Mizuho Reiterates Outperform Rating on Oracle (March 11)
Mizuho analyst Siti Panigrahi reiterated an Outperform rating and $400.00 price target on Oracle (NYSE: ORCL).
“Oracle delivered a strong FQ3, with revenue of $17.2B beating consensus of $16.9B, as IaaS of $4.9B (+84% Y/Y) came in well above the Street’s $4.7B estimate, a meaningful acceleration from 68% in FQ2 (AI infrastructure revenue grew 243% Y/Y).
The beat confirms Oracle’s capacity ramp is converting backlog into revenue at the pace needed to hit FY26 cloud growth targets, which should increase investor confidence.
Op. margins of 42.9% also came in ahead of consensus of 42.7%, showing Oracle can scale its AI infrastructure while maintaining profitability.
RPO grew to $553B, with management noting most incremental bookings ($29B contracts) were structured as customer-prepaid or BYOC arrangements requiring no additional Oracle financing (FY26 CapEx guide left unchanged at $50B).
Management also raised its FY27 revenue target to $90B (from $89B), implying ~34% Y/Y growth.”
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