Guggenheim raised its price target on Oracle Corp. (NYSE: ORCL) to $400 from $375 while maintaining a Buy rating, citing optimism following the company’s 2025 Financial Analyst Day.
The firm said Oracle outlined an ambitious five-year plan with total revenue expected to grow at a 31% compound annual rate to $225 billion by fiscal 2030, driven by accelerating AI infrastructure demand. Oracle also projected earnings per share to grow at a 28% CAGR over the same period to $21.
The analyst noted that Oracle provided detailed growth and margin breakdowns across its IaaS businesses — including Enterprise, Distributed Cloud, Cloud Native, and AI Infrastructure — emphasizing that AI-related contracts generate 30%–40% gross margins over their lifespan, higher than previously anticipated.
While Oracle did not disclose specifics on capital expenditure financing, Guggenheim said profitability would likely remain consistent regardless of whether the company uses debt, vendor financing, or equity issuance.
The note described Oracle as undergoing a “generational transformation,” with decades of innovation — including its Real Application Clusters (RAC) technology — positioning it as a leader in AI training workloads. The firm reiterated Oracle as its “Best Idea” among Buy-rated stocks.
