Oracle's Ambitious $100 Billion Revenue Forecast Sparks Market Reaction

Oracle shares rise as it expects to cross $100 billion in fiscal 2029 sales

(Reuters) - Oracle shares rose more than 6% in premarket trading on Friday after the company said it expects to cross $100 billion in revenue in fiscal 2029, as the popularity of AI drives demand for its cloud services. Businesses are heavily reliant on cloud services provided by companies such as Oracle, Microsoft and Amazon to run their day-to-day operations and harness the power of AI. "Even assuming this is aspirational, it sends yet another signal of increasing optimism from a veteran and proven leadership team," brokerage Piper Sandler said in a note about the company's "surprising" fiscal 2029 revenue forecast. Oracle, which counts AT&T, Lyft and Cognizant among its clients, now expects fiscal 2026 revenue to be $66 billion, compared with its earlier forecast of $65 billion. The Texas-based company beat analysts' estimates and reported $13.31 billion in first-quarter revenue on Monday. It provided its fiscal 2029 forecast and raised its fiscal 2026 revenue forecast on Thursday at an annual briefing for financial analysts. Its shares have risen more than 50% this year as of Thursday's close, far outpacing those of larger rival cloud providers Microsoft and Amazon.com, which are up about 14% and 23%, respectively. Brokerage Bernstein said Oracle was "surprisingly well positioned" to capture cloud services market share. Oracle trades at a forward price-to-earnings ratio of 24.65, while Microsoft trades at 31.52 and Amazon at 33.73. At least six brokerages have raised their target prices on the company after it provided a robust fiscal 2029 forecast. (Reporting by Jaspreet Singh in Bengaluru; Editing by Pooja Desai)

Oracle Stock Jumps on Rosy Long-Term Sales View

Oracle (ORCL) shares surged in premarket trading Friday, a day after Executive Vice President Doug Kehring told analysts its annual revenue will rise to at least $104 billion in fiscal 2029. Citi analysts called Kehring's projections "lofty," adding that the new 2029 target, a bet on artificial intelligence (AI)-fueled growth, exceeded even the most bullish expectations. "FY29 is a ways out, and it's hard for us to underwrite given the rapid evolving GenAI/tech landscape and questions around durability of AI workloads," they wrote, saying the targets implied that Oracle would chalk up an earnings per share (EPS) compound annual growth rate (CAGR) of at least 20% between fiscal 2026 to fiscal 2029. The forecast comes just days after the software maker posted Wall Street-beating quarterly results and announced a multicloud partnership with Amazon's (AMZN) Amazon Web Services. The company also reportedly raised its sales outlook for fiscal 2026 to at least $66 billion from a prior target of $65 billion, ahead of the $64.8 billion consensus estimate of analysts polled by Visible Alpha. Oracle didn't immediately return an Investopedia request for comment. Shares rose 6% soon before the opening bell and are up more than 50% this year on booming demand from AI developers for cloud computing.

Oracle shares pare gains as analysts weigh over $100 billion fiscal 2029 revenue forecast

Businesses are heavily reliant on cloud services provided by companies such as Oracle, Microsoft and Amazon to harness AI capabilities and run day-to-day operations. However, some analysts said the forecast was ambitious. Oracle will need to make "significant acquisitions" to achieve these targets, said D.A. Davidson & Co analyst Gil Luria, calling it "highly aspirational". "The company is extrapolating the rapid rise in demand for renting out GPU (graphics processing unit) capacity well into the future." Oracle also raised its fiscal 2026 revenue to $66 billion, from $65 billion earlier. This implies an annual growth rate of 11.7% for the first two years followed by an even higher 16.1% growth rate for the remaining three years, said Michael Ashley Schulman, chief investment officer at Running Point Capital. Its shares were still up 1.9%. At least nine brokerages raised their target prices on the company. Brokerage Bernstein said Oracle was "surprisingly well positioned" to capture cloud services market share. "Even assuming this is aspirational, it sends yet another signal of increasing optimism from a veteran and proven leadership team," brokerage Piper Sandler said in a note. Its shares have risen more than 50% this year as of Thursday's close, far outpacing those of larger rival cloud providers Microsoft and Amazon.com, which are up about 14% and 23%, respectively. Oracle trades at a forward price-to-earnings ratio of 24.65, while Microsoft trades at 31.52 and Amazon at 33.73. (Reporting by Jaspreet Singh in Bengaluru; Editing by Pooja Desai)

