Oracle’s AI Cloud Push Meets Financing Scrutiny as Analysts Split on 2026 Outlook

Overview

• Evercore ISI reaffirmed an Outperform with a $275 target, citing multi‑year data‑center leases estimated at roughly $1.2 billion per month supporting about 7.6 GW of power and projecting up to $76 billion in potential annual GPU cloud revenue under its assumptions.
• RBC cut its price target to $195 with Sector Perform, while UBS kept Buy but lowered its target to $280, with UBS pointing to Abilene capacity ramps and a possible OpenAI sentiment rebound as key supports for a 2026 recovery path.
• Jim Cramer questioned Oracle’s business model yet said he no longer worries about OpenAI failing to pay, citing a CNBC report that SoftBank completed a $40 billion commitment to OpenAI that, if accurate, could ease funding concerns.
• Oracle’s FQ2 2026 results showed accelerating cloud momentum: total revenue up 13% to $16.1 billion, total cloud up 33% to $8 billion, OCI up 66%, and GPU‑related revenue up 177%.
• Oracle expanded its multicloud footprint in Canada by making Oracle Database available on Google Cloud in Montreal and Toronto to address data‑residency needs and integrate with Google’s analytics and AI tools.