Oracle’s (ORCL) execution on medium-term guidance likely will set up the company to be a good earnings per share and cash generation growth compounder, Oppenheimer said in an emailed note to clients Thursday.
The company’s fiscal year 2026 financial targets include accelerating revenue growth and operating margins returning to best-in-class among enterprise software companies at 45%, according to the note.
Oppenheimer sees Oracle “as a long-term beneficiary of the software industry secular trends,” which include digital transformation, generative AI and other developments, “driving revenue growth and operating leverage.”
Oppenheimer initiated its coverage on Oracle at perform rating.