Database software and cloud infrastructure company Oracle (ORCL) missed the Street’s expectations for the first quarter of Fiscal 2026. Nonetheless, ORCL stock rallied about 29% in Wednesday’s pre-market trading, as CEO Safra Catz stated that she expects the company’s remaining performance obligations (RPO), a measure that indicates contracted revenue, to exceed half a trillion dollars based on potential multi-billion-dollar contracts with customers over the next few months. Several top Wall Street analysts cheered this bullish outlook and boosted their price targets.
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In Q1 FY26, Oracle’s RPO surged 359% year-over-year to $455 billion, as the company signed four multi-billion-dollar contracts with three different customers. CEO Catz stated that the demand for Oracle Cloud Infrastructure (OCI) continues to build. She added that the extent of the company’s recent RPO growth would drive an upward revision to the cloud infrastructure part of the company’s financial outlook.
Top Analysts Boost ORCL Stock Price Target on Robust Outlook
Following the Q1 FY26 print, UBS analyst Karl Keirstead increased the price target for Oracle stock to $360 from $280 and reiterated a Buy rating. The 5-star analyst noted that the major highlight of the quarter is the incremental backlog of $317 billion (sequential rise), which fuels the growth outlook for Oracle’s cloud infrastructure segment by 14 times over the next five years, from $10 billion in FY25 to $144 billion in FY30.
Keirstead added that while Oracle didn’t disclose its customers, he is assuming that the largest boost is from ChatGPT maker OpenAI (more than $100 billion), alongside social media platforms xAI and Meta Platforms (META). The analyst noted that the growing customer diversity lowers ORCL stock’s risk profile, although concentration with OpenAI will still be high. Keirstead was also impressed with ORCL’s FY26 mid-teens operating income growth outlook, which reflects tight operating expenses and headcount control.
Likewise, Jefferies analyst Brent Thill reaffirmed a Buy rating on Oracle stock and boosted his price target to $360 from $270, saying that “RPO stole the show.” The 5-star analyst stated that Q1 FY26 RPO reached $455 billion, crushing expectations and surpassing other hyperscalers, thereby reinforcing confidence in the company’s acceleration narrative. Thill noted that the FY26 outlook was left unchanged, but long-term forecasts appear conservative and are likely to be revised upward at the analyst day.
“We see room for the stock to grind even higher as optimism builds around the outlook, especially if backlog growth begins to convert into rev accel [acceleration],” said Thill.
Is Oracle a Good Stock to Buy?
Currently, Wall Street has a Moderate Buy consensus rating on Oracle stock based on 23 Buys and 11 Holds. The average ORCL stock price target of $258.07 indicates about 7% upside potential from current levels.
These ratings/price targets are expected to be revised as more analysts react to Oracle’s stellar outlook.
