wrote about a Junior Analyst meeting in Fidelity's headquarters in 1992 where Jeff Vinik — long before it became fashionable — proclaimed "stock price movement is determined by whether the company beats analyst earnings expectations." He was correct 32 years ago and he is correct now. However, it's not all bad for Oracle (Baa2/BBB short credit/long equity). Yes, last night's earnings result trailed analysts' expectations and the stock traded down -5% in the aftermarket. But overall Oracle revenue and earnings growth is accelerating.
Top G-255 Equity Sector long Indicator? BBB+ TMT
We like to call it the communications / "low-tech" sector. It's the 8 largest non-single-A rated TMT issuers in the G-255 index. All 8 of the equities are seen as long trade indicators. 6 of the 8 stocks trade below their systematic model attractive long trade levels.
Oracle Q3 FY2026 Guidance
• Total Revenue: Expected to grow 19%–21% year-over-year.
• Cloud Revenue: Projected to rise 40%–44% YoY, showing continued strength in IaaS and SaaS.
Remaining Performance Obligations (RPO)
• Ended the quarter at $523.3 billion, up 433% YoY.
• Increased by $68 billion since the end of August, reflecting massive new long-term contracts.
Longer-Term Outlook
• Oracle now expects $4 billion of additional revenue in FY27, driven largely by AI-related infrastructure demand and hyperscale cloud deals.
Oracle is signaling accelerated growth in the near term (Q3) and structural revenue expansion in the longer term (FY27). The RPO figure is extraordinary — it essentially represents a backlog of committed business that should flow into revenue over time. The market's concern is whether Oracle can convert that backlog into recognized revenue fast enough, but the guidance suggests management is confident about execution.
Top G-255 Equity Sector long Indicator? BBB+ TMT
We like to call it the communications / "low-tech" sector. It's the 8 largest non-single-A rated TMT issuers in the G-255 index. All 8 of the equities are seen as long trade indicators. 6 of the 8 stocks trade below their systematic model attractive long trade levels.
G – 255 BBB+ TMT Sector Operating Data 3Q 2025
G – 255 BBB+ TMT Sector Balance Sheet
And while shareholder returns have grown +23.5% YoY, the BBB+ TMT balance sheet did not add net debt in the most recent reported quarter.
Which implies? More increases in capital returns to shareholders in this sector.
Disclaimer - This report is not intended as, and does not constitute an offer, or a solicitation to buy or sell any securities or financial instruments. All data, levels, opinions, and representations herein are provided for informational purposes only and should not be relied upon for making investment decisions. Past performance is not indicative of future results. The authors of this report assume no liability for losses or damages arising from the use of this information. Investors should consult with a qualified financial advisor before making any investment decisions. The information in this report is based on sources believed to be reliable, but no guarantee is made as to its accuracy, completeness, or timeliness.