Oppenheimer Reiterates Outperform Rating on Oracle
Oppenheimer analyst Brian Schwartz reiterated an Outperform rating and $275.00 price target on Oracle (NYSE: ORCL).
“We maintain our Outperform rating after Oracle reported the second-highest bookings quarter and above-consensus F4Q26 top- and bottom-line results.
Additionally, operating margin grew y/y for the first time in five quarters which suggests Oracle can grow profit margins by offsetting AI-driven gross margin compression with less Opex.
However, F4Q26 Cloud revenue missed Street estimate and F4Q26 Capex is 40% above consensus estimate. Further, Oracle’s 2HFY26 Capex and net income are essentially equal.
The Capex results and guidance leave tough optics and lend support to bear concerns about poor returns as Oracle transforms into a capital intensive business.
However, Oracle also generated $1.375 in CRPO for every $1 of Capex in FY26, which in our view, justifies the higher Capex and supports achieving the medium-term financial guidance.”
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