‘Bearish Concerns Around Oracle Are Easing,’ Says Mizuho Securities

FomoAnxiety · 2026-03-16T18:09:58+00:00

Analysts at Mizuho Securities indicate that concerns about Oracle's ability to fund its data center projects are easing, attributed to recent financing successes and increased contract revenue. This has led to a positive outlook on the stock, despite a revised price target.

FomoAnxiety

2026-03-16 18:09:58

Abstract generation in progress

Oracle’s (ORCL) latest earnings results and outlook suggest that some of the bearish concerns around the tech company may be starting to ease, according to analysts at Mizuho Securities. Indeed, one of the main worries among investors had been whether Oracle could afford its large data center projects without taking on too much debt. However, analyst Siti Panigrahi said that recent developments suggest that investors are becoming more comfortable with Oracle’s ability to continue building out its AI infrastructure.

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Part of the reason is due to Oracle’s recent financing moves. In February, the company raised $30 billion through investment-grade bonds and another $20 billion through an at-the-market offering, which helped address questions about funding. In addition, Oracle secured $29 billion in new contracts that use a “bring your own hardware” model and include upfront customer payments. Because customers are paying in advance and providing some of the hardware, a portion of Oracle’s AI infrastructure expansion can effectively fund itself.

At the same time, OpenAI’s recent fundraising has also reduced concerns about whether key partners will be able to meet their long-term contract obligations. Moreover, Oracle’s large backlog of contracted revenue is improving the company’s growth outlook. More specifically, the company reported remaining performance obligations of $66 billion, which represents a 64% increase compared with a year ago. As a result, Panigrahi maintained a Buy rating on the stock but lowered the price target from $400 to $320.

Is ORCL Stock a Good Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on ORCL stock based on 26 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average ORCL price target of $247.25 per share implies 58.6% upside potential.

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