Cantor Fitzgerald Reiterates Overweight Rating on Oracle

Cantor Fitzgerald analyst Thomas Blakey reiterated an Overweight rating and $284.00 price target on Oracle (NYSE: ORCL).

“Oracle delivered a record F4Q26, with CPU/GPU infrastructure revenue growing 119% y/y to $4.8B, IaaS revenue growing 93% y/y to $5.8B, and multicloud DBaaS revenue growing 404% y/y, as Oracle continues to benefit from its unique vertically integrated stack spanning OCI, multicloud database services, and enterprise applications.

RPO of $638B (+$85B q/q) provides strong revenue visibility and reflects Oracle’s differentiated position as a supply-constrained AI infrastructure provider with long-term contractual customer commitments.

Operating leverage remained the key profitability story, with non-GAAP EBIT of $8.6B at 44.8% margin, beating consensus by 140bps as operating cost efficiencies more than offset ongoing gross margin pressure from the IaaS build-out.

While capex of $16.5B came in above street (Visible Alpha) consensus at 86% of revenue, management framed F27/F28 as peak capex years in dollar terms, after which infrastructure gross margins are expected to step up toward the 30-40% profile outlined at Oracle’s 2025 Analyst Day as data centers reach full contractual revenue utilization.

We continue to see Oracle’s vertically integrated stack positioning the company to translate its record RPO into durable, profitable growth across its infrastructure, database, and applications franchises, supporting our OW rating and $284 PT.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.