Report published September 10, 2026
Oracle Corporation (ORCL): AI Bends the Growth Curve Higher – UBS Research Report
UBS · September 10, 2026
UBS reiterates a Buy rating on Oracle Corporation and raises its 12-month price target from $245 to $250 following 1Q results that demonstrated significant AI-driven revenue acceleration to 30% y/y. Strong cloud infrastructure momentum, tight opex control, and completion of a $20b financing offset gross margin compression and an unraised FY27 revenue target.
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Finvaulta summarizes UBS's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Key Takeaways
- 1.Oracle delivered a strong 1Q beat across revenue and EPS, driven by AI infrastructure acceleration, with overall revenue growth accelerating to 30% from 11% a year ago.
- 2.Management guided for continued cloud infrastructure acceleration throughout FY27 from 120% c/c in 1Q, alongside 20%+ GPU pricing uplift on renewals/resales.
- 3.CapEx guidance for FY27 was reaffirmed at $90-95b, with dollar CapEx expected to peak in FY27 or FY28, while the completion of a $20b ATM/secondary equity offering reduces CY financing risks.
Table of Contents
- Summary
- Key Positives
- Key Negatives
- Valuation:
- Trading data and key metrics
- EPS (UBS, diluted) (USD)
- Forecast returns
- Company Description
- Valuation Method and Risk Statement
- Quantitative Research Review
Report data
Highlights (US$m) — as of September 10, 2026.
| Metric | Estimate | Context |
|---|---|---|
| 12-Month Price Target | 250.00 USD | Raised from prior price target of $245.00. |
| Share Price | 152.94 USD | Market close price on report date. |
| FY27 CapEx Guidance | 90-95 USD billions | Management reaffirmed capital expenditure expectations, peaking in FY27 or FY28. |
| Capacity Added | 850 MW | Added capacity in the quarter fell slightly short of the ~1 GW target but represented a large ramp. |
| Gross Margin | 61% | Gross margins dropped almost 800 bps y/y and were slightly below UBS's 62% estimate. |
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