BofA Securities analyst Tal Liani has maintained a Buy rating on Oracle and raised the price target to $240 from the previous $200, citing expectations for significant cloud growth acceleration. The revised target reflects robust underlying demand across cloud infrastructure and database workloads. Oracle is scheduled to report its fourth quarter results for fiscal 2026 on Wednesday, June 10.

Cloud Growth Projections

The analyst expects Oracle's Cloud PaaS/IaaS to grow 94% year-on-year in the fourth quarter of fiscal 2026, accelerating from 84% in the previous quarter. New data center capacity becoming available is likely to enable more revenue recognition from the company's remaining performance obligations (RPOs). The Cloud segment currently represents 52% of Oracle's total revenues, up from 44% a year ago.

Margins and Capital Expenditure

Liani expects Cloud & Software gross margins to be 70%, almost flat versus the previous quarter, with total gross margin at 67%. Oracle's capital expenditures are likely to be a focus area during the earnings call, as the company continues to invest aggressively in data center capacity to meet its backlog commitments and overall demand for compute.

Market Performance

The stock has risen more than 30% since Oracle reported its third-quarter earnings and over 45% since March. This rally is driven mainly by strength in the broader software market and reduced funding overhang following Oracle's recent debt and equity raises of around $50 billion. Oracle shares were down 1.25% at $209.16 at the time of publication.

Oracle has been named a Leader in the 2026 Gartner Magic Quadrant for Talent Acquisition (Recruiting) Suites, recognizing its AI-powered recruiting capabilities. The evaluation focused on Oracle Fusion Cloud Recruiting and Oracle Fusion Cloud Recruiting Booster, which are part of the Oracle Fusion Cloud Human Capital Management (HCM) suite. This positioning underscores the company's ability to help organizations improve candidate experiences, accelerate hiring, and support skills-based talent acquisition.

The 2026 Gartner Critical Capabilities for Talent Acquisition (Recruiting) Suites report further detailed Oracle's performance across specific use cases. The company ranked second in the Core Applicant Tracking Systems (ATS) Use Case. Additionally, Oracle secured the third position in both the Extended AI and Extended CRM Use Cases. It also ranked fourth in the High-Volume Hiring Use Case.

Strategic Capabilities

Oracle Recruiting and Oracle Recruiting Booster utilize agentic applications and AI agent capabilities to enhance the candidate experience and streamline hiring. The platform supports skills-based hiring and internal mobility, allowing organizations to expand talent pools and improve workforce agility. By automating manual tasks and streamlining workflows, the solution aims to increase recruiter productivity and operational efficiency.

The embedded AI capabilities within Oracle Cloud HCM enable organizations to optimize candidate sourcing and screening, which helps identify qualified candidates faster. Personalized candidate engagement tools are designed to improve response rates and strengthen employer branding. Furthermore, connected interview and hiring workflows facilitate better collaboration and accelerate hiring processes.

Platform Integration

Oracle Cloud HCM is a component of Oracle Fusion Cloud Applications, providing a unified AI-powered HR platform. It connects people, processes, and data to automate the employee lifecycle and enhance the employee experience. The platform also offers embedded hiring analytics and insights to support data-driven decision-making and optimize talent strategies.

Nagaraj Nadendla, senior vice president of HCM product development at Oracle, stated that the company's embedded AI capabilities simplify recruiting processes and support skills-based talent strategies. He attributed the Leader designation to Oracle's focus on helping organizations build a more agile and connected workforce.