Oppenheimer upgraded Oracle to Outperform from Perform with a $185 price target, citing improved risk-reward after the stock's valuation multiples were cut by more than half since September. Analyst Brian Schwartz acknowledged the call may be early given Oracle's transition to a more capital-intensive business model, but argued the recent selloff has created an attractive entry point.

Oracle shares rose over 2% in premarket trading after falling approximately 25% in 2026 amid investor concerns about heavy AI and cloud infrastructure spending. The selloff accelerated in late 2025 as broader software stocks faced pressure from generative AI disruption. Schwartz projects Oracle's pro-forma earnings per share could grow at a 20% CAGR through fiscal year 2030 under base case assumptions, reaching $12.66, with a bull case implying 30% growth to $17.79.

The upgrade reflects several positive factors including easing counterparty and financing risks following recent capital-raising plans and major customer wins like OpenAI and TikTok. Schwartz also noted Oracle remains "relatively immune from AI disruption" and is "broadly underowned by institutional investors." Despite the upgrade, he emphasized Oracle remains a "show me stock" requiring consistent execution to shift sentiment, with downside risk increasingly protected at current valuation levels.