Oracle stock soars 12% toward record close

oracle Shares soared more than 12% in intraday trading Tuesday and are on pace for a record close, a day after the company reported third-quarter results that beat analysts’ expectations.

As of midday Tuesday, the stock was trading above $127, above its all-time high of $126.71 set on September 11, 2023. It’s also on pace for the biggest gain since Dec. 10, 2021, when Oracle stock closed up 15.6%. .

According to LSEG (formerly Refinitiv), Oracle reported adjusted earnings per share of $1.41, beating analysts’ expectations of $1.38. Revenue was $13.28 billion, slightly below the $13.3 billion expected by analysts.

Revenue from the company’s largest business, Cloud Services and License Support, rose 12% to $9.96 billion, beating analysts’ estimates of $9.94 billion, according to Street Accounts.

Deutsche Bank raises its price target on Oracle stock to $150 from $135, noting CEO Safra Katz’s outlook for fiscal 2026 and reiterating strong performance in cloud infrastructure did.

Analysts maintained a buy rating on Oracle’s stock, but said in a note Tuesday that Oracle’s cloud infrastructure is “driving stock market trends, and we are more confident than ever about the demand situation.” “

Analysts at UBS raised their price target on Oracle stock to $150 from $130 on Tuesday, saying they are “encouraged by the revenue recovery, OCI growth, AI backlog, and the outlook for the leading company.” He reiterated his buy rating on the stock. Core database businesses are likely to benefit from AI-driven cloud migration in 2024-2025. ”

Bernstein Research analysts, who have a Buy rating on Oracle stock, raised their price target from $147 to $159. They wrote on Tuesday that the results “dispel some of the growth concerns that have been creeping in over the past two quarters,” citing management’s comments that supply continues to outstrip demand.

—CNBC’s Kif Leswing and Jordan Novet contributed to this report.