Oracle (ORCL) Stock; Climbs After Oppenheimer Upgrade to Outperform

TLDRs;

• Oracle shares rise after Oppenheimer upgrades rating and increases price target to $185.
• Investors focus on cloud expansion and potential cash flow from major clients.
• Funding plans include $45B–$50B via equity and bond offerings in 2026.
• Next earnings release on March 9 will be key for investor sentiment.

Oracle (NASDAQ: ORCL) stock edged higher late Wednesday following an upgrade from Oppenheimer, which moved the software giant to an Outperform rating and raised its price target to $185. Shares ended the regular trading session up 1.2% at $147.89, ticking slightly higher to $148.25 in after-hours trading. During the day, ORCL shares fluctuated between $147.35 and $153.26, with roughly 24.3 million shares exchanging hands.

Oppenheimer analyst Brian Schwartz highlighted that the recent selloff in Oracle stock had created a favorable risk/reward scenario. Calling the company a “strong EPS compounder,” Schwartz projected earnings could double by fiscal 2030, though he cautioned that execution remains key for the stock to sustain momentum.

Cloud Expansion Remains a Key Focus

Investors are now closely monitoring Oracle’s push into cloud infrastructure. The company’s growth strategy relies heavily on expanding its Oracle Cloud Infrastructure (OCI) services for major clients, including AMD, Meta, Nvidia, OpenAI, TikTok, and xAI. While cloud demand alone isn’t the entire story, the market is watching whether these clients can generate reliable cash flow fast enough to cover Oracle’s heavy investment commitments.

Oracle Corporation, ORCL

The next earnings release on March 9 is expected to provide crucial insights into the speed and scale of customer spending. Analysts believe that early indications of cash flow from cloud contracts will be a key driver for ORCL stock in the coming weeks.

Funding Plans and Capital Strategy

Oracle is undertaking an ambitious funding plan in 2026, targeting $45 billion to $50 billion in gross proceeds to support cloud infrastructure expansion. About half of the funding is expected to come from equity and equity-linked offerings, including a $20 billion at-the-market program, allowing gradual share sales. The remaining capital will be raised through an investment-grade bond issuance.

Earlier this month, the company closed a $25 billion notes sale and completed the sale of 100 million depositary shares tied to 6.5% mandatory convertible preferred stock. These moves aim to support general corporate needs, capital expenditures, and debt repayment while giving Oracle flexibility to scale its cloud operations.

Margin for Error Remains Narrow

Despite the optimism, Oracle faces potential risks that could affect its stock trajectory. Delays in cloud buildouts, hesitancy from major clients, or higher financing costs could pressure the balance sheet and erode investor confidence. Market watchers note that Oracle’s ability to convert contracted cloud demand into consistent revenue will be pivotal in maintaining the current momentum.

Traders also noted that ORCL stock has shown volatility recently, falling 4.6% earlier in the week before rebounding. The combination of strategic funding initiatives, cloud expansion, and investor sentiment around execution will likely shape the stock’s near-term performance.

Oracle’s next earnings report on March 9 will be a litmus test for whether the company can turn ambitious cloud growth plans into tangible financial results. Investors will be keenly watching for updates on revenue from key clients, the speed of cash flow realization, and the overall health of the company’s balance sheet.

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