Oracle's ($ORCL) cloud momentum is poised to significantly bolster the company’s financial performance as it heads towards its fiscal 2029 targets, as detailed in a recent analysis by Deutsche Bank. The financial outlook presented by Oracle indicates an ambitious revenue forecast that is set to surpass $104 billion in 2029.
This forecast translates to an impressive average growth rate of 16% from 2026 to 2029. Doug Kehring, the executive vice president of corporate operations at Oracle, elaborated on these projections during a financial analyst meeting held on Thursday, as captured in a transcript from Capital IQ. During this meeting, Kehring articulated the company's strategic goals, which include achieving a remarkable 45% operating margin and increasing earnings per share (EPS) by over 20% by the fiscal year 2029.
"Our time at Oracle's CloudWorld conference and related analyst meeting reinforces our confidence in the company's continued cloud momentum," stated Brad Zelnick, a Deutsche Bank analyst. Zelnick’s positive perspective stems from the insights gained during the CloudWorld event, which took place from September 9 to September 12. Reiterating his buy rating on Oracle’s stock, Zelnick has adjusted the target price upward to $200 from the previous $180.
Notably, Oracle’s share price experienced a rise of 2.8% in Friday's trading session, reflecting growing market confidence. Oracle has also revised its revenue target for 2026, now setting it at a minimum of $66 billion—an increase from a prior goal of $65 billion. The company continues to aim for at least 10% growth in EPS, a goal reiterated by Kehring during the Thursday conference.
Earlier in the week, Oracle’s fiscal first-quarter earnings report exceeded analysts' expectations, further confirming its robust market position. The cloud services and license support segment demonstrated a year-over-year sales increase of 10% in the most recent quarter, while revenue from the cloud license and on-premise license segments grew by 7%. Kehring expressed strengthening confidence in Oracle's ability to accelerate its revenue growth, highlighting customer interest as a key driver behind increasing bookings.
He noted, "What we are gaining is both more revenue and more profit dollars as we invest and grow our business in the cloud." Current Share Price: $164.46 | Change: +3.08 | Percent Change: +1.91.