Oracle stock price target raised to $180 from $150 at Stifel

Stifel raised its price target on Oracle (NYSE:ORCL) to $180 from $150 on Monday, while maintaining a Hold rating on the stock following the company’s quarterly results. According to InvestingPro data, Oracle currently trades at a P/E ratio of 40.4x and shows strong momentum with a 27% return over the past year.

Oracle posted revenue and earnings per share that exceeded the high end of its constant currency guidance, with Oracle Cloud Infrastructure (OCI) growing 62% year-over-year and an acceleration in Software (ETR:SOWGn) as a Service (SaaS) growth, according to Stifel. The company’s strong performance is reflected in its $55.8 billion revenue over the last twelve months, with a robust gross profit margin of 71.1%. For deeper insights into Oracle’s financials and growth metrics, check out the comprehensive Pro Research Report available on InvestingPro.

The company raised its fiscal year 2026 revenue guidance to more than $67 billion, representing approximately 16% year-over-year growth in constant currency, up from its previous forecast of $66 billion. Management also projected Total (EPA:TTEF) Cloud and Cloud Infrastructure as a Service (IaaS) revenue growth to accelerate in fiscal 2026 to 40% and 70% year-over-year, respectively.

Oracle expects its remaining performance obligations (RPO) to grow more than 100% in fiscal 2026, with management indicating these projections include very little, if any, contribution from its Stargate initiative.

Stifel noted that while the growth acceleration is positive, it comes at a cost as operating income growth will likely lag revenue growth in coming quarters, and the company may need to raise capital to fund increased capital expenditure needs, potentially limiting multiple expansion.

In other recent news, Oracle’s fiscal fourth-quarter results and fiscal year 2026 outlook have drawn significant attention from analysts. The company reported a total cloud subscription growth of 27% in the fourth quarter, exceeding some expectations. Oracle’s fiscal 2026 guidance suggests cloud infrastructure revenue growth of over 70% and a total revenue target of $67 billion, representing a 16% increase. BofA Securities raised its price target for Oracle to $220, while JPMorgan increased its target to $185, citing strong AI growth prospects. Wolfe Research also adjusted its price target to $215, emphasizing Oracle’s robust fiscal 2026 guidance. Despite these positive projections, Oracle faces challenges with increased capital expenditures, expected to reach $25 billion in fiscal 2026, impacting free cash flow and operating margins. Morgan Stanley (NYSE:MS) maintained an Equalweight rating, noting Oracle’s ambitious growth targets for fiscal 2026, including a projected backlog of approximately $280 billion. Oppenheimer highlighted Oracle’s strong finish to FY25 but maintained a Perform rating due to valuation concerns.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.