Goldman Sachs upgrades Oracle to Buy with $410 target following "historic" Q1 performance.

Goldman Sachs upgraded Oracle (ORCL) to Buy, raising the price target to $410 from $240, citing stronger-than-expected bookings and steady gains in cloud database adoption. The analyst believes Oracle is entering a stronger growth phase, driven by its AI-driven strategy. The upgrade is based on Oracle's historic Q1 performance, with accelerating demand for its cloud services and steady gains in cloud database adoption.

Oracle (ORCL) shares retreated on Thursday after a record AI-driven surge in the previous session that brought the company closer to the trillion-dollar mark. The enterprise software maker's remarkable rise, fueled by a wave of multi-billion-dollar cloud deals, puts the spotlight on the scramble for computing power from companies that are pouring billions to become leaders in the AI race Oracle retreats after record run toward $1 trillion club on AI cloud boom^[1].

Oracle's shares fell nearly 5% after climbing as much as 35.9% on Wednesday. The company's market valuation rose to a record $933 billion, as of last close, but is set to fall to around $890 billion if losses hold. Ellison's net worth was at around $387.6 billion, largely driven by his 41% stake in Oracle, compared with Tesla (TSLA.O) CEO Elon Musk's $437.5 billion fortune that still tops Forbes' global wealth rankings Oracle retreats after record run toward $1 trillion club on AI cloud boom^[1].

Goldman Sachs upgraded Oracle to Buy, raising the price target to $410 from $240, citing stronger-than-expected bookings and steady gains in cloud database adoption. The analyst believes Oracle is entering a stronger growth phase, driven by its AI-driven strategy. The upgrade is based on Oracle's historic Q1 performance, with accelerating demand for its cloud services and steady gains in cloud database adoption Goldman Sachs, T. Rowe Price to offer alternative investments for wealthy clients by 2025-end^[3].

Oracle Corp (ORCL) reported a significant increase in remaining performance obligations (RPO), reaching $455 billion, up 359% from the previous year. Total cloud revenue grew by 27% to $7.2 billion, with cloud infrastructure revenue increasing by 54% to $3.3 billion. Oracle Corp (ORCL) has become a key player in AI workloads, securing major contracts with companies like OpenAI, Meta, NVIDIA, and AMD Oracle Corp (ORCL) Q1 2026 Earnings Call Highlights: Cloud Growth and AI Strategy Propel Strong Performance^[2].

The company's cloud database services saw a 32% increase, with autonomous database revenue up 43%. Oracle Corp (ORCL) is aggressively pursuing the AI inferencing market, leveraging its position as the largest custodian of high-value private enterprise data. The Oracle AI database allows enterprises to securely vectorize and use their data with advanced AI models, driving significant demand as enterprises seek to leverage AI for decision-making Oracle Corp (ORCL) Q1 2026 Earnings Call Highlights: Cloud Growth and AI Strategy Propel Strong Performance^[2].

Oracle's dual role as an infrastructure and application company provides substantial advantages. Oracle's ability to generate applications using AI and offer comprehensive suites that integrate seamlessly gives it a competitive edge. This approach simplifies consumption for customers and enhances Oracle's position in the market Oracle Corp (ORCL) Q1 2026 Earnings Call Highlights: Cloud Growth and AI Strategy Propel Strong Performance^[2].