BMO Capital Markets has upgraded Oracle from Market Perform to Outperform, raising its price target to $235. This marks a notable shift in sentiment, driven largely by Oracle’s strong recent earnings and its ambitious projections for cloud infrastructure growth.
The upgrade centers on the view that Oracle is transitioning from legacy strength to a growth-centric cloud model with real momentum. BMO points to Oracle’s forecast of 70% cloud infrastructure growth in fiscal year 2026 as a core reason for the revision. Despite elevated spending in R&D and sales to support expansion, earnings continue to grow, a key indicator of operational efficiency and sustainable profitability.
Oracle has also shown improving margins and deeper integration across its enterprise software and cloud services, creating a stickier ecosystem for clients. BMO believes the market has yet to fully account for this growth trajectory, especially as Oracle plays catch-up in a booming AI and cloud-driven environment.
🔹 Dividend Overview:
🪙 Annual dividend: $2.00 (based on $0.50 quarterly payout)
📊 Yield: Approximately 1%
📈 Payout Ratio: Around 47%, indicating solid financial footing and room for future increases
For investors, the upgrade signals confidence not just in Oracle’s current performance, but in its long-term positioning within the cloud and enterprise software space. The steady dividend adds an element of reliability, making the stock appealing both for growth-focused and income-seeking portfolios.