Key Takeaways
- Dan Ives of Wedbush Securities increased Oracle’s price target to $275 from $225 on May 13, the second boost in less than three weeks.
- Oracle shares are trading approximately 50% below their September 2025 highs despite robust business fundamentals.
- Oracle Cloud Infrastructure posted 84% year-over-year revenue growth, reaching $4.88 billion in the latest quarter.
- The company holds a $553 billion remaining performance obligations backlog, surging 438% year over year, featuring a $300 billion OpenAI cloud deal.
- Wedbush contends Wall Street is misinterpreting Oracle’s capital expenditure strategy, which is supported by locked-in customer contracts rather than speculative bets.
On May 13, Wedbush Securities analyst Dan Ives boosted his Oracle (ORCL) price target to $275 from $225 while maintaining an outperform rating. This marks the second upward revision in under three weeks.
Wedbush launched coverage on Oracle on April 24 with an outperform stance and a $225 price objective, characterizing the company as “a foundational infrastructure provider for the AI revolution.”
Oracle stock currently trades about 50% beneath its September 2025 all-time high. This substantial gap between the present trading price and Wedbush’s projection represents one of Wall Street’s most notable valuation disconnects.
Ives initially maintained his $225 target on April 28 following Oracle’s steep decline after a Wall Street Journal article questioned OpenAI’s internal revenue projections.
He characterized that market reaction as a “way overreaction,” emphasizing Oracle’s contractual backlog as proof that customer demand is genuine and committed.
Understanding the $553 Billion Contract Backlog
The cornerstone of Wedbush’s bullish thesis centers on Oracle’s $553 billion remaining performance obligations backlog. This metric captures multi-year customer commitments for cloud services and AI infrastructure that have yet to be fulfilled or recognized as revenue.
This backlog has exploded 438% year over year. Within this total sits a five-year, $300 billion cloud infrastructure agreement with OpenAI.
Such forward revenue visibility is uncommon across the technology landscape. Wedbush believes the market is placing too little emphasis on this contracted demand while overemphasizing short-term capital investment concerns.
Oracle Cloud Infrastructure delivered 84% year-over-year revenue expansion, hitting $4.88 billion in the most recent reporting period. AI infrastructure gross margins reached 32%, surpassing the company’s stated 30% guidance minimum.
Profitability and Revenue Quality
Oracle’s multicloud database segment operates at gross margins between 60% and 80%. This high-margin business mix is enhancing overall profitability as the infrastructure segment achieves scale.
Ives has been unambiguous in his public statements. “I think Oracle is going to be a tremendously bigger company in the next two, three or four years than it is today,” he stated during a Bloomberg television appearance.
“This stock ultimately could double as they monetize A.I. over the coming years,” he noted, according to The Daily Hodl.
Wedbush’s central thesis holds that Wall Street is fundamentally misunderstanding Oracle’s capital expenditure cycle. The firm argues investors are viewing aggressive spending as a liability when it actually represents contract-backed investment tied to confirmed customer demand.
The firm indicates growing confidence in the OpenAI partnership and increasing optimism regarding the broader data center expansion narrative.
Oracle received its second Wedbush price target upgrade in three weeks on May 13, 2026.
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