Oracle (ORCL) wrapped up one other headline quarter that lit up the tape in a giant method.
Following its vastly spectacular earnings print, Oracle inventory ripped 30%+ as buyers digested an AI-cloud story with actual enamel.
On the numbers, we noticed its gross sales rise 11% to $14.93 billion, with whole cloud gross sales hitting $7.2 billion (+27% year-over-year), and Oracle Cloud Infrastructure (OCI) jumped 54% to $3.3 billion.
Administration saved the foot on the gasoline with a +77% fiscal 12 months 2026 OCI development outlook ($18 billion), whereas flagging heavy-but-productive capex at $35 billion. Nevertheless, the headline numbers weren’t the story; the ahead setup was.
Enter Jefferies’ Brent Thill, who simply reset his Oracle value goal on a essential driver for Oracle’s long-term trajectory. For perspective, Thill is ranked #186 of 10,018 analysts by Tipranks, with a 66% success price and a greater than 14% common return.
His logic facilities round a gauge that, in his view, modifications the corporate’s trajectory from “solid” to “durably accelerating.
Jefferies’ Brent Thill lifts Oracle’s value goal to $360.
Picture supply: Cheng Xin/Getty Photographs
Oracle’s backlog growth drives Jefferies’ bullish name
Jefferies analyst Brent Thill reiterated his purchase score on Oracle inventory, whereas elevating his value goal to $360 from $270.
He frames the great Q1 setup as a backlog-driven development story, with its remaining efficiency obligations (RPO) stealing the present.
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The RPO determine at a whopping $455 billion blew previous expectations and topped the corporate’s hyperscaler competitors. For Thill, that quantity underscores the significance of Oracle’s AI and multicloud momentum.
For context, RPO is principally Oracle’s backlog of signed, binding contracts that it hasn’t acknowledged as gross sales but.
Furthermore, although Oracle left its fiscal 12 months 2026 near-term outlook unchanged, Thill sees long-term forecasts as principally conservative and primed for upward revisions.
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Moreover, a flurry of analysts, aside from Thill, additionally upped their value targets on Oracle post-earnings.
Analysts’ not too long ago elevated value targets for Oracle:
- UBS (Karl Keirstead): Worth goal raised to $360 from $280, purchase, on the again of the $317 billion backlog fueling 14x cloud growth to FY30. Additionally, the huge $100 billion OpenAI increase is a essential driver.
- Evercore ISI (Kirk Materne): Worth goal raised to $340 from $270, outperform with a sturdy backlog supporting faster income/revenue; additionally, the OCI spend strengthens AI place.
- Cantor Fitzgerald (Thomas Blakey): Worth goal raised to $400 from $271, obese. With RPO leaping 359% year-over-year, the contracts successfully increase cloud visibility.
Oracle CEO flags backlog topping half a trillion as cloud demand soars
Oracle CEO Safra Catz turned heads in the course of the Q1 earnings name after laying down a headline quantity on the desk.
“At the end of Q1, remaining performance obligations… [were] $455 billion. This is up 359% from last year and up $317 billion from the end of Q4.” She added, “RPO will likely grow to exceed $0.5 trillion.”
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Catz paired that backlog remark with an enormous multi-year OCI ramp.
“We now expect Oracle Cloud Infrastructure will grow 77% to $18 billion this fiscal year and then increase to $32 billion, $73 billion, $114 billion, and $144 billion over the following four years.”
Additionally, she flagged capex to be round $35 billion, stressing that it’s principally “revenue-generating equipment,” and added that with larger capability coming on-line, Oracle will effectively convert the huge RPO backlog into rising gross sales and income.
Co-founder Larry Ellison framed the demand facet, explaining that “AI is fundamentally transforming Oracle,” and “the AI inferencing market will be much, much larger than the AI training market.”
The implications are clear — with a half-trillion-scale backlog together with larger capability coming on-line, there’s a a lot clearer path from bookings to gross sales.
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