Trump announces trade deal with EU following months of negotiations
Citizens JMP raised its price target on Oracle (NYSE:ORCL) to $240.00 from $205.00 on Tuesday, while maintaining a Market Outperform rating following the company’s fourth-quarter fiscal 2025 earnings report. With a market capitalization of nearly $495 billion, Oracle stands as a prominent player in the software industry, according to InvestingPro data.
Oracle exceeded analyst expectations with non-GAAP earnings per share of $1.70, above the consensus estimate of $1.64, and reported an operating margin of 44.2% versus the expected 43.9%. The company posted revenue of $15.90 billion, surpassing the consensus projection of $15.59 billion and representing an 11% year-over-year increase, up from 6% growth in the previous quarter. InvestingPro analysis shows the company maintains strong profitability with a gross margin of 71.1% and has consistently paid dividends for 17 consecutive years.
The database giant’s Infrastructure as a Service (IaaS) business grew 52% year-over-year, accelerating from 49% in the prior quarter, while Software (ETR:SOWGn) as a Service (SaaS) growth reached 13%, up from 8% in the previous quarter. Remaining Performance Obligations (RPO) totaled $138 billion, increasing 41% year-over-year.
Oracle stock rose 8% in after-hours trading following the earnings announcement. The shares had already gained approximately 6% year-to-date prior to the results, outperforming both the S&P 500 and Russell 3000 indices, which have risen about 2% each during the same period.
Citizens JMP cited the better-than-expected quarterly results as the primary reason for raising its price target on Oracle, reflecting increased confidence in the company’s cloud business momentum and overall financial performance. The company maintains a "GOOD" Financial Health Score according to InvestingPro metrics, with particularly strong scores in profitability (3.86/5) and price momentum (3.88/5).
In other recent news, Oracle reported its fourth-quarter earnings for fiscal year 2025, surpassing expectations with an EPS of $1.70 compared to the forecast of $1.64. The company’s revenue also exceeded projections, reaching $15.9 billion against an expected $15.58 billion. Oracle’s cloud services drove an 11% year-over-year revenue growth, with cloud infrastructure revenue accelerating by 62%. Following these results, RBC Capital raised its price target for Oracle to $195, reflecting confidence in the company’s growth trajectory, although it maintained a Sector Perform rating. Piper Sandler also increased its price target to $190, citing Oracle’s strong remaining performance obligations, but kept a Neutral rating due to potential capital intensity risks. Mizuho (NYSE:MFG) reiterated an Outperform rating, highlighting Oracle’s milestone of double-digit organic revenue growth, driven by cloud infrastructure and SaaS offerings. Oracle’s raised guidance for fiscal year 2026 anticipates $67 billion in revenue, representing a 16% year-over-year growth, as the company continues to expand its cloud and AI capabilities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.