Cantor Fitzgerald Reiterates Overweight on Oracle, $284 PT

Cantor Fitzgerald analyst Thomas Blakey reiterated an Overweight rating and $284 price target on Oracle (NYSE: ORCL).

“Oracle delivered a strong F1Q27, with total revenue growing 30% y/y to $19.3B, the first time F1Q revenue has grown sequentially off a F4Q print in company history, as cloud infrastructure revenue accelerated to +121% y/y.

Gross margin stepped down more than expected to ~61.0% on the ongoing data center ramp and mix shift toward infrastructure, but management continued to frame this as anticipated, pointing to maintaining-to-improving contractual margins and a 20% renewal/resale premium on capacity coming off contract as evidence of pricing power in a still supply-constrained environment.

Capex of $28.5B ran well ahead of street (Visible Alpha: $19.3B), though net cash outlay of $18.0B and the reaffirmed $90-95B FY27 capex / not-more-than-$70B net cash framework confirm Oracle continues to fund its build disproportionately with customer and supplier capital, further evidenced by the now-completed $20B ATM issuance.

RPO growth decelerated sharply to $26B q/q from $85B in F4Q26 on 850MW of delivered capacity, modestly below the ~1GW framing entering the print, while SaaS growth ticked up to 10% y/y cc but remained below street on continued NetSuite softness.

Multicloud database remained the standout growth vector at +353% y/y, and AI usage metrics across the applications suite continued to scale off a small base.

We view this print as broadly consistent with our thesis — durable infrastructure demand and underlying asset useful life and related strong pricing power against a backdrop of stable capital intensity — and continue to see attractive risk/reward in shares at current levels.

We reiterate our OW rating and $284 PT.”

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