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Bank of America aggressively upgrades Oracle stock price target

By Mwangi Enos TheStreet

Updated June 9, 2026 3:45 PM

Most people don't think about Oracle the way they think about Nvidia or Broadcom. It doesn't have the same flashy artificial intelligence (AI) narrative.

It started as a CIA database project in 1977. For decades, it was the unglamorous but indispensable backbone of enterprise computing.

Then the cloud happened. Then AI happened. And suddenly Oracle's remaining performance obligations - essentially its contracted future revenue - jumped 325% year over year to $553 billion in a single quarter, according to Oracle. That number is so large it almost reads as a typo.

Bank of America (BofA) Securities isn't treating it like one. The firm raised its price target on Oracle (ORCL), maintaining its buy rating ahead of Oracle's Q4 fiscal 2026 earnings report scheduled for after the market close on Wednesday, June 10.

With Wall Street broadly aligned on the bull case, and multiple firms setting targets well above $240, the question heading into June 10 isn't whether Oracle is growing. It's whether the market has already priced in the best-case scenario.

Also Read: Oracle Corporation Latest News

BofA raises Oracle stock price target to $240 from $200

BofA's revised $240 target is based on 26.5 times its calendar year 2027 price-to-earnings (P/E) estimates, up from 22 times previously, according to a note shared with me at TheStreet.

That multiple expansion reflects two specific developments the BofA cited.

Broader software sector strength has lifted valuations across the peer group.
Approximately $50 billion in recent debt and equity raises have materially reduced funding concerns around Oracle's aggressive data center buildout.

Oracle currently trades at a P/E ratio of 38, according to Yahoo Finance. That premium reflects investor confidence in the cloud infrastructure growth trajectory.

BofA said underlying demand trends remain robust across both cloud infrastructure and database workloads.

It flagged three areas as key focus points for Q3 2026 earnings, according to the note:

Data center buildout pace and revenue recognition timing
Capital expenditure and financing needs tied to that buildout
Sustained strength in the core database and software business

Oracle noted in its Q3 2026 statement that AI Code Generation technology is enabling it to "build more software in less time with fewer people."

Justin Sullivan/Getty Images

What Oracle's Q3 results set up for the June 10 print

Oracle's Q3 fiscal 2026 results, reported on March 10, gave investors a preview of what's possible when cloud infrastructure and AI demand align with execution.

Key Oracle Q3 highlights:

Total revenue: $17.2 billion, up 22% year over year (YoY) in USD
Cloud revenue: $8.9 billion, up 44% YoY in USD
Cloud infrastructure (IaaS) revenue: $4.9 billion, up 84% YoY
Multicloud database revenue: Up 531% YoY in USD
Non-GAAP EPS: $1.79, up 21% YoY, above guidance
Remaining performance obligations (RPO): $553 billion, up 325% YoY

Source: Oracle Fiscal Year 2026 Third-Quarter Financial Results

That last figure deserves context. Oracle's RPO - contracted revenue not yet recognized - surged $29 billion in a single quarter, driven primarily by large-scale AI contracts, according to the Oracle statement.

Notably, in the same statement, Oracle said it does not expect to raise incremental funds to support these contracts, as most equipment is either funded upfront via customer prepayments or supplied directly by customers.

I crunched the numbers on what that means for visibility. At Q3's revenue run rate, $553 billion in RPO represents years of contracted work. That's not a pipeline. It's a backlog that fundamentally de-risks the growth story.

The $90 billion Oracle revenue target that has Wall Street paying attention

In my previous Oracle piece, Oracle's own guidance for fiscal year 2027 is where the story turns genuinely ambitious.

The company raised its FY27 total revenue target to $90 billion, according to the Oracle statement, up from the $67 billion expected for fiscal year 2026.

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That implies roughly 34% revenue growth in a single fiscal year for a company already operating at significant scale.

The engine behind that target is Oracle Cloud Infrastructure (OCI), which grew 84% YoY in Q3 and is guided to accelerate further.

For Q4 fiscal 2026, Oracle's own guidance calls for:

Total revenue growth: 19% to 21% in USD
Cloud revenue growth: 46% to 50% in USD, a step up from Q3's 44%
Non-GAAP EPS: $1.96 to $2.00 in USD

Source: Oracle Fiscal Year 2026 Third-Quarter Financial Results

In my previous Oracle report, I also highlighted that analysts are modeling $1.96 in EPS on revenue of $19.10 billion for the quarter.

If Oracle delivers at the high end of its own cloud revenue guidance, it would mark back-to-back quarters of accelerating cloud growth at a scale few enterprise software companies can match.

Where the rest of Wall Street stands on Oracle ahead of earnings

BofA's $240 target is actually among the more conservative on the Street right now.

My review of the analyst consensus data shows a wide range of targets, all pointing higher, according to Investing.com.

TD Cowen: $300
Scotiabank: $290
UBS: $285, raised from $250
Oppenheimer and Wedbush: $275
Evercore ISI: $245
Barclays: $240, overweight

ORCL shares were trading at $212.32, according to Yahoo Finance data as of June 9, 2026.

One dynamic is worth watching on June 10.

Oracle noted in its Q3 statement that AI Code Generation technology is enabling it to "build more software in less time with fewer people," restructuring product development teams into smaller, more agile groups.

That's a margin story layered on top of the revenue story, and it's one the Street hasn't fully priced in yet.

The $553 billion RPO. The $90 billion FY27 target. The 531% multicloud database growth. Oracle isn't the unglamorous backbone story it used to be.

The upcoming earnings call will likely show how the acceleration is real.

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This story was originally published June 9, 2026 at 3:33 PM.