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Evercore ISI raised its price target on Oracle (NYSE:ORCL) to $215 from $180 on Thursday while maintaining an Outperform rating, citing the company’s strong financial performance and increased growth targets. The software giant, currently trading at $176.38 with a market capitalization of $494.6 billion, appears overvalued according to InvestingPro analysis, despite delivering a robust 27% return over the past year.
Oracle reported revenue of $15.9 billion, representing 11% growth and exceeding both Evercore’s estimate of $15.4 billion and the Street consensus of $15.6 billion. The company’s earnings per share reached $1.70, surpassing analyst expectations of $1.63 to $1.64. This performance builds on Oracle’s trailing twelve-month revenue of $55.8 billion and impressive gross profit margin of 71.1%. InvestingPro data reveals 12 additional key metrics and insights available for deeper analysis.
Management increased its fiscal year 2026 revenue target to $67 billion, implying 16% year-over-year growth in constant currency, up from the previous target of $66 billion. Oracle also guided for fiscal year 2027 growth exceeding 20% from this revised base, supported by projected Cloud growth of over 40%, Infrastructure growth above 70%, and RPO growth of more than 100% in fiscal year 2026.
Evercore highlighted Oracle’s differentiated Oracle Cloud Infrastructure (OCI) strategy, noting its smaller data center regions enable greater global scale with faster, less expensive buildouts. The firm pointed to 104% year-over-year growth in Cloud@Customer datacenters, with Oracle currently operating 29 live dedicated datacenters and plans to build 30 more in fiscal year 2026.
While acknowledging that OCI acceleration will impact operating margin percentages, Evercore believes operating income dollars can still grow in the mid-to-high single digits in fiscal year 2026 and accelerate in fiscal year 2027. The firm’s new $215 price target represents approximately 30 times calendar year 2026 earnings per share. With Oracle’s current P/E ratio at 40.4x and high EBITDA multiple of 25.6x, investors seeking detailed valuation analysis can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
In other recent news, Oracle reported robust fourth-quarter fiscal 2025 earnings, surpassing analyst expectations with non-GAAP earnings per share of $1.70, compared to the consensus estimate of $1.64. The company achieved a revenue of $15.90 billion, exceeding the projected $15.59 billion and marking an 11% year-over-year increase. Oracle’s Infrastructure as a Service (IaaS) business grew 52% year-over-year, while Software (ETR:SOWGn) as a Service (SaaS) growth reached 13%. Remaining performance obligations (RPO) saw a 41% year-over-year increase, totaling $138 billion. Jefferies raised its price target for Oracle to $220, while Citizens JMP increased its target to $240, both citing strong cloud business momentum. RBC Capital also raised its price target to $195, acknowledging Oracle’s higher-than-expected capital expenditure due to strong demand. Mizuho (NYSE:MFG) reiterated its Outperform rating, highlighting Oracle’s double-digit organic revenue growth milestone. Piper Sandler raised its price target to $190, noting Oracle’s strong RPO backlog but maintaining a Neutral rating due to potential capital intensity risks.
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