Sept 13 (Askume) – Oracle Corp (ORCL.N) shares lost most of their gains on Friday, rising nearly 8%, as some analysts warned the company’s fiscal 2029 revenue would exceed the $100 billion it needs.
The company, whose customers include AT&T (TN) , Lyft (LYFT.O) and Cognizant (CTSH.O) , forecast fiscal 2029 revenue of $104 billion in its annual presentation to financial analysts on Thursday.
Enterprises rely heavily on cloud services provided by companies such as Oracle, Microsoft, and Amazon to leverage AI capabilities and run day-to-day operations.
However, some analysts said the forecast was too ambitious.
Calling them “very ambitious,” analyst Gil Luria of DA Davidson & Co. said Oracle would need to make “significant acquisitions” to achieve those goals.
“The company expects demand for rental GPU (graphics processing unit) capacity to grow rapidly in the future.”
Oracle also raised its fiscal year 2026 revenue forecast to $66 billion from $65 billion.
That would mean annual growth of 11.7% over the first two years and more than 16.1% over the remaining three years, said Michael Ashley Schulman, chief investment officer at Running Point Capital.
Its shares were still up 1.9%. At least nine brokerages raised their target price on the company.
Brokerage firm Bernstein said Oracle is “surprisingly well positioned” to gain market share in cloud services.
“Even assuming this is a desirable outcome, it provides another sign of growing optimism from an experienced and proven leadership team,” brokerage Piper Sandler said in a note.
The company’s shares have risen more than 50% this year through Thursday’s close, far outpacing bigger rivals Microsoft Corp (MSFT.O) and Amazon.com Inc (AMZN.O) , which have each gained about 14%.
Oracle’s expected price-to-earnings ratio is 24.65, Microsoft’s price-to-earnings ratio is 31.52, and Amazon’s price-to-earnings ratio is 33.73.
