Oracle raised its sales outlook as demand for artificial intelligence continues to outpace supply. Oracle now expects fiscal 2027 revenue to be $90 billion, ahead of the $86.61 billion analysts are projecting. It reaffirmed its 2026 guidance. The company expects revenue to grow between 18% to 20% in the current fourth quarter, with adjusted earnings per share of $1.92 to $1.96. Wall Street is estimating $1.93 a share in adjusted earnings. Shares climbed 8.7% in after-hours trading Tuesday. Revenue rose 18% to $17.19 billion. Analysts surveyed by FactSet forecast revenue of $16.92 billion. Cloud revenue rose 41% and cloud-infrastructure sales jumped 81%. Software sales fell 1% on a constant currency basis. Oracle posted a profit of $3.72 billion, or $1.27 a share, in the fiscal third quarter, compared with $2.94 billion, or $1.02 a share, a year earlier. Oracle said it raised $30 billion within days of its February announcement that it planned to raise up to $50 billion in debt and equity financing. Internally, Oracle is adopting AI coding tools, which are helping make its software-as-a-service business run more efficiently. It is using AI to build new SaaS products and embed agents into existing applications, co-Chief Executive Mike Sicilia said. The move is making it more efficient to build software with fewer people, and Oracle has shrunk its product development teams as a result. Oracle spent $153 million on restructuring costs in the quarter, which included severance expenses.

The Swiss stock market lagged behind its European counterparts on Tuesday. The dividend cut at Novartis and losses at Nestlé (-0.6%), another heavyweight, slowed down the Swiss stock market. The SMI gained 0.5 percent to 13,065 points. Stocks from energy-intensive sectors benefited from the stabilization of the oil market. Sika and Holcim climbed 1.7% and 1.9%, respectively. Partners Group rose 0.7% after reporting its figures. In trading, the financial group was credited with strong business figures, with a significant improvement in operating profit of 19%. The increased dividend was also well received. Meanwhile, investors had further business figures to digest: chocolate manufacturer Lindt & Sprüngli lowered its growth forecast for 2026 against the backdrop of geopolitical uncertainties when it presented its figures, causing its share price to fall by 8.5 percent. The financial results of Zurich Airport (-1.6%) were also not well received – traders were critical of the passenger outlook due to canceled flights to the Middle East. Financial results were also reported by Kuros Biosciences (+10.6%), Komax (+1.5%), Huber+Suhner (+4.8%), Galenica (+0.8%), and Sensirion (+17%).

Europe
European stock markets rebounded on Tuesday as oil prices slumped following comments by US President Donald Trump that the conflict in the Middle East could soon be over. The Stoxx Europe 600 index bounced 1.9% to 606.13 points. In Paris, the CAC 40 and SBF 120 gained 1.8%. In Frankfurt, the DAX 40 advanced 2.4%, while the FTSE 100 posted a 1.6% increase in London. VW shares climbed 2.6 percent. JP Morgan spoke of a strong fourth quarter, driven by the VW, Skoda, and Audi brands. Nevertheless, VW reported a 45 percent drop in operating profit to €3.46 billion for the fourth quarter, and a slump of over 50 percent to €8.9 billion for the year as a whole. Hugo Boss (+1.8%) ended 2025 with noticeable improvements in profitability thanks to a robust fourth quarter, exceeding expectations. Airbus shares were up 1.4 percent following the announcement of delivery figures. Evotec plummeted 10.7 percent after its 2025 figures. The biotechnology company's sales and operating profit were within the forecast range. Dermapharm jumped 8.5 percent to €41.40. The driver was a share buyback program by the manufacturer of branded drugs and health products for up to 4.3 million shares. In Paris, Renault shares added 0.4 percent on the back of the automotive manufacturer's presentation of a new corporate strategy.

United States
The New York Stock Exchange closed slightly lower on Tuesday after recovering the previous day, as uncertainty prevails over the chances of a quick resolution to the conflict in the Middle East. The Dow Jones index fell 0.1% to 47,706.51 points, and the S&P 500 lost 0.2% to 6,781.48 points. The tech-heavy Nasdaq Composite remained stable at 22,697.10 points. EXXON MOBIL (-1.7%), CHEVRON (-1.7%), CONOCOPHILLIPS (-1.4%), OCCIDENTAL PETROLEUM (-3%): Oil stocks slid as crude prices eased following statements by US President Donald Trump that the conflict in the Middle East could soon be over. AMERICAN AIRLINES (-2.8%), DELTA AIR LINES (-2.2%), UNITED AIRLINES (-2.8%): Airlines did not benefit from the decline in crude oil prices, as investors remained cautious about the impact of the conflict on travel activity. HEWLETT PACKARD ENTERPRISE (-3.3%): The IT group raised its earnings per share forecast for its entire fiscal year after reporting higher-than-expected earnings per share for the first quarter. BOEING (-3.2%): The Wall Street Journal reported on Tuesday that the aircraft manufacturer would delay deliveries of some 737 MAX aircraft, its best-selling model, after identifying a wiring problem on recently assembled aircraft. BIONTECH (-18% for the ADR): The pharmaceutical company's stock plummeted after the announcement that its co-founders, Ugur Sahin and Ozlem Tureci, would be leaving by the end of the year.

Asia
Positive signs continue to dominate the stock markets in East Asia on Wednesday. In Tokyo, the Topix climbed 1.5 percent. On the Seoul stock exchange, the Kospi gained 2.6 percent. There was little movement on the Chinese stock markets. The composite index in Shanghai was up 0.1 percent. In Hong Kong, share prices turned slightly negative, with the Hang Seng Index sinking 0.2 percent.

Bonds
Long-dated U.S. government debt yields edged higher on Tuesday as investors reasoned that the prospect of burgeoning inflation would reduce the Fed’s ability to cut interest rates later this year. The 10-year Treasury note yield increased by 2 basis points to 4.15%.

Analysis
Arbonia target price: UBS lowers to CHF 4.70 (5.20) – Neutral
SFS target price: Berenberg raises to CHF 130 (120) – Hold
Gurit rating: Octavian upgrades to Buy (Hold) – Target CHF 52 (13.50)

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