Oracle Raises Fiscal 2027 Forecast to $90B After RPO Jumps 325%
Scotiabank cut its Oracle price objective to $215 from $220 and maintained an Outperform rating while highlighting its tidy fourth-place AI cloud position. Oracle’s RPO rose 325% to $553 billion, driving a fiscal 2027 revenue forecast increase to $90 billion and third-quarter cloud revenue growth of 44%.
1. Analyst Price Objective Adjustment
On March 9 Scotiabank lowered its price objective on Oracle to $215 from $220, while retaining an Outperform rating and citing the company's tidy fourth-place position in the AI-accelerated cloud market and the insulation of its traditional businesses from competitive pressures.
2. AI-Driven RPO Growth
Oracle’s remaining performance obligations climbed 325% year over year to $553 billion, surpassing the $540.37 billion estimate, with most of the increase tied to large-scale AI contracts that are expected to generate future revenue streams without requiring additional funding.
3. Fiscal 2027 Revenue Outlook Raised
The company raised its fiscal 2027 revenue forecast to $90 billion, ahead of prior analyst expectations near $86.6 billion, reflecting confidence in sustained demand for AI data center infrastructure and cloud services.
4. Third-Quarter Earnings and Cloud Growth
In the third quarter, Oracle reported revenue of $17.19 billion and a 21% increase in adjusted EPS to $1.79, with cloud revenue surging 44% and the company projecting fourth-quarter revenue growth of 18%–20% with cloud revenue up 44%–48%.