Analysts cited strong Q4 results and optimistic FY26 guidance, but cautioned that rising capex may weigh on margins and operating income despite growth in cloud and AI momentum.

Shares of software giant Oracle Corporation (ORCL) traded over 9% higher in Thursday’s premarket session, as Wall Street analysts raised their price targets following a better-than-expected fourth-quarter (Q4) earnings and guidance.

The database software and cloud computing firm’s Q4 revenue grew 11% year-on-year (YoY) to $15.9 billion, beating the consensus estimate of $15.58 billion, as per Finchat data.

The adjusted earnings per share (EPS) of $1.70 surpassed an estimate of $1.64.

Stifel boosted its price target on Oracle to $180 from $150 while maintaining a ‘Hold’ rating, following fiscal Q4 results, as per TheFly. 

In a post-earnings note, the research firm acknowledged the clear benefits of Oracle’s accelerating growth but cautioned that rising expenses may cause operating income to trail revenue growth in upcoming quarters. 

Stifel also noted Oracle may need to raise additional capital to support its growing capital expenditure requirements.

BofA increased its price target on Oracle to $220 from $156 while maintaining a ‘Neutral’ rating. The research firm highlighted Oracle’s 27% rise in Q4 cloud subscriptions, led by a 14% YoY gain in SaaS revenue on a constant currency basis. 

The brokerage expressed optimism about the company’s accelerating growth, which now aligns with mid-teen levels seen among similar software providers. 

Oracle's strong remaining performance obligations (RPO) outlook suggests ongoing momentum, though higher capital spending is expected to pressure margins, BofA indicated. 

While demand for Oracle Cloud Infrastructure and AI-related deals appears strong, the brokerage noted uncertainty around future profitability as elevated capex may impact gross margins.

JPMorgan analyst Mark Murphy increased Oracle’s price target to $185 from $135 while maintaining a ‘Neutral’ rating after the company’s latest earnings release. 

In a note to investors, Murphy highlighted Oracle’s continued strength in artificial intelligence and noted the company’s optimistic outlook for fiscal 2026 and beyond. 

While acknowledging Oracle’s progress in AI, JPMorgan emphasized it is still cautious about the stock’s current valuation.

On Stocktwits, retail sentiment around Oracle remained in ‘extremely bullish’ territory.

ORCL's Sentiment Meter and Message Volume as of 08:30 a.m. ET on Jun.12, 2025 | Source: Stocktwits

Oracle stock has gained over 5% year-to-date and over 25% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<