Oracle’s AI Surge Triggers Wall Street Upgrade And Price Target Hikes

Oracle Corp.(ORCL) has drawn confidence from major Wall Street firms following a standout first-quarter (Q1) fiscal 2026 performance that signaled its growing dominance in the artificial intelligence infrastructure market.

The company’s Q1 revenue of $14.93 billion and adjusted earnings per share (EPS) of $1.47 both surpassed the analysts’ consensus estimate of $15.04 billion and $1.48, respectively, according to Fiscal AI data. 

BofA upgraded the stock to a ‘Buy’ rating, lifting their price target to $368 from $295, citing an “exceptional” jump in remaining performance obligations (RPO) and backlog growth. 

The firm pointed to Oracle’s expanding presence in the AI infrastructure landscape, noting its rising appeal among major AI players, including OpenAI, Meta Platforms Inc. (META), Nvidia Corp.(NVDA), Advanced Micro Devices Inc.(AMD), and xAI. 

Oracle stock traded over 31% higher in Wednesday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory while message volume improved to ‘extremely high’ from ‘high’ levels in 24 hours. 

The stock experienced a 2,079% increase in user message count over 24 hours. 

Piper Sandler echoed the bullish sentiment, boosting its price target to $330 from $270 while maintaining an ‘Overweight’ rating. The firm emphasized the company’s ongoing transformation from a legacy software vendor into a dominant force in AI infrastructure. 

The $317 billion surge in contracted backlog over just one quarter, bringing total RPO to $455 billion, reflected the magnitude of demand, Piper Sandler said.

Stifel took a positive stance as well, raising its target to $350 from $250 while reaffirming a ‘Buy’ rating. Analysts described the recent quarterly report as too strong to be summarized merely as a "blow-out." Oracle’s management also increased its capital expenditure forecast for fiscal 2026 to around $35 billion, a move driven by continued confidence in future backlog growth, the firm noted.

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