Oracle’s stock rose over 12% to a record high of $127.54 on Tuesday after exceeding analyst forecasts for fiscal third-quarter profits.
The previous high, $126.71, was established on September 11, 2023. The rise also represented the stock’s largest gain since December 10, 2021, when it closed up 15.6%.
Oracle posted adjusted earnings per share of $1.41, which above analysts’ expectations of $1.38 per share, according to LSEG, formerly known as Refinitiv. Analysts predicted $13.3 billion in revenue, but it came in slightly below.
The company’s cloud services and license support sector, its largest unit, showed a 12% gain in sales to $9.96 billion, exceeding analysts’ expectations of $9.94 billion, StreetAccount said.
Deutsche Bank raised its price estimate for Oracle shares from $135 to $150 on Tuesday, citing CEO Safra Catz’s fiscal 2026 outlook and excellent cloud infrastructure results.
The analysts, who maintain a buy rating on Oracle stock, stated that Oracle’s cloud infrastructure “is driving the equity narrative” and that they are “more confident than ever in the demand picture.”
UBS analysts raised Oracle’s price target to $150 from $130 while maintaining a buy rating, writing that they are “encouraged by the top-line turnaround, OCI growth, AI backlog numbers, and the prospect that the big core database business might benefit in 2024/2025 from an AI-driven cloud migration lift.”
Bernstein Research analysts, who have a buy recommendation on Oracle shares, raised their price objective from $147 to $159. They referenced management comments regarding supply continuing to surpass demand and stated that the results “dispelled some of the growth concerns that had crept up over the past two quarters.”
— CNBC’s Kif Leswing and Jordan Novet contributed to this article.