Oracle shares pare gains as analysts weigh over $100 billion fiscal 2029 revenue forecast

(Adds analyst comment in paragraphs 3 and 4, updates shares) Oracle shares pared most of their gains on Friday after spiking nearly 8%, with some analysts expressing reservations about the company's forecast of crossing $100 billion in revenue in fiscal 2029, driven by AI-led demand for cloud services. The company, which counts AT&T, Lyft and Cognizant among clients, forecast fiscal 2029 revenue of $104 billion at an annual briefing for financial analysts on Thursday. Businesses are heavily reliant on cloud services provided by companies such as Oracle, Microsoft and Amazon to harness AI capabilities and run day-to-day operations. However, some analysts said the forecast was ambitious. Oracle will need to make "significant acquisitions" to achieve these targets, said D.A. Davidson & Co analyst Gil Luria, calling it "highly aspirational". "The company is extrapolating the rapid rise in demand for renting out GPU (graphics processing unit) capacity well into the future." Oracle also raised its fiscal 2026 revenue to $66 billion, from $65 billion earlier. This implies an annual growth rate of 11.7% for the first two years followed by an even higher 16.1% growth rate for the remaining three years, said Michael Ashley Schulman, chief investment officer at Running Point Capital. Its shares were still up 1.9%. At least nine brokerages raised their target prices on the company. Brokerage Bernstein said Oracle was "surprisingly well positioned" to capture cloud services market share. "Even assuming this is aspirational, it sends yet another signal of increasing optimism from a veteran and proven leadership team," brokerage Piper Sandler said in a note. Its shares have risen more than 50% this year as of Thursday's close, far outpacing those of larger rival cloud providers Microsoft and Amazon.com, which are up about 14% and 23%, respectively. Oracle trades at a forward price-to-earnings ratio of 24.65, while Microsoft trades at 31.52 and Amazon at 33.73. (Reporting by Jaspreet Singh in Bengaluru; Editing by Pooja Desai)

Oracle Stock Jumps as Cloud Revenue Climbs. Is It Too Late to Buy the Stock? | The Motley Fool

