These Analysts Increase Their Forecasts On Oracle Following Upbeat Q4 Earnings

Oracle reported Q4 revenue of $15.9 billion and adjusted EPS of $1.70, both exceeding analyst expectations. CEO Safra Catz projected significant revenue growth acceleration in FY26, with total cloud growth expected to surpass 40% and cloud infrastructure growth exceeding 70%. Following the earnings release, Piper Sandler raised its price target to $190 while WestPark Capital increased its target to $246, though Oracle's shares closed down 0.6%.

Analysis

Oracle Corp. (ORCL) reported a robust fourth quarter, with revenue of $15.9 billion, surpassing analyst estimates of $15.58 billion, and adjusted earnings per share of $1.70, which exceeded the consensus estimate of $1.64. Management provided a highly optimistic outlook for fiscal year 2026, with CEO Safra Catz projecting a significant acceleration in revenue growth. Specifically, total cloud growth, encompassing both applications and infrastructure, is anticipated to rise from 24% in FY25 to over 40% in FY26. The cloud infrastructure segment's growth rate is expected to be even more pronounced, increasing from 50% in FY25 to over 70% in FY26. Furthermore, Remaining Performance Obligations (RPO) are forecasted to grow by more than 100% in FY26, signaling strong future revenue visibility and demand. Alongside these financial results and forward-looking statements, Oracle's board declared a quarterly cash dividend of 50 cents per share. Despite these positive indicators, Oracle's shares experienced a marginal decline of 0.6% to close at $176.38 on the day of the announcement. Analyst sentiment, however, appears to be strengthening post-earnings, evidenced by Piper Sandler raising its price target to $190 (maintaining a Neutral rating) and WestPark Capital boosting its price target to $246 (maintaining a Buy rating).

Key Decisions for Investors

• Investors should consider Oracle's strong Q4 financial performance and exceptionally bullish FY26 guidance, particularly the projected acceleration in cloud revenue and RPO growth, as significant positive catalysts for the stock.
• The slight share price dip following the announcement, contrasted with positive news and analyst upgrades, may present a tactical consideration, though careful monitoring of the company's execution against its ambitious FY26 targets will be crucial.
• The declared quarterly dividend of 50 cents per share adds a component of income return, complementing the company's aggressive growth narrative focused on its expanding cloud business.