Oracle Corporation (NYSE:ORCL) experienced a flurry of price target upgrades on Wednesday as analysts reacted to the company’s bullish forecast for cloud orders, fueled by rising demand for artificial intelligence services.
The tech giant projected cloud infrastructure revenue growth of roughly 77% to $18 billion in the current fiscal year, with expectations to surge further to $32 billion in 2027 and $73 billion in 2028.
Shares jumped as much as 27% in after-hours trading, with investors largely overlooking weaker-than-anticipated quarterly results, which were eclipsed by a 359% spike in Oracle’s remaining performance obligations (RPO), a key measure of booked revenue.
Jefferies raised its price target for Oracle to $360 from $270 while maintaining a Buy rating, noting that Oracle’s RPO figures “stole the show” and reinforced confidence in “ORCL’s acceleration narrative.”
“We see room for the stock to grind even higher as optimism builds around the outlook, especially if backlog growth begins to convert into rev accel,” Jefferies analysts added.
BMO Capital Markets also increased its price target to $345 from $275 and kept an Outperform rating, praising Oracle’s RPO performance and expressing confidence in revenue and operating income growth, while cautioning about the challenges of translating RPO gains into actual revenue.
Mizuho lifted its target to $350 from $300 and maintained an Outperform rating, highlighting Oracle’s “rise as a key AI infrastructure provider” and noting strong demand from major clients including OpenAI, Meta, xAI, and Nvidia.
D.A. Davidson set its price target at $300, up from $220, keeping a Neutral rating. While the brokerage recognized Oracle’s robust cloud outlook, it raised concerns about long-term margins, observing that “at best, Oracle is operating their virtual machines or GPU rental business at single-digit operating margins, if not serving compute at a loss in some instances.”
Analysts from Jefferies, BMO, and Mizuho flagged Oracle’s AI World conference, scheduled for October 13-16, as the company’s next major catalyst.
Oracle shares have risen 45% so far in 2025, benefiting from a surge in AI-driven demand for cloud services, a trend expected to continue as Wall Street’s AI Hyperscalers maintain high levels of spending.
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