Sell-side on Oracle (ORCL) post-earnings: Sees a deluge of PT raises after a stellar report whereby Remaining Performance Obligations (RPO) "steals the show"

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  Cantor Fitzgerald raises PT to USD 400 (prev. 271) and keeps an ‘Overweight’ rating. In wake results, adds Oracle is positioned to benefit from secular growth trends in AI training and inferencing as well as potential upside to increased forecasts.


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  TD Cowen raises PT to USD 375 (prev. 325) and keeps a ‘Buy’ rating. Said its RPO saw an unprecedented USD 317bln Q/Q build. This led ORCL to guide Oracle Cloud Infrastructure (OCI) for the next 5yrs with a target of a 70% CAGR from USD 10bln in FY25 to USD 144bln in FY30. Cowen thinks this not only proves Oracle's dominance in AI training, but also its emerging positioning in AI inference.


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  Citi raises PT to USD 410 (prev. 240) and upgrades shares to a ‘Buy’ from ‘Neutral’ after "an historic Q1 bookings quarter". Firm notes the USD 330bln+ of bookings in Q1 was "surprising" and gives confidence in the durability and profitability of Oracle's AI business. Cloud database traction is also improving, and Cos. lack-of-profitability concerns were "better addressed" with mid-teens FY26 EBIT growth guidance.


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  UBS raises PT to USD 360 (prev. 280) and keeps a ‘Buy’ rating. Noted Oracle's pending growth acceleration is so material that the stock still works from here as the acceleration story plays out.


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  Mizuho raises PT to USD 350 (prev. 300) and keeps an ‘Outperform’ rating. Firm notes while Q1 report was "mixed," "explosive" AI-driven remaining performance obligation growth was +359% Y/Y to USD 455bln. Number highlights Oracle's rise as a key AI infrastructure provider, and Mizuho is now more bullish on Oracle over the longer term.


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  BMO Capital raises PT to USD 345 (prev. 275) and keeps an ‘Outperform’. Cites an incredibly strong bookings quarter, shown by the 359% Y/Y RPO growth. Despite a lackluster August quarter and November quarter revenue guide, BMO has "incremental confidence" in the durability of Cos. revenue and operating income growth.


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  Guggenheim raises PT to USD 375 (prev. 250) and keeps a ‘Buy’ rating. Adds Oracle's results "give a peek into a future that we haven't seen in over 25 years covering the Software sector".


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  Evercore ISI raises PT to USD 340 (prev. 270) and keeps an ‘Outperform’ rating. While top and bottom line were largely in line with expectations, the "standout from the quarter" was RPO surging 359% to USD 455bln, who says this "huge jump" in OCI RPO supports Cos. long-term revenue and EPS acceleration thesis.


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  Jefferies raises PT to USD 360 (prev. 270) and keeps a ‘Buy’ rating. Notes Cos. RPO "stole the show", which easily topped estimates and brings confidence in Oracle's "acceleration narrative". Jefferies now views Oracle's long-term forecasts as conservative and sees them moving higher following the analyst day.


• Stifel raises PT to USD 350 (prev. 250) and keeps a ‘Buy’ rating.


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  Piper Sandler raises PT to USD 330 (prev. 270) and keeps an ‘Overweight’ rating. The firm says that the transformation of Oracle from technology stalwart into a secular winner in AI infrastructure was on full display.


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  BofA raises PT to USD 368 (prev. 295) and upgrades shares to a ‘Buy’ from ‘Neutral. Cites "exceptional" RPO and backlog growth in Q1. Oracle attracting the largest of the AI enterprises, including OpenAI, xAI, Meta, NVIDIA and AMD as visible reference customers should help position it to capture share of AI compute.


• Melius Research raises PT to USD 370 (prev. 270) and keeps a ‘Buy’ rating.


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  Citizens JMP raises PT to USD 342 (prev. 315) and keeps an ‘Outperform’ rating. Oracle reported "spectacular" RPO of USD 455bln, +359% Y/Y and its outlook included very strong cloud revenue for multiple years.

Reaction details (13:47)

• Oracle shares have surged in excess of 31% after-earnings as its RPO saw an unprecedented USD 317bln Q/Q build to USD 455bln, and stellar cloud revenue expectations.

Analysis details (13:55)

• Q1 2026 (USD): Adj. EPS 1.47 (exp. 1.48), Revenue 14.9bln (exp. 15.02bln). Q1 cloud revenue +28% Y/Y at USD 7.2bln. Q1 Remaining Performance Obligations (RPO) +359% Y/Y to USD 455bln after four multi-billion dollar contracts, with cloud revenue expected to grow 77% to USD 18bln in FY26 and reach USD 144bln in five years. CTO Larry Ellison highlighted 1,529% Q1 MultiCloud database growth and announced the upcoming Oracle AI Database launch, which will launch next month at Oracle AI World. Guidance: Q2 EPS 1.61-1.65 (exp. 1.62), Revenue +12-14%, Cloud revenue +32-36%; FX seen having a 0.03 positive impact on EPS, and a 1% positive effect on revenue. Raises FY26 capex view, sees USD 35bln.

10 Sep 2025 - 13:55- ForexResearch Sheet- Source: Newsquawk