Barclays Raises $ORCL Price Target to $252 After Strong Q1 Growth

Barclays raised its price target on $ORCL to $252 from $250, keeping an Overweight rating, after the company's fiscal Q1 results. The stock is currently trading around $154, down 54% from all-time highs despite a $465 billion market cap and 335% dividend-adjusted returns over the past decade.
Oracle posted total revenue of $19.3 billion, up 30% year over year, marking the first time Q1 revenue grew sequentially. Cloud infrastructure revenue jumped 121% to $7.4 billion, non-GAAP operating income rose 31% to $8.2 billion, and non-GAAP EPS came in at $1.92, up 30%. Remaining performance obligations grew by $26 billion during the quarter, with most of the new backlog funded through prepayments or customer-provided hardware rather than additional Oracle spending.
Co-CEO Clay Magouyrk said delays at data center sites in New Mexico and Wisconsin "will have any impact into our previously stated FY 2027 revenue or earnings guidance," calling the sites part of a phased rollout. Oracle raised full-year revenue guidance to at least $90 billion, up 34% year over year, and lifted non-GAAP EPS guidance to $8.10, while guiding for 30-34% revenue growth and 65-71% cloud growth in Q2.
Oracle's debt has climbed to $155.9 billion on a trailing-twelve-month basis, up from $90.5 billion two years ago, with negative free cash flow of $28.7 billion driven by $75.7 billion in capital expenditures. Cash from operations hit a record $46.9 billion over the trailing twelve months, and full-year CapEx is expected between $90 billion and $95 billion.