Oppenheimer Upgrades Oracle to Outperform with $185 Price Target
Oppenheimer has upgraded Oracle Corporation (NYSE: ORCL) from a “Perform” rating to “Outperform,” assigning a new price target of $185. The upgrade, issued on Wednesday, February 25, 2026, signals increased confidence from the firm in Oracle’s market potential and comes after a notable pullback in the stock’s price.
Why the Rating Changed
Oppenheimer’s decision to upgrade Oracle appears driven by several key factors drawn from recent coverage of the rating change:
- Improved Risk-Reward After Selloff: According to reporting on the upgrade, Oppenheimer sees an improved risk-reward profile for Oracle following a recent selloff in the stock. The analyst views the pullback as having created an attractive entry point, with the $185 price target reflecting meaningful upside potential from current levels.
- Underowned Stock Drawing Attention: News coverage of the upgrade highlighted that Oracle is considered an “underowned” stock, suggesting that institutional positioning has not yet caught up with the company’s fundamentals and growth trajectory. This underweight positioning could serve as a catalyst if sentiment improves.
- AI Spending Backdrop: While the analyst acknowledged ongoing concerns around AI-related spending, Oppenheimer evidently concluded that Oracle’s positioning in the broader AI infrastructure and cloud ecosystem provides sufficient upside to warrant the upgrade despite those headwinds. The broader market context — including rising U.S. equity indexes and an easing of the so-called “AI-scare trade” ahead of Nvidia’s earnings — may also support a more constructive view on companies tied to AI infrastructure.
- Cloud and Enterprise Momentum: The upgrade also comes amid a period of significant activity in the AI and cloud space, with major technology companies including Amazon, Google, Meta, and Microsoft engaging with the White House on power-cost commitments related to data center expansion — a trend that directly benefits Oracle’s cloud infrastructure business.
Oracle’s Dividend Profile
For income-focused investors, Oracle currently pays an annual dividend of $2.00 per share, which represents a dividend yield of approximately 1.37% at recent prices. The most recent ex-dividend date was January 8, 2026.
While Oracle’s yield is modest compared to traditional dividend stalwarts, the company’s consistent dividend payments complement the growth thesis outlined by Oppenheimer. Investors considering the stock at these levels would be looking at a combination of capital appreciation potential — implied by the $185 price target — and steady, if not headline-grabbing, income from the dividend.
What This Means for Investors
Oppenheimer’s upgrade adds to the bull case for Oracle at a time when the stock has pulled back from recent highs. The firm’s $185 target provides a clear benchmark for the upside it sees, and the characterization of ORCL as “underowned” suggests there may be room for broader institutional buying if the company continues to execute on its cloud and AI strategy. Investors should monitor Oracle’s upcoming earnings reports and any developments in enterprise AI spending trends for further catalysts.
Disclaimer: This blog post is for informational purposes only and does not constitute financial advice, a recommendation, or a solicitation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.