Analysts reboot Oracle stock price targets after earnings | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Larry Ellison was having a good day.

The chairman, co-founder and chief technology officer of Oracle (ORCL) spoke during the software company’s fourth-quarter earnings call.

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“Oracle’s future is bright in this new era of cloud computing,” Ellison told analysts. “Oracle will be the number one cloud database company. Oracle will be the number one cloud applications company. And Oracle will be the number one builder and operator of cloud infrastructure data centers.”

Oracle beat Wall Street’s earnings expectations and boosted its revenue guidance, with Chief Executive Safra Katz declaring that the tech giant “is well on its way to being not only the world’s largest cloud application company, but also one of the world’s largest cloud infrastructure companies.”

“We will build and operate more cloud infrastructure data centers than all of our cloud infrastructure competitors combined,” Ellison said.

“Most of the world’s most valuable data is stored in an Oracle database,” he added. “All of those databases are moving to the cloud. Oracle’s cloud, Microsoft’s (MSFT) Azure cloud, Amazon’s cloud or Google’s (GOOGL) cloud.”

Oracle Co-Founder Larry Ellison says the company’s ‘future is bright in this new era of cloud computing.’

Phillip Faraone/Getty Images

Oracle profit, stock, chairman’s wealth surge

The results were also good news for Ellison’s bank account. His net worth shot up by $26 billion to $243 billion by midday on June 12, enjoying easily the largest daily bump of any billionaire, according to Forbes data.

Ellison vaulted past Amazon (AMZN) Chairman Jeff Bezos, whose net worth is $227 billion and Meta Platforms (META) CEO Mark Zuckerberg, weighing in at $239 billion, for the second spot on Forbes’ real-time billionaires ranking.

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The only one ahead of Ellison was Tesla (TSLA) CEO Elon Musk, whose net worth totals $411 billion.

Oracle’s earnings jumped 9% from a year eearlier, while revenue for the quarter grew 11%, driven by cloud services.

Catz said Oracle expected its total cloud growth rate — applications plus infrastructure — to increase to more than 40% in fiscal 2026 from 24% in fiscal 2025. Its cloud infrastructure growth rate is expected to reach 50% in fiscal 2025 and more than 70% in fiscal 2026.

And remaining performance obligations, which measures backlogged work, is likely to more than double in fiscal 2026.

Oracle stock surged on the earnings beat, with shares leaping 13% at last check to just under $200. The stock is up about 5% in 2025 and 42.5% from a year ago.

“The earnings were strong,” said TheStreet Pro’s Stephen Guilfoyle. “The sales growth was strong. The guidance was outstanding.”

Veteran trader questions Oracle’s balance sheet

Guilfoyle, whose career dates back to the floor of the New York Stock Exchange in the 1980s, said in his recent column that the only thing he didn’t like was the quality of the company’s balance sheet.

Total assets amount to $168.361 billion, he said, of which 39.7% are in goodwill and other intangibles.

“That’s a little bit elevated for my comfort,” he said. “Total liabilities less equity comes to $147.392 billion including a rather daunting looking $85.297 billion in long-term debt. Obviously, this is not one of the better looking ‘big tech’ balance sheets that we have analyzed.”

“That’s going to take time to get squared away, especially if the firm feels pressured to maintain elevated levels of capital expenditures,” Guilfoyle added, putting his price target at “a rough $204.”

Piper Sandler saw a blast from the past in the results, according to The Fly.

The investment firm, which raised its price target on Oracle to $190 from $130 and affirmed a neutral rating on the shares, said the San Francisco company “has entered an entirely new wave of enterprise popularity that it has not seen since the internet era in the late ’90s.”

Piper said it was raising its estimates given increasing visibility into Oracle’s growth potential.

Increasing capital intensity risks that could widen the net-debt position and pressure margins in the short run keep the firm on the sidelines, assuming these risks elevate volatility and hinder expansion of the stock multiple, the report says.

Bank of America raised its price target on Oracle stock to $220 from $156 and also maintained a neutral rating on the shares.

Fourth-quarter cloud subscription growth of 27% was driven by software as a service growing 14% year-over-year in constant currency, said B o fA, which says it is encouraged by accelerating growth that is now in line with other application peers at the mid-teens.

The company’s “impressive” guidance for remaining performance obligations backs sustained momentum, but meaningful investment drives the outlook for capital spending higher, the analyst says.

The pipeline for Oracle cloud infrastructure and artificial-intelligence deals is clearly trending well, B of A said. What is unclear is the trajectory of profitability, with ramping capital spending likely to weigh on gross margin, the firm added.