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Oracle's FY26, FY27 Growth Targets May Be a Stretch -- Market Talk

Dow Jones
Mar 12, 2025

1421 ET - Oracle's F3Q results were healthy overall, but its lofty FY26/27 growth targets may be hard to reach, BofA Securities analysts say in a research note. Oracle's commentary suggests strength is expected to remain balanced across database migrations and AI workloads, with its sustained cloud strength backing bullish growth targets. However, the analysts are skeptical due to the deceleration in cRPO growth--a metric used by Oracle and others to track future revenue commitments. The analysts also say there will be tougher cRPO comparisons starting in 1Q. Also, higher capital expenditures will likely weigh on margin going forward, the analysts say. Oracle falls 2.8% to $144.54. (sabela.ojea@wsj.com; @sabelaojeaguix)

(END) Dow Jones Newswires

March 11, 2025 14:22 ET (18:22 GMT)

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