Oracle’s stock surged nearly 12% on Tuesday, reaching a new high of $127.54, following the release of its fiscal third-quarter earnings report, which surpassed analysts’ expectations.
The previous peak of $126.71 was recorded on September 11, 2023. This upswing also marked the stock’s most substantial increase since December 10, 2021, when it surged by 15.6%.
According to LSEG, formerly known as Refinitiv, Oracle reported adjusted earnings per share of $1.41, outstripping analysts’ projections of $1.38 per share. However, the revenue of $13.28 billion fell slightly short of the estimated $13.3 billion.
Oracle’s cloud services and license support segment, its primary business, experienced a 12% increase in sales, reaching $9.96 billion, surpassing analysts’ expectations of $9.94 billion, as reported by StreetAccount.
Deutsche Bank raised its price target for Oracle shares to $150 from $135 on Tuesday, highlighting CEO Safra Catz’s reaffirmation of fiscal 2026 guidance and robust cloud infrastructure results.
The analysts, who maintained a buy rating on Oracle stock, emphasized that Oracle’s cloud infrastructure “is driving the equity narrative,” expressing heightened confidence in the demand outlook.
UBS analysts also raised their price target on Oracle shares to $150 from $130 while retaining a buy rating.
They cited encouragement from the turnaround in top-line performance, growth in OCI (Oracle Cloud Infrastructure), AI backlog figures, and the potential for significant benefits to the core database business in 2024/2025 from AI-driven cloud migration.
Bernstein Research analysts, who also maintain an equivalent buy rating on Oracle stock, increased their price target to $159 from $147.
They pointed to management remarks about supply outpacing demand and noted that the results “dispelled some of the growth concerns that had emerged over the past two quarters.”
