ORCL
Oracle’s cloud glow-up
Oracle is heading into its fiscal Q4 with a fresh Wall Street pat on the back. BofA Securities kept its Buy rating on ORCL and raised the price target to $240, arguing that new data center capacity is finally giving Oracle more room to recognize revenue from its backlog.
The big number everyone’s staring at
Analyst Tal Liani expects Oracle’s Cloud PaaS/IaaS revenue to jump 94% year over year in the quarter, up from 84% the prior quarter. In other words: the cloud engine isn’t just humming — it’s apparently flooring it.
A few things the note says investors should keep an eye on:
- Cloud margins, which BofA expects to stay around 70%
- New compute deal announcements, which could show demand is still outrunning supply
- Capex, because Oracle is still pouring money into data centers like it found a bottomless Lego set
Why the stock cares
Oracle’s cloud segment now makes up 52% of total revenue, up from 44% a year ago. That’s a big shift for a company that used to feel more like a sleepy database giant than an AI-adjacent infrastructure story.
The catch? This whole bull case depends on Oracle continuing to build out capacity fast enough to meet demand. If the company keeps converting backlog into revenue, the market may keep rewarding it. If not, the hype train hits a red light.
Big picture: Oracle is turning into a cloud-heavy story in real time, and Wall Street is basically saying, “show us the next lap.”