Barclays Raises Oracle Price Target to $252 on Accelerating Growth

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Barclays raised its price target on Oracle to $252 from $250 while keeping an Overweight rating, after the cloud giant reported fiscal first quarter results that the bank said show growth has inflected and should keep accelerating. Oracle posted total revenue of $19.3 billion for the quarter, up 30% year over year, the first time Q1 revenue grew sequentially, while cloud infrastructure revenue jumped 121% to $7.4 billion and non-GAAP earnings per share came in at $1.92, up 30%. Remaining performance obligations, a measure of contracted future revenue, grew by $26 billion during the quarter, and Oracle now expects about half of its total backlog to convert into revenue over the next 36 months. Barclays also pointed to Oracle's funding setup, including the completion of a previously announced $20 billion market equity issuance, and said management handled questions about data center delays in New Mexico and Wisconsin well; co-CEO Clay Magouyrk said neither site will have any impact on previously stated FY 2027 revenue or earnings guidance. Oracle raised its full-year revenue guidance to at least $90 billion, a 34% increase from the prior year, and lifted its non-GAAP EPS guidance to $8.10, with second quarter total revenue growth expected at 30% to 34% and cloud revenue growth of 65% to 71%.

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Cloud & Digital Infrastructure▲ · 1 stocks
Oracle Corporation
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Barclays raised its Oracle price target to $252 and kept Overweight after Q1 results showed accelerating growth, with revenue up 30% and cloud infrastructure up 121%.

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