Oracle Corporation: 4Q26 Preview: balancing growth and DC buildout with financing needs; PO to $240

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Oracle Corporation: 4Q26 Preview: balancing growth and DC buildout with financing needs; PO to $240

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Oracle Corporation

4Q26 Preview: balancing growth and DC

buildout with financing needs; PO to $240

Reiterate Rating: BUY | PO: 240.00 USD | Price: 211.82 USD

Converting backlog into revenue; core strength to remain 09 June 2026

Oracle reports 4Q26 results after the close on Wednesday, June 10th. The stock is up Equity

+30% since 3Q26 earnings and +45% since our reinstatement of coverage in March,

primarily related to broader software strength and reduced funding overhang following

Key Changes~$50bn of recent debt and equity raises. Into the print, we expect the key areas of focus

to center on: (1) data center buildout and pace of revenue recognition, (2) capex and (US$) Previous Current

financing needs tied to DC buildout and (3) sustained strength in the core business. We Price Obj. 200.00 240.00

reiterate our Buy rating and raise our PO to $240 from $200, based on 26.5x our CY27E

P/E estimates vs 22x prior, as underlying demand trends remain robust across both Tal Liani

Research Analyst

cloud infrastructure and database workloads. BofAS

+1 646 855 5107

Cloud growth inflection and margins in focus tal.liani@bofa.com

Kevin Niederpruem

We remain focused on the trajectory of cloud revenue growth and expect Cloud Research Analyst

PaaS/IaaS to grow 94% YoY in 4Q26, accelerating from 84% in 3Q26, as incremental BofAS +1 646 855-1540

data center capacity comes online, allowing for RPO recognition. In addition, we see kevin.niederpruem@bofa.com

Cloud margins and new compute deal announcements as increasingly important areas of Eden Vacnich

focus as the Cloud segment becomes a larger portion of revenue, currently representing ResearchBofAS Analyst