Once considered the after-ran of the cloud computing industry behind the big three players in the industry, Oracle (ORCL 2.67%) showed with its fiscal first-quarter results that it, too, is benefiting from the boom in artificial intelligence (AI) spending. Let's take a close look at the company's most recent results and how it is benefiting from AI. Oracle's overall fiscal Q1 revenue rose 7% to $13.3 billion, but it was the 21% jump in cloud service revenue to $5.6 billion that got investors excited. Within the cloud segment, cloud infrastructure revenue soared 45% to $2.2 billion in the quarter ended Aug. 31, while cloud application revenue climbed 10% to $3.5 billion. OCI (Oracle Cloud Infrastructure) consumption revenue, meanwhile, was up 56%, with the company saying demand outstripped capacity. Meanwhile, Oracle has multi-cloud agreements in place with the big three hyperscale cloud computing providers: Microsoft, Alphabet's Google Cloud, and Amazon's Amazon Web Services. With the AWS deal just recently signed, Oracle said that its customers will soon be able to use its database technology from within every hyperscale company's cloud offering. Oracle's 85 data centers in operation are all relatively new, and it currently has another 77 under construction. The company said it is looking into using modular nuclear reactors for power generation on one project. Elon Musk's xAI used Oracle to train its Grok 2 large language model (LLM). However, Musk has built his own AI data center in order to train its next-generation LLM Grok 3, as Oracle could not supply as many graphics processing units (GPUs) as xAI wanted. On the database front, the company is shifting to autonomous databases, which it says will lead to cost savings and have much higher margins. Autonomous databases use machine learning to automate routine database tasks without human intervention. Remaining performance obligations (RPO) surged 53% to $99 billion. Oracle said cloud RPO soared more than 80%. RPO is the total amount of money invoiced for contracts that have not yet been delivered. It is an indication of future growth, although the length of contracts impacts the number. Earnings per share (EPS), meanwhile, rose 20% to $1.03. Oracle forecast fiscal second-quarter revenue to rise by 8% to 10%, with cloud revenue growing in a range of 24% to 26%. Adjusted EPS is expected to grow between 8% and 12%. For the full year, the company projected revenue growth in the double digits, with cloud revenue growth to be higher. Longer-term, the company believes advancements in AI models will lead to a strong investment cycle over the next five to 10 years as customers race to stay on top in AI. While things are looking up for Oracle, there are a couple of notable things to watch for at the moment. One is that it is losing a pretty large customer in xAI, and the start-up was reportedly set to sign a $10 billion multiyear deal with Oracle before deciding to build its own data center. Meanwhile, although its earnings were strong, $157 million, or $0.06 per share, of the improvement came from an accounting change increasing the useful life of its servers and networking equipment assets from five years to six. Otherwise, EPS growth would have been less than 13%. This change also reduced operating expenses by $197 million and improved the gross margin, which otherwise would have fallen due to the lower-gross-margin profile of its OCI consumption revenue. From a valuation standpoint, Oracle trades at a forward P/E of 25 based on current fiscal-year analyst estimates. Unlike many large tech companies, Oracle also carries a lot of debt. Net debt stood at around $73.6 billion at the end of fiscal Q1. Adjusting for debt, its enterprise-value-to-earnings ratio would be closer to 29 times. Given that its EPS growth was about 13% without the accounting change, I would say the stock is a bit on the pricey side. Overall, I think Oracle is doing a lot of good things with its cloud division, but I wouldn't be chasing the stock at these levels.

Oracle shares rise further to record high on bumper AI-fueled forecast By Investing.com

Investing.com-- Shares of Oracle Corporation (NYSE:ORCL) surged in aftermarket trade on Thursday, pushing further into record-high territory after the cloud computing firm flagged strong revenue growth in the coming years on artificial intelligence demand. Oracle jumped 6.4% to an indicated record high of $171.51, extending its recent run of gains after it posted strong quarterly earnings earlier this week and also clinched an agreement with Amazon (NASDAQ:AMZN).com's web services. The firm hiked its fiscal 2026 annual revenue forecast to $66 billion from a prior forecast of $65 billion- higher than Bloomberg estimates of $64.5 billion. The company said annual revenue will hit at least $104 billion by fiscal 2029. The company has benefited from increased cloud computing requirements from the rapidly-growing artificial intelligence industry, although it does compete on this front with tech giants GOOG, Microsoft (NASDAQ:MSFT) and Amazon. Oracle is one of the best-performing software stocks so far this year and is trading up around 53% as of Thursday's close.

Oracle bumps up fiscal 2026 revenue forecast, lifting stock 6%

Oracle shares rose about 6% in extended trading on Thursday after the database software maker raised its fiscal 2026 revenue guidance and issued a heady forecast for the 2029 fiscal year. At an analyst meeting coinciding with the Oracle CloudWorld conference in Las Vegas, the company said it now sees at least $66 billion in fiscal 2026 revenue. Analysts surveyed by LSEG were anticipating $64.5 billion. Oracle's good week is continuing. Shares gained around 15% the past three trading sessions and are trading at a record after the company announced quarterly results that topped expectations. The stock is now up 55% for the year, behind only Nvidia among large-cap tech companies. Oracle sometimes also gives guidance multiple years out. The company said on Thursday that, looking out to the 2029 fiscal year, it sees over $104 billion in revenue, along with year-over-year growth in earnings per share of 20%. "Those numbers should not be a problem. At all," CEO Safra Catz said at the event. She pointed to partnerships that will allow companies to use Oracle database software through top-tier cloud providers Amazon, Google and Microsoft. Oracle announced the Amazon relationship on Monday. The company's cloud infrastructure revenue grew 45% in the most recent quarter, a quicker pace than at Amazon, Google or Microsoft. In addition to generating more revenue as companies move workloads to the cloud from their data centers, Oracle has a shot at growing in artificial intelligence. On Wednesday, Oracle said its cloud unit that competes has begun taking orders for a cluster of over 131,000 next-generation "Blackwell" graphics processing units from Nvidia. As Oracle plans to expand revenue, Catz said she expects capital expenditures to double in the current 2025 fiscal year.

