Cantor Fitzgerald Reiterates Overweight Rating on Oracle (March 11)

Cantor Fitzgerald analyst Thomas Blakey reiterated an Overweight rating and $229.00 price target on Oracle (NYSE: ORCL).

“Oracle delivered strong AI-driven momentum in F3Q26, with robust growth in AI infrastructure (+243%) and multicloud DBaaS revenue (+531%) alongside solid SaaS performance (+13% reported, +11% cc), which was explained as being possibly immune to the SaaS-pocalypse.

Management highlighted halo effects from AI infrastructure and sovereign cloud, driving broader enterprise engagement with its end-to-end solution set, better positioning the company versus SaaS-only app providers.

Given its diverse product set, Oracle appears to be taking a more disruptive approach to deploying AI agents across its applications and application suites, as well as aggressively utilizing coding tools internally to use smaller, more agile teams to deliver SaaS enhancements more quickly to customers, leveraging its data gravity associated with its AI platform and core DB services.

AI infrastructure margins exceeded expectations at 32%, supporting confidence in long-term profitability as scale improves in this important business line and core IaaS/OCI (excl CDBS) is now approaching 25% of total revenue and growing ~100% y/y, by our estimation.

We see Oracle’s vertically integrated stack (OCI, AI data platform, and applications) positioning the company to capture outsized AI-driven demand across its ecosystem of apps, DB, and infrastructure services, and driving sustainable profitable growth supporting our OW rating and our $229 PT.”

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