Oppenheimer Raises Oracle (ORCL) to Outperform, Sees Strong Long-Term EPS Growth

Oracle Corporation (NYSE:ORCL) is included among the 14 Best GARP Stocks to Buy According to Analysts.

On February 25, Oppenheimer upgraded Oracle Corporation (NYSE:ORCL) to Outperform from Perform and set a price target of $185. The firm said the call may be early, as it will take time for Oracle to show financial results from its shift toward a more capital-intensive business model. Oppenheimer noted that the stock’s valuation multiples have fallen by more than half since September. At current levels, the firm sees a favorable risk and reward balance. It also said Oracle remains a strong EPS compounder and is positioned to benefit from AI as sentiment improves and risks become clearer.

On February 1, Oracle said it expects to raise $45 billion to $50 billion in 2026 to expand its cloud infrastructure capacity. The company, chaired by Larry Ellison, plans to use a mix of debt and equity financing to meet this goal. Oracle expects to raise about half of the funding through equity-linked and common equity issuances. This includes mandatory convertible preferred securities and a new at-the-market equity program worth up to $20 billion. The company plans to raise the remaining amount through senior unsecured bond offerings early in 2026.

Investors have closely followed Oracle’s AI infrastructure expansion in recent weeks. The company’s debt levels have increased, and its future growth is becoming more closely tied to OpenAI. OpenAI is not profitable and has not provided details on how it plans to fund its infrastructure expansion.

Oracle Corporation (NYSE:ORCL) provides integrated software applications and secure cloud infrastructure through Oracle Cloud. The company operates across three main segments: cloud and license, hardware, and services.