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2h ago

Analysts Back Oracle’s AI Pivot as $455 Billion Backlog Takes Center Stage

Deutsche Bank’s $375 price target hinges on OpenAI-driven demand reflected in Oracle’s reported backlog.

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Wells Fargo just handed Oracle a $280 target and flagged nearly $500 billion in AI deals

Overview

  • Oracle reported a $455 billion cloud and AI backlog, up 359% year over year, which analysts link to surging inferencing demand.
  • The company spent $8.5 billion on capital expenditures last quarter and projects about $35 billion for FY26, with revenue guidance near $67 billion and free cash flow around $1.4 billion.
  • Deutsche Bank reiterated a Buy rating on December 1 and said the OpenAI-related backlog validates Oracle’s ability to deploy AI infrastructure at scale.
  • Coverage flags near-term risks including elevated valuation multiples and a recently weak quarter versus peers, highlighting uncertainty around backlog conversion and execution.
  • Forbes outlines scenarios that anticipate OCI growth of more than 70% in FY26 and a potential 30% stock rally, while cautioning on debt exposure and historical drawdowns.