Oracle Corp. (NYSE: ORCL) is drawing heightened attention on Wall Street ahead of its fiscal first-quarter 2026 earnings report, with major banks issuing updated forecasts that reflect both optimism and caution.
The cloud software giant is expected to provide more details on a $30 billion contract unveiled in June, a deal analysts believe could reshape its growth trajectory.
Barclays sees strong upside from $30B contract
Barclays on Monday raised its price target on Oracle to $281 per share from $221, maintaining an overweight rating.
The new target implies nearly 18% upside from current levels.
Analyst Raimo Lenschow described the upcoming report as “very different versus other years,” citing the magnitude of the multiyear $30 billion contract disclosed in a late-June 8K filing.
Barclays expects Oracle to provide additional information on how the contract will affect Remaining Performance Obligations (RPO), noting that a deal of this size could “drive RPO up very meaningfully.”
Lenschow also pointed to potential capital expenditures needed to support delivery of the agreement.
The bank’s checks suggest Oracle could surpass consensus expectations, supported by customer interest in growth areas such as Oracle Cloud Infrastructure (OCI), Autonomous Database, and enterprise applications.
Analysts polled by LSEG forecast earnings of $1.48 per share on revenue of $15.04 billion, implying year-over-year earnings growth of more than 6% and revenue expansion of 13%.
Oracle shares have climbed more than 43% year-to-date, with the stock adding another 1.4% in premarket trading.
RBC stays cautious with sector perform rating
RBC Capital, meanwhile, reiterated its Sector Perform rating on Oracle, setting a $195 price target.
With Oracle’s market capitalization standing at $670 billion, RBC underscored that investor focus remains on the growth trajectory of OCI, which is expected to post growth in the low-50% range year-over-year.
Another key question for investors is how much of the $30 billion OpenAI-related contract represents incremental business rather than existing demand.
The firm also highlighted uncertainty around Oracle’s Stargate technology, with its financial contribution yet to be determined.
RBC anticipates that disclosures around large AI-related contracts and RPO growth will play a decisive role in market reaction to the results.
Its $195 price target implies a calendar year 2026 price-to-earnings multiple of 38x, down from the current 46.8x following Oracle’s sharp stock appreciation of over 70% in the past year.
Broader analyst landscape and expansion plans
Other firms are also weighing in ahead of Oracle’s results.
TD Cowen projects a 10% constant currency growth rate, citing resilient demand for OCI.
Morgan Stanley recently raised its target price to $246 with an Equalweight rating, while Global Equities Research set a more aggressive $400 target, arguing that Oracle occupies a pivotal role in the evolving technology ecosystem.
In parallel with analyst forecasts, Oracle is pursuing significant infrastructure expansion.
The company’s data centers in Wisconsin and Texas are slated to receive a $38 billion debt package arranged by JPMorgan Chase and Mitsubishi UFJ Financial Group.
Of that total, $23 billion is earmarked for the Texas campus, underscoring Oracle’s aggressive investment in cloud infrastructure to support anticipated demand.
As Oracle prepares to release its earnings after the market close on Tuesday, investors will be watching closely for clarity on the scope of its multibillion-dollar contract, the trajectory of its cloud business, and the timing of returns from its heavy capital investment program.
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