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Oracle stock (ORCL) jumped 14% on Thursday to touch an all-time high of $202.44 after the company's fiscal fourth quarter results topped Wall Street's expectations.
Oracle's adjusted revenue of $15.9 billion was ahead of the projected $15.6 billion, while its earnings per share of $1.70 surpassed the expected $1.64. The company raised its annual revenue forecast, as it expects strong demand for its AI cloud services.
"What is clear is that more customers will use the Oracle database to leverage AI," CEO Safra Ada Catz told analysts in a call after the market close Wednesday.
Catz said she expects the company’s fiscal year 2026 revenue to hit “at least $67 billion,” up from the prior guidance of $66 billion.
Synovus vice president Dan Morgan told Yahoo Finance that Oracle is seen as a safer AI stock relative to its peers amid Trump's trade war.
"They seem to be in a better position when we think of AI than, let's say, some of the chipmakers who are so reliant on manufacturing in China, in the Pacific Rim, who obviously would be devastatingly impacted by tariffs," Morgan said.
Following the results, analysts at JPMorgan, Jefferies, UBS, Deutsche Bank, and other investment firms raised their price targets on the stock to as high as $240 on Thursday.
“Overall, we continue to respect Oracle’s achievements in the AI arena while remaining mindful of valuation,” JPMorgan analyst Mark Murphy wrote in a note to investors Thursday morning.
In his own note, Jefferies analyst Brent Thill observed that Oracle trades at 32 times its projected calendar year 2026 earnings, while Microsoft (MSFT) has a 2026 forward price-to-earnings ratio of 29.
Thill has a Buy rating on Oracle stock and raised his price target on shares to $220 from $200. JPMorgan’s Murphy, who also raised his price target to $185 from $135, holds a Neutral rating on the stock.
Oracle's financial results had come in below expectations in the prior two quarters.
"It's been a long wait for people who own the stock because ... [Oracle] missed the last two quarters, both on the top and the bottom line, despite the fact that they were booking an enormous amount of business," Citizens head of technology equity research Pat Walravens said on Market Domination Overtime.
Oracle is set to invest $7 billion in the so-called Stargate AI project, according to Bloomberg, though the project has reportedly hit snags amid President Trump’s trade war.
“So the reality is that Stargate is still in formation,” Catz said.
The company’s capital expenditure forecast for its 2026 fiscal year of $25 billion was ahead of Wall Street’s estimate of $20 billion, and Catz said it “may turn out to be understated.”
