Overview
- Wedbush’s Dan Ives raised Oracle’s price target to $275 on May 13, marking a second increase in under three weeks with an outperform rating.
- Oracle shares trade about 50% below their September 2025 peak, creating a wide gap between the stock and several analyst targets.
- The company reports $553 billion in remaining performance obligations, including a five‑year, $300 billion OpenAI cloud commitment that represents signed work not yet recognized as revenue.
- Oracle Cloud Infrastructure revenue rose 84% year over year to $4.88 billion, while reported AI infrastructure gross margins reached 32%, with higher‑margin multicloud database services helping overall profitability.
- Analysts remain split on valuation, with targets ranging from $250 to $400, and the June 8 fiscal Q4 report is flagged as the next test for backlog conversion and delivery pace against concerns about heavy spending and $123 billion in net debt.