Oracle price target raised to $195 from $145 at RBC Capital

RBC Capital raised its price target on Oracle (NYSE:ORCL) stock to $195 from $145 on Thursday, while maintaining a Sector Perform rating on the shares. The software giant, currently valued at nearly $495 billion, has delivered strong returns with a 27% gain over the past year. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The firm’s decision follows Oracle’s quarterly earnings report, which showed total revenue exceeding both consensus estimates and the company’s own guidance. Cloud revenue specifically reached the top end of Oracle’s projected range. The company’s total revenue reached $55.8 billion in the last twelve months, with an impressive gross profit margin of 71%.

Oracle’s capital expenditure came in higher than expected at $9.1 billion during the quarter, which the company attributed to continued strong demand for capacity. The stock rose approximately 8% in after-hours trading following the announcement.

The enterprise software giant also raised its revenue guidance for fiscal year 2026 by $1 billion to $67 billion, signaling confidence in its growth trajectory despite ongoing challenges.

RBC Capital noted that while the quarter represented "a step in the right direction," the firm struggles to see a path to meaningful acceleration in the near term due to "the backdrop of continued capacity constraints."

In other recent news, Oracle Corporation reported impressive financial results for its fourth quarter of fiscal year 2025, surpassing earnings per share (EPS) expectations with an actual EPS of $1.70, compared to the forecasted $1.64. The company’s revenue also exceeded projections, reaching $15.9 billion, driven by an 11% year-over-year growth primarily fueled by cloud services. Oracle’s remaining performance obligations (RPO) increased by 41% to $138 billion, showcasing the company’s robust cloud demand. Piper Sandler raised Oracle’s price target from $130 to $190, reflecting strong RPO backlog growth, although the firm maintained a Neutral rating citing potential capital intensity risks. Mizuho (NYSE:MFG) reiterated an Outperform rating on Oracle, highlighting the company’s double-digit organic revenue growth milestone in the cloud sector. The company projects $67 billion in revenue for fiscal year 2026, representing a 16% year-over-year growth, with cloud infrastructure revenue expected to grow by over 70%. Oracle’s strategic focus on integrating artificial intelligence (AI) capabilities into its offerings and expanding its cloud infrastructure positions it as a strong competitor in the technology sector.

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