Oracle (ORCL)

[winston]

not vested

Oracle - Stock Analyst Research
Target Price* 344.00
Recommendation BUY

Oracle Corp – FY27e revenue guidance raised by US$4bn

1H26 revenue/ adj. PATMI were within our expectations at 47%/43% of FY26e forecasts, with growth expected to accelerate in 2H26e.

Group revenue rose 14% YoY, led by Oracle Cloud’s 24% YoY growth amid strong cloud infrastructure demand.

Oracle also recorded a US$2.7bn pre-tax gain from the sale of its Ampere Computing interest.

Group revenue guidance remains at US$67bn for FY26e, while CAPEX is now projected at US$50bn, up US$15bn from the 1Q25 forecast.

FY27e revenue is raised by US$4bn following higher RPO this quarter.

For 3Q26e, Oracle expects group revenue growth of 16–18%, driven by Oracle Cloud accelerating 37–41% YoY, up from 25% a year ago.

Adjusted EPS is projected to rise 16–18%, to US$1.70–1.74.

We maintain a BUY recommendation with a lower DCF target price at US$344
(previously US$350) after increasing FY26e CAPEX by US$15bn to US$50bn.

We expect an acceleration in 2H26e as more data centres come online.

We also maintain our FY27e forecasts, as we believe our estimates already sit at the higher end of the range (WACC 6.2%, g 2.5%).

We remain bullish on Oracle as a niche OCI provider and a full-stack AI provider, supported by a significant RPO backlog.

Potential upside hinges on faster execution of multi-billion-dollar AI deals.

Source: Phillips

https://www.poems.com.sg/stock-research/ORCL/

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