Wedbush Securities analyst Dan Ives reset the price target for Oracle stock to $275 for the remainder of 2026 [1, 2].
The adjustment comes as the company attempts to recover from a significant valuation drop. Oracle stock is currently roughly 50% below the peak it reached in September 2025 [1].
Ives said several key financial drivers justify the higher target. Chief among these is the company's cloud growth rate, which stands at 84% [2]. This rapid expansion in cloud infrastructure is coupled with a substantial backlog of $553 billion [1].
Furthermore, the analyst highlighted a specific partnership as a catalyst for future gains. Wedbush said there is a $300 billion contract between Oracle and OpenAI [2]. This agreement represents a massive commitment of resources, and infrastructure, to support artificial intelligence development.
The combination of a high growth rate and a deep backlog suggests a strong pipeline of revenue for the company. By resetting the target to $275 [1], Wedbush indicates a bullish outlook on Oracle's ability to monetize its cloud services and AI partnerships over the next year.
“Oracle stock is roughly 50% below its September 2025 peak”
This price target reset suggests that institutional analysts believe Oracle is pivoting from a legacy database company to a primary infrastructure provider for the AI era. The massive scale of the OpenAI contract and the cloud growth rate indicate that Oracle is successfully capturing a portion of the generative AI boom, potentially decoupling its valuation from previous software-as-a-service trends.
