KEY TAKEAWAYS
- Oracle shares surged in premarket trading Friday, a day after a senior executive told analysts its annual revenue will rise to at least $104 billion in fiscal 2029.
- Executive Vice President Doug Kehring’s projections, which Citi analysts called “lofty,” come just days after the software maker posted Wall Street-beating quarterly results.
- Oracle also raised its sales outlook for fiscal 2026 to at least $66 billion from a prior target of $65 billion, ahead of the $64.8 billion consensus estimate of analysts polled by Visible Alpha.
Oracle (ORCL) shares surged in premarket trading Friday, a day after Executive Vice President Doug Kehring told analysts its annual revenue will rise to at least $104 billion in fiscal 2029.
Citi analysts called Kehring’s projections “lofty,” adding that the new 2029 target, a bet on artificial intelligence (AI)-fueled growth, exceeded even the most bullish expectations.
“FY29 is a ways out, and it’s hard for us to underwrite given the rapid evolving GenAI/tech landscape and questions around durability of AI workloads,” they wrote, saying the targets implied that Oracle would chalk up an earnings per share (EPS) compound annual growth rate (CAGR) of at least 20% between fiscal 2026 to fiscal 2029.
The forecast comes just days after the software maker posted Wall Street-beating quarterly results and announced a multicloud partnership with Amazon’s (AMZN) Amazon Web Services.
Oracle Also Raises Fiscal 2026 Forecast, Beating Consensus Estimates
The company also reportedly raised its sales outlook for fiscal 2026 to at least $66 billion from a prior target of $65 billion, ahead of the $64.8 billion consensus estimate of analysts polled by Visible Alpha.
Oracle didn’t immediately return an Investopedia request for comment.
Shares rose 6% soon before the opening bell and are up more than 50% this year on booming demand from AI developers for cloud computing.