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BNP Paribas (OTC:BNPQY) Exane raised its price target on Oracle (NYSE:ORCL) to $226.00 from $190.00 on Thursday, while maintaining an Outperform rating on the stock following Oracle’s strong fiscal fourth-quarter results. According to InvestingPro data, Oracle’s stock is trading near its 52-week high of $198.31, with analysts’ targets ranging from $135 to $246. The current valuation suggests the stock is trading above its Fair Value.
The technology giant reported better-than-expected revenue and earnings per share in its fourth quarter, with total revenue reaching $55.78 billion and maintaining a healthy gross profit margin of 71.12%. This performance positions the company for accelerating growth across its three key business segments in fiscal year 2026: strategic back-office SaaS, cloud database, and Oracle Cloud Infrastructure (OCI).
Oracle has provided guidance for 16% constant currency revenue growth in fiscal year 2026, up from its previous forecast of 15%, supported by projected OCI growth exceeding 70% and remaining performance obligation (RPO) growth of over 100%, which the research firm notes implies an RPO balance approaching that of Microsoft (NASDAQ:MSFT). InvestingPro analysis reveals 14 additional key insights about Oracle’s growth trajectory and financial health, available exclusively to subscribers.
BNP Paribas Exane believes Oracle Cloud Infrastructure could reach $20-25 billion in annualized revenue by the end of fiscal year 2026, compared to $12 billion in the fourth quarter, with artificial intelligence infrastructure potentially comprising approximately 40% of total Infrastructure as a Service revenue.
The firm also highlighted Oracle’s participation in the Stargate project as further validation of the company’s emergence as an AI cloud leader, noting that while Stargate is not yet an official legal entity, Oracle’s guidance likely includes eventual contribution from the project with potential for additional upside.
In other recent news, Oracle reported $15.9 billion in total revenue for its fiscal fourth quarter of 2025, representing an 11% year-over-year increase in constant currency. The company also raised its fiscal year 2026 revenue guidance to more than $67 billion, indicating approximately 16% growth. Oracle’s Cloud Infrastructure (OCI) showed substantial growth, with a 62% year-over-year increase, and the company expects OCI growth to exceed 70% in fiscal year 2026. Analysts have responded positively, with UBS raising its price target for Oracle to $225, citing significant backlog growth projected to reach over $275 billion by fiscal year 2026.
Cantor Fitzgerald also raised its price target to $216, highlighting strong guidance for Infrastructure as a Service (IaaS) revenue growth exceeding 70% in fiscal 2026. DA Davidson increased its price target to $170, noting accelerated growth in Oracle Cloud Infrastructure, driven by demand for AI compute. Stifel raised its price target to $180, pointing out that Oracle’s revenue and earnings per share surpassed guidance expectations. Meanwhile, Morgan Stanley (NYSE:MS) maintained its Equalweight rating and $175 price target, noting mixed signals in fourth-quarter results but highlighting potential for significant earnings per share growth by fiscal 2029.
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