"Tal Liani's thesis centers on what he calls 'large and visible revenue potential' from accelerating AI infrastructure demand. Oracle's remaining performance obligations hit $553 billion in Q3 FY2026, up 325% year-over-year, representing contracted future revenue with exceptional visibility."
"Cloud infrastructure revenue grew 84% year-over-year to $4.89 billion last quarter, and management has stated that AI-driven demand continues to exceed supply. Liani adds that Oracle must still prove it can deliver capacity, convert long-dated contracts into revenues, and manage a capital-intensive buildout."
"The $553 billion RPO is contracted future revenue, not speculative pipeline. CEO Safra Catz noted that 'most of the revenue in this 5-year forecast is already booked in our reported RPO,' pointing toward a five-year OCI roadmap that reaches $144 billion in annual revenue by FY2030."
Oracle's shares have declined 24.20% year-to-date, trading around $147.94, significantly below their 52-week high. Analysts maintain a consensus target of $249.02, indicating long-term optimism. Bank of America analyst Tal Liani reinstated coverage with a Buy rating and a $200 price target, focusing on AI infrastructure demand. Oracle's remaining performance obligations reached $553 billion, showing strong future revenue potential. Cloud infrastructure revenue grew 84% year-over-year, but Oracle must prove its capacity and manage a capital-intensive buildout to achieve these targets.
Read at 24/7 Wall St.
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