Oracle's 28% Weekly Surge Puts the Spotlight on June 10 Earnings as UBS Lifts Target to $285
Veröffentlicht: 03.06.2026 um 05:42 Uhr, Redaktion boerse-global.de
Oracle's stock has been on a tear, gaining roughly 28% in the past seven days alone, ahead of its fiscal fourth-quarter earnings release on June 10. That blistering run has pulled the shares to well above their 200-day moving average, but it has also cranked up the pressure on management to deliver numbers that justify the rally. UBS has added to the bullish narrative, raising its price target on Oracle to $285 from a prior level and reaffirming its buy rating.
The upgrade from UBS analyst Karl Keirstead comes after a round of checks with four large customers and partners, plus feedback from a contractor involved in the AI data center buildout in Abilene, Texas. Keirstead found no evidence of a slowdown in momentum, and the bank values Oracle at 27 times expected non-GAAP earnings for calendar 2027. The core thesis: soaring demand for cloud capacity should translate into predictable revenue and stable margins over the long term.
That thesis will face its most immediate test when Oracle reports results after the closing bell on June 10. The company's own guidance, issued in March, set a high bar. Oracle expects fourth-quarter revenue growth of 19% to 21%, with cloud revenue climbing between 46% and 50%. On a non-GAAP basis, earnings per share are targeted at $1.96 to $2.00. For the full fiscal year 2026, management maintains a revenue target of $67 billion, while guiding for $90 billion in fiscal 2027 — a plan backed by $50 billion in capital expenditures.
Should investors sell immediately? Or is it worth buying Oracle?
Oracle enters the print with a formidable backlog of contracted but unfulfilled obligations. At the end of the third quarter, remaining performance obligations stood at $553 billion, a 325% jump from a year earlier. The company has attributed this explosion to large-scale AI contracts, noting that customers often fund the required hardware themselves through prepayments or by supplying their own GPUs. That financial structure helps explain how Oracle can commit to such ambitious spending without stretching its own balance sheet.
The third-quarter results that set this stage were already impressive. Total revenue reached $17.2 billion, up 22% year over year. Cloud infrastructure revenue surged 84% to $4.9 billion, far outpacing cloud applications growth of 13% to $4.0 billion. Those cloud infrastructure numbers will be the key metric to watch in the Q4 report, as the company's ability to sustain that pace will directly underpin the long-term guidance.
Despite the recent stock surge, Oracle's shares still trade about 25% below their 52-week high of $280.70. In euro terms, the stock is around €210, having gained roughly 45% over the past 12 months. The UBS target of $285 sits just above that high, implying further upside if the company can deliver on its promises.
The earnings release is scheduled for after U.S. market hours on June 10, with a conference call and live webcast at 11 p.m. Central European Time. That means investors will have to wait until June 11 to trade on the news, making the tone of the call critical for the market's initial reaction. The central question the quarter must answer is whether the massive backlog — and the 28% weekly run — is built on a foundation of sustainable cash flows and margins, or on hype that still needs to be proven.
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