Oracle's Cloud And Revenue Ambitions Draw Wall Street's Backing

2025-10-17 03:13:46

(MENAFN- AsiaNet News)

Oracle Corp. (ORCL) received a wave of positive analyst reactions following its analyst day event, where management laid out financial targets for the end of the decade.

The company projected fiscal year 2030 revenue of $225 billion and earnings per share (EPS) of $21, signalling expansion plans anchored by its cloud infrastructure strategy.

Oracle also raised its fiscal year 2030 Oracle Cloud Infrastructure (OCI) revenue outlook to $166 billion and stated that remaining performance obligations (RPO) now exceeded $500 billion as customer demand far exceeded supply. The executives reassured analysts that its $60 billion, six-year AI infrastructure contract will deliver a 35% margin, easing concerns about profitability pressures from its large-scale AI investments.

While Bank of America acknowledged the company's EPS margin goals appear realistic, it flagged challenges in rapidly scaling data center capacity due to supply constraints involving real estate, energy, and GPU availability, according to TheFly. The firm reiterated its 'Buy' rating and set a $368 price target.

Oracle stock traded over 6% lower on Friday afternoon and was the second-most trending equity ticker on Stocktwits. Retail sentiment around the stock shifted to 'bearish' from 'extremely bearish' the previous day. Message volume changed to 'normal' from 'low' levels in 24 hours.

ORCL's Sentiment Meter and Message Volume as of 12:00 p.m. ET on Oct. 17, 2025 | Source: Stocktwits

Piper Sandler analyst Brent Bracelin lifted the firm's price target to $380 from $330, maintaining an 'Overweight' rating. The firm was encouraged by the company's remaining performance obligations exceeding $500 billion, improved gross margin visibility for OCI, and the reaffirmed $21 EPS target.

TD Cowen also raised its price target on Oracle to $400 from $375 while keeping a 'Buy' rating. The firm called the updated guidance“highly encouraging,” noting that OCI revenue projections exceeded $25 billion and EPS forecasts were also above Wall Street expectations.

Oracle stock has gained over 75% in 2025 and over 66% in the last 12 months.

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