Oracle climbs after disclosing raised revenue guidance at analyst meeting (NYSE:ORCL)

Oracle (NYSE:ORCL) shares climbed 6% during post-market trading Thursday after it increased revenue guidance at its financial analyst meeting. Oracle raised its revenue outlook for fiscal 2026 to $66B from a prior target of $65B. It expects its revenue to reach a towering $104B by fiscal 2029 Oracle co-founder and chief technology officer Larry Ellison said artificial intelligence and cloud infrastructure continues to drive opportunities. He mentioned customers such Elon Musk's xAI as well as an array of industries across the globe, particularly in Europe. In the past week, Oracle has announced strategic partnerships with Amazon Web Services (AMZN) and Google Cloud (GOOG)(GOOGL). More on Oracle Oracle Review: Becoming The Foundation Of AI Oracle Post-Earnings: Multi-Cloud Strategy To Pay Off, Big Time - Upgrade To Buy Oracle Earnings: No Crystal Ball Needed, Still In Growth Mode JPMorgan expands Oracle partnership to streamline client payments Oracle pops on earnings and takes many ETFs higher with it

Oracle shares target lifted on cloud, AI growth prospects By Investing.com

On Friday, Piper Sandler increased its price target on Oracle Corporation (NYSE:NYSE:ORCL) shares to $185.00, up from the previous target of $175.00, while maintaining an Overweight rating on the stock. The revision follows a recent evaluation of the company's financial outlook, which anticipates significant revenue growth. Oracle's leadership team has demonstrated increased confidence in the company's growth trajectory, particularly in the cloud and artificial intelligence sectors. This optimism is rooted in the company's ambitious financial targets, which include a forecasted revenue of $104 billion by fiscal year 2029, a substantial increase from the $53 billion expected in fiscal year 2024. In addition, the firm has adjusted its revenue estimates for fiscal year 2026, now projecting revenues to surpass $66 billion, an uptick from the prior estimate of $65 billion. This upward revision reflects the potential for a sustained period of reacceleration in Oracle's revenue growth. The new price target is based on a calendar year 2026 estimated price-to-earnings (P/E) ratio of 24 times, a slight increase from the previously assumed 23 times P/E ratio. The adjustment takes into account the company's prospects for higher growth and margin expectations. The analyst's statement underscores the belief that Oracle's established and effective leadership is well-positioned to capitalize on the long-term secular trends of cloud computing and artificial intelligence. This, in turn, may justify a higher valuation multiple for the company's shares. Oracle's strategic direction and financial goals indicate a potential for a multi-quarter and possibly multi-year acceleration in business performance. As Oracle Corporation (NYSE:ORCL) receives an upgraded price target from Piper Sandler, real-time data from InvestingPro complements the analyst's optimism. Oracle boasts a solid market capitalization of $447.18 billion, reflecting its significant presence in the industry. With a P/E ratio of 40.52 and adjusted P/E ratio for the last twelve months as of Q1 2025 standing at 38.88, the company trades at a premium, indicating high investor confidence in its future earnings potential. Moreover, Oracle's revenue has grown by 5.6% over the last twelve months as of Q1 2025, showcasing its ability to expand financially. Two InvestingPro Tips highlight important considerations for investors. Firstly, Oracle has impressively raised its dividend for 11 consecutive years, which could be a sign of the company's commitment to shareholder returns. Secondly, Oracle is a prominent player in the Software industry, which may provide it with a competitive edge in capitalizing on market opportunities. For those seeking more in-depth analysis, there are 20 additional InvestingPro Tips available, offering valuable insights into Oracle's financial health and market position. While the company's stock is currently trading near its 52-week high, as indicated by a price that is 99.41% of this peak, the robust revenue growth and consistent dividend payments could be key factors in maintaining investor interest. As Oracle continues to navigate the competitive landscape of cloud computing and artificial intelligence, these financial metrics and InvestingPro Tips provide a nuanced view of its market valuation and growth prospects.

