Mizuho: Oracle to beat expectations in December report. The past one lifted the stock 36%

Cloud provider Oracle will beat Wall Street's expectations in its quarterly report due out in December, Mizuho Securities analyst Siti Panigrahi predicted. Oracle shares soared 36% to a new record after the previous report surprised Wall Street, although they have lost momentum since then. But Mizuho believes the stock could rise another nearly 80%.

"We believe Oracle is well positioned to beat expectations [in its fiscal 2026 second-quarter report]," Mizuho analyst Siti Panigrahi wrote in a note cited by Barron's. Mizuho reiterated an Outperform rating and $400 target price for Oracle shares. That implies a 76% upside from the closing price on Nov. 12.

The stock fell 3.9% to $226.99 in Wednesday trading. This was the lowest closing level since September 4.

According to Mizuho, a recent report from rival cloud provider CoreWeave was positive for Oracle shareholders. CoreWeave's results showed strong demand for AI capacity, which strengthens the case for Oracle's order book to continue to grow as it scales learning and AI applications, Panigrahi suggested.

However, to overcome the prolonged downturn, Oracle will have to convince investors that the company is capable of not only meeting the demand for AI, but also capitalizing on it, Barron's notes.

Oracle shares jumped 36% after the company reported and announced that its contractual commitments more than tripled - from $138 billion to $455 billion - in the first quarter of fiscal 2025 compared to the previous quarter. The figure signaled strong demand for renting servers for artificial intelligence in the cloud.

Since then, however, Oracle's securities have fallen more than 30% due to concerns about weaker-than-expected profitability, complicated financing schemes and other factors.

Nevertheless, most Wall Street analysts share Mizuho's optimism: 32 out of 46 recommend buying the securities, 11 recommend holding, and only two advise selling, FactSet shows. The analysts' consensus target price is $351.5, up 55% from Wednesday's closing price.

This article was AI-translated and verified by a human editor