Oracle's (ORCL) investor day is expected to provide further visibility on Oracle Cloud Infrastructure's capacity ramp and margin trajectory, along with clearer performance expectations for the applications business, RBC Capital Markets said.

Investors will look for timelines for AI infrastructure gross margins to stabilize within the guided 30% to 40% range, with execution risks underscored by the recent Project Jupiter Force Majeure notice, the investment firm said in a research note Wednesday.

RBC will look for a clear path to sustained double-digit SaaS growth via embedded AI and agentic applications. Key investor questions include whether agentic AI tooling is compressing deployment timelines and expanding the on-premises migration funnel, as well as the monetization pathway for Fusion Agentic Applications and the AI Agent Studio.

The brokerage is also watching for updates to Oracle's long-term financial targets, including its fiscal 2030 revenue target of $225 billion and earnings per share target of $21, as well as a clearer path toward improved free cash flow conversion amid elevated capital expenditures.

RBC maintained its sector perform rating and $165 price target.

Oracle's shares were down 1.4% in early Thursday trading.

Price: 127.38, Change: -1.75, Percent Change: -1.36