Oracle, an artificial intelligence infrastructure company, is set to announce its first quarter results for fiscal year 2026 after the market wraps up on Tuesday, September 9th. As of now, Oracle’s stock has seen a boost of 3.4%. It’s worth diving into what’s led top analysts to elevate their price targets.
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Analysts on Wall Street are predicting that Oracle will report earnings per share (EPS) of $268, a 6.5% increase from the previous year, and an estimated revenue increase of 13%, reaching $15.04 billion compared to the last quarter.
Top Analysts Raise Price Targets for ORCL Stocks
Barclays analyst Raimo Lenschow has bumped up the price target for Oracle’s stock from $221 to $281, maintaining a buy rating. He observes that while the first quarter of FY26 is generally a quieter season, this year stands out as investors are keen on the annual recurring revenue (ARR) figures announced in June.
On the other hand, JP Morgan analyst Mark Murphy has adjusted the price target for Oracle upward from $185 to $210 but has retained a hold rating. He notes that Oracle is riding a wave of momentum within the AI infrastructure sector, yet he remains cautious, feeling that the stock is currently priced at a premium.
Moreover, Morgan Stanley analyst Keith Weiss has raised his price target for Oracle from $175 to $246, also keeping a hold rating. This increase reflects strong growth in the AI infrastructure business, with long-term revenue estimates looking promising. Analysts are eyeing a rise in Oracle’s FY29 revenue target, projecting it could jump from $100 billion to $125 billion, bolstered by recent contract wins.
That said, Weiss cautions that overall profit pressures might squeeze FY29 EPS estimates to the range of $11.50 to $12.00, which is slightly below the consensus estimate of $12.29. Analysts seem to prefer a wait-and-see approach with Oracle for now, hoping for clearer indicators of long-term margins.
TD Cowen Analysts Focus on Oracle’s First Quarter Revenue
Derrick Wood of TD Cowen has reiterated his buy rating for Oracle, setting a price target of $325. He emphasizes that investors will closely scrutinize the performance of Oracle Cloud Infrastructure (OCI) alongside the company’s remaining performance obligations (RPOs). Wood anticipates strong growth in both SaaS and OCI, forecasting that RPOs will strengthen as demand for AI-related workloads rises, and that Oracle is making progress towards a target exceeding $275 billion in RPO.
Wood also pointed out that his research indicates solid demand for OCI from major clients, along with a trend towards multi-cloud deployments and a shift towards fusion supply. He believes the growth potential for OCI in FY26 is still being underestimated.
Do You Buy, Sell, or Hold Oracle Stock?
As the first quarter revenue announcement approaches, Wall Street generally holds a buy consensus for Oracle stock, supported by 24 buy ratings against 11 holds. The average target among analysts is set at $258.43, suggesting a potential upside of 7.4% from current price levels.
