Mizuho Lowers Oracle Price Target to $320

Mizuho analyst Siti Panigrahi lowered the price target on Oracle (NYSE: ORCL) to $320.00 (from $400.00) while maintaining an Outperform rating.

“Oracle delivered a clean FQ3, exceeding expectations across the board and raising FY27 revenue target to $90B, above consensus.

More importantly, this quarter addressed two key bear concerns from last quarter: 1) the financing overhang, and 2) whether the DC capacity ramp could convert its growing backlog into revenue at scale.

Management disclosed that $29B of new contracts were structured as BYOH or customer-prepaid arrangements requiring no incremental Oracle financing.

At the same time, the new $90B FY27 revenue target (above Street at $88B) signals confidence on ORCL’s ability to deploy capacity and convert demand.

Near-term visibility also improved with cRPO of $66B (+64% Y/Y, +$14B Q/Q).

With AI infrastructure revenue growing 243% Y/Y and SaaS accelerating to 13%, Oracle remains one of the clearest AI beneficiaries in large-cap software.

We update our model post FQ3, reiterate OP but lower PT to $320 (from $400) to reflect peer multiple contraction.”

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