Oracle Corporation (NYSE:ORCL) is one of the most promising stocks with huge upside potential. On November 25, DA Davidson lowered the firm’s price target on Oracle to $200 from $300 with a Neutral rating on the shares. The firm noted that when Oracle reported earnings for FQ1 2026, the company initially suggested that the increase in Remaining Performance Obligations/RPO was driven by several customers. However, the following day, it was revealed that nearly the entire RPO increase was attributable to a single customer: OpenAI.
Although the $300 billion commitment was OpenAI’s largest at the time, making Oracle appear to have won a significant deal, the firm argues that OpenAI’s subsequent announcement of over a trillion dollars in commitments showed that it was not a serious counterpart and had effectively used Oracle as a pawn in a grand strategy of self-promotion.
In the company’s FQ1 2026 earnings report, Oracle disclosed that it made $14.9 billion in total revenue, which was an 11% increase from the previous year. This performance was propelled by massive AI demand, leading to a huge acceleration in Oracle’s backlog. RPO reached an all-time high of $455 billion, which marked a huge 359% increase year-over-year. The company is aggressively pursuing the even larger AI inferencing market, using its position as the largest custodian of high-value private enterprise data.
Oracle Corporation offers products and services that address enterprise information technology environments worldwide.
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This article is originally published at Insider Monkey.
