Oracle(US:ORCL) GUOTAI HAITONG SECURITIES·2026-03-12 07:06Investment Rating - The report maintains a "Buy" rating for Oracle (ORCL.N) with a target price adjustment to $242 [13][9]. Core Insights - Oracle's revenue guidance has been raised, reflecting smooth progress in data center construction, with cloud revenue growth driving overall performance [3][13]. - The company reported a 22% year-over-year revenue increase to $17.2 billion, primarily driven by a 44% increase in cloud revenue, with IaaS revenue up 84% and SaaS revenue up 13% [13][9]. - Oracle's capital expenditures (Capex) are expected to enter a contraction phase, with a current Capex of $18.6 billion and a guidance of approximately $50 billion for FY2026, alleviating market concerns about uncontrolled expansion [13][9]. Financial Summary - Revenue projections for FY2026E-FY2028E have been adjusted to $67.5 billion, $89.3 billion, and $130.2 billion respectively, with Non-GAAP net profits projected at $21.8 billion, $24.0 billion, and $31.9 billion [5][13]. - The gross profit margin is expected to decline from 71.4% in FY2024 to 53.1% in FY2028, indicating a shift in profitability dynamics [5][13]. - The remaining performance obligations (RPO) reached $553 billion, reflecting a quarter-over-quarter increase of approximately $29 billion [13][9]. Market Data - Oracle's current market capitalization stands at $468.7 billion, with a stock price range over the past 52 weeks between $122.82 and $328.33 [9][13]. - The company has successfully raised $30 billion through investment-grade bonds and convertible preferred stock, with plans for an additional $20 billion equity financing [13][9].