Key Takeaways
- Oracle disclosed on Monday that its sales are off to a “strong start” this fiscal year, including a deal worth $30 billion annually beginning in fiscal 2028.
- The stock is edging higher in premarket trading Tuesday after closing at a record high yesterday.
- Citi analysts said Tuesday that they don’t expect the new deals having a big impact on Oracle’s fiscal 2026 results, as they were likely already factored in previously.
Oracle (ORCL) stock is hovering just above the record-high close it recorded Monday, propelled by the cloud computing giant’s disclosure of new deals, including one worth an estimated $30 billion a year beginning in fiscal 2028.
Citi analysts in a Tuesday note held their “neutral” rating and $196 price target. They wrote that the new deal was likely “already embedded in the outlook” considering it was closed and announced within a month of when the company reported its fiscal fourth-quarter results.
“We view the deal as a positive read-through on overall AI demand, consistent with our GenAI summit takeaways and positive view on (Microsoft),” the Citi analysts wrote, while adding that they “continue to see concerns around the profitability profile of some of the AI/GPU contracts.”
Oracle shares are little changed an hour before the opening bell after closing at a record $218.63 Monday.