Oracle(US:ORCL) Benzinga·2025-09-10 19:20Core Insights - Oracle's shares surged following the release of first-quarter results, driven by robust growth in its cloud and AI infrastructure business, alongside a record backlog of multi-billion-dollar contracts, emphasizing its expanding role in the AI market [1][4] Company Performance - Oracle's cloud platform experienced a surprise gain, with a Recovery Point Objective (RPO) climbing to $455 billion, marking a 359% year-over-year increase, and a backlog increase of $317 billion in a single quarter [4][6] - The cloud RPO surged nearly 500% year-over-year, indicating strong demand for Oracle's services [4] - Oracle's capital expenditure guidance increased to $35 billion from over $25 billion, reflecting demand that significantly outstrips supply [4][10] Analyst Ratings and Projections - Piper Sandler's Brent Bracelin maintained an Overweight rating and raised the price forecast from $270 to $330, highlighting Oracle's transformation into a leader in AI infrastructure [3] - Citizens JMP analyst Patrick Walravens reiterated a Market Outperform rating and raised the price forecast to $342 from $315, projecting adjusted EPS of $6.75 for fiscal 2026 and $8.04 for fiscal 2027 [5][6] - Bank of America Securities analyst Brad Sills upgraded Oracle from Neutral to Buy, raising the price forecast from $295 to $368, and projecting OCI revenue to grow at a 51% four-year CAGR [8][9] Market Position and Future Outlook - Oracle is positioned as a key player in the AI infrastructure market, which is expected to reach $155 billion by 2030, attracting top-tier customers such as OpenAI, Meta, Nvidia, and AMD [9] - The company's ability to secure multi-billion-dollar AI contracts and sustain over 40% growth across IaaS and SaaS segments could elevate the cloud mix to over 50% of revenue next year [5] - Projected fiscal 2028 adjusted EPS is expected to rise to $14.32, reflecting anticipated revenue growth of 53% [6]