Oracle Analysts Praise 'Resilient, Sticky' Revenue Stream, AI Growth After CloudWorld Conference - Oracle (NYSE:ORCL)

Analysts are optimistic about Oracle's multi-cloud and AI focus, with raised FY26 and FY29 revenue targets boosting confidence. Oracle Corp. ORCL garnered strong reactions from analysts following its Financial Analyst Day at CloudWorld, where the company showcased its ambitious AI and cloud growth targets. JPMorgan - Neutral with a Raised Price Target Analyst Mark R. Murphy reaffirmed a Neutral rating, raising the price target from $120 to $140. He highlighted Oracle's bold FY29 guidance, projecting a $104B revenue target with 16% CAGR post-FY26. Murphy noted Oracle's "resilient, sticky, and largely recurring revenue stream" and the growth in cloud applications, Oracle Cloud Infrastructure (OCI), and strategic hardware, all of which are driving the company's expansion. He also emphasized Oracle's >70% recurring revenue base, which contributes to the company's stability. However, he remains cautious, citing balanced risk-reward dynamics at current stock levels. JMP Securities - Market Outperform on Cloud Leadership Analyst Patrick Walravens raised his price target to $175, maintaining a Market Outperform rating. He was optimistic about Oracle's cloud momentum, noting that the company's organic revenue growth has reached double digits for the first time in over a decade. Walravens credited Oracle's success to its prescient investments in Nvidia Corp's NVDA GPU clusters, its multi-cloud architecture, and a growing regional footprint. Additionally, he underscored the company's massive $745 billion total addressable market and its increasing AI-driven workloads, positioning Oracle as a leader in the cloud space. BofA Securities: Increasing Price Target to $195 Analyst Brad Sills boosted Oracle's price target from $175 to $195, with an upside of 20.8%. He highlighted Oracle's focus on OCI, driven by its AI roadmap and data center scale, which is accelerating cloud migrations. Sills was particularly impressed by the company's ability to offer 10% lower pricing than hyperscalers, which could lead to faster migrations to Oracle's Fusion Cloud suite. However, he acknowledged that Oracle's cloud transition has taken longer than expected due to the slower growth of legacy segments. Piper Sandler: $104B Revenue Target Reflects AI Confidence Analyst Brent A. Bracelin raised his price target to $185, citing Oracle's confidence in AI and cloud growth levers. He called Oracle's $104 billion FY29 revenue goal "bold and ambitious," and he expressed optimism that these tailwinds will support a multi-quarter acceleration that could extend into a multi-year growth phase. Bracelin believes this confidence in Oracle's top-line recovery justifies further multiple expansion. Read Also: Oracle Stock Climbs On $104 Billion FY29 Revenue Forecast: What To Know KeyBanc: AI & Cloud Drive Bullish Outlook Analyst Jackson Ader was equally enthusiastic, raising his price target from $175 to $190. Ader emphasized Oracle's revised FY26 revenue target of $66 billion+ and its ambitious FY29 goal of $104 billion, which reflect the company's increasing bullishness on AI and cloud-driven growth. He pointed to Oracle's confidence in AI's ability to enhance its cloud infrastructure, applications, and databases. Oracle's impressive showing at CloudWorld has strengthened analysts' confidence in the company's cloud and AI capabilities, prompting significant upward revisions in price targets. Analysts believe this momentum will drive long-term growth. Read Next: Oracle Quietly Gains Momentum While Nvidia, Meta Dominate AI Spotlight Photo: Shutterstock Market News and Data brought to you by Benzinga APIs