KeyBanc and Mizuho raise ORCL price targets after 90% year-over-year IaaS revenue growth and $90B-$95B capex plan.
Oracle’s Infrastructure as a Service revenue surged over 90% year-over-year in the fourth quarter, driven by the launch of its Abilene supercluster and expanded capacity. The company announced fiscal 2027 gross capital expenditures of $90 billion to $95 billion, with cash outlays around $70 billion, while incremental financing needs dropped to $20 billion from earlier estimates.
KeyBanc maintained its Overweight rating and $300 price target, raising EPS estimates for fiscal 2028-2030 above consensus. Mizuho reaffirmed its Outperform rating and $320 price target, citing solid quarterly performance and AI hyperscaler investments offsetting gross margin pressures.
Oracle’s capex plan fell below Street expectations of $100 billion, easing concerns over financing demands. The company’s AI cloud expansion remains a key growth driver, with analysts highlighting operational efficiency amid rising infrastructure costs.