Oracle (ORCL) reported an 11% growth acceleration in fiscal Q4, with 8% license growth, when a tough macro environment dented the results of other software companies, UBS said in a Thursday note.
The company's new fiscal 2026 outlook for 100% backlog growth to more than $275 billion is "extraordinary" and implies more backlog dollar growth than Microsoft (MSFT) is expected to report, analysts Karl Keirstead and Radi Sultan said.
"This is especially true if, as Oracle says, the backlog guide includes only a modest "Stargate" lift and that it doesn't need Stargate to hit the 100% backlog growth target," the analysts said.
Additionally, the analysts said that although fiscal 2026 capital expenditure outlook of over $25 billion is "aggressive," it can be "tolerated" due to the growth acceleration.
UBS raised Oracle's price target to $225 from $200 with a buy rating.
Oracle shares were up 13% in recent Thursday trading.
Price: 200.93, Change: +24.55, Percent Change: +13.92
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.