Oracle (ORCL) could see fiscal Q4 upside and potential guidance upgrades from strong technology infrastructure spending and the restructuring that it announced in March, Oppenheimer said in a Tuesday note.
Financial results from Oracle's biggest customers, partners, and suppliers indicated robust technology infrastructure spending in the quarter ended March 31, the investment firm said, noting that this points to "greater-than-expected" demand for the company's services.
The growing demand is happening against the backdrop of Oracle's restructuring announced March 31, when it said it would cut about 18 percent of its global workforce, according to the note.
Oracle's fiscal Q4 period is expected to see solid bookings growth from OpenAI, Nvidia (NVDA), Meta Platforms (META), and federal government commitments, Oppenheimer added. Microsoft (MSFT) is also outsourcing its training business to Oracle, according to the brokerage.
Oppenheimer said Oracle continues to be its "top pick," with an outperform rating and a higher price target of $235 from $210 previously.
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