Oracle's AI-Driven Growth Acceleration Is Playing Out, UBS Says

12:36 PM EDT, 09/11/2026 (MT Newswires) -- Oracle (ORCL) is seeing its material AI-driven growth acceleration play out, with quarterly positives outweighing the lack of a raised fiscal 2027 revenue guide, UBS said in a note Friday. The bank cited strong execution, tightly managed opex, and backlog growth from greater customer diversity. UBS said guidance for continued cloud infrastructure acceleration through fiscal 2027 was a positive surprise, and pointed to reaffirmed fiscal 2027 capex guidance of $90 billion-$95 billion and completion of Oracle's $20 billion ATM/secondary offering as easing credit risk. GPU pricing gains of over 20% on renewals support the view that revenue-per-gigawatt economics may be improving, UBS said. On the downside, UBS flagged Oracle's reaffirmation, rather than raise, of its $90 billion fiscal 2027 revenue guide, and a wide fiscal second-quarter growth range, as signs of capacity-timing uncertainty. UBS kept its buy rating on the stock and raised its price target to $250 from $245. Price: 151.48, Change: -1.47, Percent Change: -0.96