Oracle’s fair value estimate has recently risen modestly, increasing from $333.49 to $344.07 per share. This change reflects growing optimism about the company’s prospects. The adjustment comes as revenue growth projections strengthen and the discount rate declines slightly, highlighting shifting sentiment among analysts. Stay tuned to discover how investors and observers can continue to follow these evolving views and keep pace with Oracle’s changing narrative.

Recent analyst commentary reveals a dynamic range of opinion on Oracle’s future, shaped by shifting growth expectations and AI-driven momentum. The majority of coverage leans bullish, but contrarian voices caution about potential risks and valuation.

🐂 Bullish Takeaways

  • Numerous firms, including Scotiabank, BofA, Mizuho, Jefferies, Bernstein, and TD Cowen, have raised Oracle’s price targets, many now at or above $350 per share. These actions reflect increased confidence in Oracle’s cloud and AI infrastructure growth, underpinned by strong recent order bookings and an expanding performance obligations backlog.

  • Patrick Colville at Scotiabank names Oracle as the firm’s “Top Offensive Play” in the software sector, citing strong execution and maintaining an Outperform rating with a $360 price target.

  • BofA and Baird both highlight Oracle’s well-established position to capture further share of the growing AI infrastructure market, pointing to management’s impressive long-term revenue and earnings targets. BofA remains Buy-rated with a $368 price target.

  • Stifel and Mizuho observe that customer demand is currently running ahead of Oracle’s supply, with gross margins expected to improve as scale increases. Both retain bullish ratings and see Oracle as a key AI infrastructure winner.

  • Multiple analysts credit Oracle’s substantial growth in remaining performance obligations (RPO), cited as surpassing $500B, which is viewed as a signal of durable revenue growth and underlying business momentum.

  • Several firms, including Citi and Cantor Fitzgerald, have upgraded Oracle or set price targets above $400 following record bookings and improved profitability guidance, noting increased confidence in management’s ability to execute.

  • Positive attention is drawn to Oracle’s leadership transition, particularly from William Blair, which sees the company’s new co-CEOs as reinforcing its strategic focus on AI and providing a favorable setup for continued share gains.

🐻 Bearish Takeaways

  • Rothschild & Co Redburn initiated coverage on Oracle with a Sell rating and a $175 price target, warning that the market may be materially overestimating the long-term value of contracted cloud revenues. The analyst suggests Oracle’s role in large-scale deployments is more akin to a financier than a cloud provider, raising skepticism about sustainable economics.

  • Jefferies, while maintaining a Buy, points to concerns related to Oracle’s return to a co-CEO structure, which has historically led to underperformance at some technology peers. They highlight leadership clarity and execution risk as areas to monitor, despite raising the price target to $360.

  • Some analysts, including those at Morgan Stanley, continue to flag valuation risks, suggesting that much of the anticipated growth may already be priced in at current levels, especially in light of margin pressures and the need for rapid expansion of data center capacity.

Story Continues

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!

NYSE:ORCL Community Fair Values as at Oct 2025 NYSE:ORCL Community Fair Values as at Oct 2025

  • Oracle’s new co-CEOs have publicly defended the company’s aggressive investments in data centers. They highlight these facilities as essential for powering advanced AI workloads and delivering comprehensive services to business clients.

  • The company has announced plans to deploy 50,000 AMD AI chips beginning in 2026. This move broadens Oracle’s AI infrastructure options and positions AMD GPUs as a competitor to Nvidia within the booming artificial intelligence market.

  • Oracle is set to benefit from U.S. approvals of several billion dollars’ worth of Nvidia chip exports to American firms in the United Arab Emirates, supporting the expansion of AI projects across the Gulf region.

  • Internal company documents have surfaced, showing that Oracle’s rapidly growing AI cloud business currently operates on thin profit margins. This raises industry questions about the long-term profitability of renting out high-demand AI computing resources.

  • The company is actively investigating a string of cyberattacks targeting its E-Business Suite applications, following the discovery of an extortion campaign exploiting known, previously patched vulnerabilities.

  • The Fair Value Estimate has risen modestly, increasing from $333.49 to $344.07 per share.

  • The Discount Rate has declined slightly from 8.82% to 8.80%.

  • Revenue Growth projections have increased from 29.94% to 32.57%.

  • Net Profit Margin estimates have fallen notably, moving from 24.40% to 20.25%.

  • The future Price-to-Earnings (P/E) ratio has increased from 41.67x to 47.43x.

On Simply Wall St, a Narrative is your way to connect Oracle’s story with the numbers that drive its fair value. Narratives make investing simpler by linking a company’s outlook, your forecast of revenue and profits, and today’s share price into one dynamic, easy-to-follow view. Updated whenever new developments emerge, Narratives empower you to spot opportunities to buy or sell, right from the Community page where millions invest smarter together.

Check out the original Oracle Narrative: Enterprise AI And Cloud Migration Will Unlock Digital Transformation to stay in sync with where the story and fair value are heading:

  • Get timely perspective on Oracle’s AI-fueled growth, from surging enterprise adoption to sustained revenue momentum.

  • See how ongoing cloud customer migration, product innovation, and efficiency gains are reshaping margins and business stability.

  • Understand the key risks, including tech disruption and competition, and how they may impact Oracle’s long-term value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ORCL.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com