Oracle (NYSE:ORCL) laid out a roadmap to impressive revenue and EPS gains over the next several years at the company’s CloudWorld conference and Analyst Day in Las Vegas this week, prompting positive reviews from most investment firms.
Oracle climbed 2% during early market action on Friday.
Oracle shares increased 16% over the past five trading days. The spark started with the release of the software and cloud solution company’s first quarter earnings report on Monday. The rally continued after the company’s Analyst Day on Thursday, when it revealed annual revenue will hit $104B by 2029 while earnings per share will increase more than 20% over the period.
“This matched the bullishness the Company has been coyly hinting at for a number of months now; this was the upside to expectations that justifies continued multiple expansion, in our view,” said KeyBanc analyst Jackson Ader, in an investor note.
“The targeted 20%+ EPS growth between FY26 and FY29 implies incremental margins north of 50% for those years, showing that the expense base will not need to grow nearly as quickly as the top line,” Ader added.
KeyBanc maintains its Overweight rating on the stock and increased its price target to $190 from $175.
“Oracle is clearly making strides with the cloud in both infrastructure and applications, with a growing regional footprint (50 public cloud regions across 24 countries with each region offering 100+ cloud services),” said Bank of America Securities analysts Brad Sills and Carly Liu, in a Friday investor note.
BofA maintained its Neutral rating and increased its price target to $195 from $175. The firm also increased its fiscal years 2026 and 2027 revenue estimates to $65B from $64B and $73B from $71B, respectively.
“In the applications stack, the roadmap includes the introduction of 50+ AI-enabled agents to the Fusion Cloud Applications Suite,” Sills added.
Evercore maintained its Outperform rating on Oracle, and raised its price target to $190 from $175.
Meanwhile, Stifel rates the stock at Hold, and has a lower price target of $155.
“While sustained revenue growth is likely in coming years as existing hyperscaler database partnerships gain momentum, it is somewhat difficult to underwrite 16% out-year growth given the consumption nature of this revenue growth,” said Stifel analyst Brad Reback.
Oracle has a Buy rating from both Seeking Alpha and Wall Street analysts. It has a Hold rating from Seeking Alpha’s Quant system, which routinely beats the market.