Bank of America Resets $200 Oracle Price Target as Q3 Revenue Rises 22%
Bank of America reinstated Oracle with a Buy rating and $200 price target, implying 30% upside, citing $553 billion in AI infrastructure performance obligations. Oracle reported Q3 revenue up 22% year-over-year to $17.2 billion with cloud sales at 52%, but faces execution risks around backlog conversion and customer concentration.
1. Bank of America Reinstates Buy with $200 Target
Analyst Tal Liani reinstated coverage of Oracle with a Buy rating and a $200 price target, reflecting confidence in accelerating AI infrastructure demand. The target implies roughly 30% upside from current levels, based on $553 billion in remaining performance obligations tied to long-duration AI training and cloud infrastructure commitments.
2. Q3 Revenue Jumps 22% on Cloud Growth
Oracle delivered its strongest quarter in 15 years, with revenue rising 22% year-over-year to $17.2 billion and cloud revenue comprising 52% of total sales. The company’s multicloud database strategy—embedding Exadata hardware in competitor clouds—drove high margins and visibility, though high leverage, database franchise erosion and customer concentration raise execution risks.
3. Ellison Named to Presidential Tech Council
Founder Larry Ellison was tapped to join the presidential council on emerging technologies alongside CEOs from Meta, Nvidia, AMD and Google. The council will advise on AI policy, shaping regulations around jobs, productivity and long-term economic growth, potentially granting Oracle influence over future tech policy.