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Investing.com - William Blair has reiterated an Outperform rating on Oracle (NYSE:ORCL), highlighting the company’s strong position in the database market. The stock has demonstrated remarkable performance, delivering a 54.5% return over the past year and currently trading near its 52-week high of $228.22. According to InvestingPro, Oracle has shown consistent strength with a "GOOD" overall financial health score.
The investment firm noted that Oracle maintains a sticky install base and high mindshare with developers, which has contributed to its market strength. Oracle has enhanced its growth potential through improvements in ease of use via its Autonomous Database offering. This growth trajectory is reflected in the company’s robust 8.38% revenue growth over the last twelve months, though current market valuations appear elevated with a P/E ratio of 49.49x.
William Blair pointed to Oracle’s unique multicloud deployment options as a key advantage, with Oracle database now running inside Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Google (NASDAQ:GOOG) data centers. The company has also made critical AI-focused enhancements, including vector search and other AI capabilities introduced in Oracle 23ai and MySQL Heatwave.
While faster-growing alternatives like Postgres may continue to gain market share, William Blair sees potential for Oracle to improve its database growth from the 3% average annual growth over the last five years. This improvement could help Oracle achieve its stated goal of 20%+ top-line growth in fiscal 2027.
According to a Form 8-K filed Monday, Oracle reported that its multicloud database revenue continues to grow over 100%, while also emphasizing strong demand for its Oracle Cloud Infrastructure (OCI), including one new agreement expected to generate $30 billion in annual revenue starting in fiscal 2028. With 12 analysts recently revising earnings estimates upward and a consensus recommendation of 1.79 (where 1 is Strong Buy), Oracle’s growth story continues to attract attention. For deeper insights into Oracle’s valuation and growth metrics, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
In other recent news, Oracle Corp . has reported a robust start to fiscal year 2026, with its MultiCloud database revenue experiencing over 100% growth. The company announced several significant cloud services agreements, including one expected to generate more than $30 billion annually starting in fiscal year 2028. This major deal, the largest in Oracle’s history, has drawn attention from various analysts. TD Cowen raised its price target for Oracle to $250, citing the potential to significantly boost fiscal 2028 revenue growth estimates. Similarly, Barclays (LON:BARC) reiterated its Overweight rating with a $221 price target, emphasizing the importance of the new agreements in meeting Oracle’s long-term revenue goals. Citizens JMP also maintained a Market Outperform rating and a $240 price target, expressing confidence in Oracle’s growth trajectory. Additionally, Oracle is part of a consortium, including Blackstone (NYSE:BX) and Andreessen Horowitz, reportedly reviving talks to acquire TikTok’s U.S. operations. These developments highlight Oracle’s strategic moves to bolster its cloud services and expand its market presence.
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