Citi Lowers Oracle (ORCL) PT to $375 on Valuation Concerns, Maintains Buy Rating Expecting Strong Bookings

Core Insights - Oracle Corporation is recognized as a highly profitable tech stock, with a recent price target adjustment by Citi analyst Tyler Radke from $415 to $375, while maintaining a Buy rating due to valuation compression [1][3] Financial Performance - For FQ1 2026, Oracle reported total revenue of $14.9 billion, marking an 11% increase year-over-year, driven primarily by cloud services [2] - Total Cloud revenue grew by 27% to $7.2 billion, with Cloud Infrastructure revenue surging 54% to $3.3 billion, and OCI Consumption revenue increasing by 57% [2] - The company's Remaining Performance Obligations (RPO) saw a significant increase of 359% from the previous year, reaching $455 billion [2] Business Segments - Oracle's core database business demonstrated strong performance, with Cloud Database Services revenue reaching approximately $2.8 billion, up 32% [3] - Autonomous Database revenue grew by 43%, while Multi-cloud REV Database revenue experienced explosive growth of 1,529% in FQ1 [3] - Cloud Application revenue increased by 10% to $3.8 billion, with Strategic Back Office Application revenue specifically growing 16% to $2.4 billion [3] - In contrast, Total Software revenue for the quarter decreased by 2% to $5.7 billion [3] Strategic Positioning - Oracle has established itself as a key player in AI workloads, securing significant contracts with major companies such as OpenAI, Meta, NVIDIA, and AMD [3]