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Investing.com-- Jefferies raised its price target on Oracle Corporation (NYSE:ORCL), citing strong forward guidance and accelerating cloud momentum, particularly in infrastructure services.
The firm maintained a “Buy” rating, and increased PT to $220 from $200, projecting a 25% upside from current levels.
Jefferies analysts highlighted Oracle’s robust remaining performance obligations (RPO), which grew 41% year-over-year and are expected to more than double in fiscal 2026.
The brokerage noted that Oracle’s ability to hit this growth target without relying on its upcoming Stargate AI initiative reinforces the durability of demand across both AI and non-AI workloads.
Jefferies also flagged Oracle’s raised full-year 2026 revenue outlook to $67 billion, reflecting 16% growth, with a further 20% increase forecast for FY27.
The acceleration in cloud revenue is a key driver, with infrastructure-as-a-service (IaaS) growth projected to rise to over 70% in FY26 from 51% in FY25, and total cloud revenue expected to grow more than 40%, Jefferies noted.
While Jefferies noted Oracle’s fourth-quarter results were mixed, citing slightly weaker IaaS growth and lower-than-expected cash flow, analysts said strong backlog trends and rising capex reflect aggressive scaling to meet demand.
They see potential for Oracle’s valuation multiple to expand further as cloud momentum translates into revenue.