Oracle Retains $320 Target as Cloud Infrastructure Revenue Surges Over 90%
ORCL•Mizuho maintained an Outperform rating and $320 price target on Oracle after fourth-quarter results, citing over 90% growth in cloud infrastructure revenue. Oracle forecasts $90 billion to $95 billion in fiscal 2027 capital expenditures, including about $70 billion in net cash outlays and $20 billion in additional financing needs.
1. Mizuho Upholds Outperform Rating
Mizuho reaffirmed an Outperform rating on Oracle with a $320 price target following the company’s fourth-quarter results. The firm highlighted more than 90% growth in cloud infrastructure revenue as new capacity came online and described the fiscal 2027 revenue guidance as conservative.
2. Heavy Investment and Financing Plans
Oracle projects $90 billion to $95 billion in gross capital expenditures for fiscal 2027, with approximately $70 billion in net cash outlays and an additional $20 billion in financing requirements. Investors are debating whether the strong cloud demand and prepayment model can offset the substantial spending and translate into sustained revenue and profit growth.
