Phillip Securities Raises Oracle 2026 Capex Forecast to $50B Highlighting Confidence in OCI and Full-Stack AI Leadership

Oracle Corporation (NYSE:ORCL) is one of the most active US stocks to buy according to analysts. On December 15, Phillip Securities lowered the firm’s price target on Oracle to $344 from $350 and maintained a Buy rating on the shares. The firm raised its 2026 capital expenditure outlook for Oracle from $35 billion to $50 billion. The increased spending reflects the firm’s continued confidence in the company’s dual role as a specialized cloud provider/OCI and a comprehensive full-stack AI leader.

Earlier on December 11, RBC Capital also lowered the firm’s price target on Oracle to $250 from $310 and kept a Sector Perform rating on the shares. This sentiment came out as Oracle’s FQ2 2026 results were a mixed bag: robust cloud growth and strong Remaining Performance Obligations/RPO were dampened by high capital spending and negative free cash flow.

Phillip Securities Raises Oracle 2026 Capex Forecast to $50B Highlighting Confidence in OCI and Full-Stack AI Leadership

In its FQ2 report, Oracle highlighted a 13% year-over-year increase in total revenue to $16.1 billion. The primary growth engine was the cloud division, which saw revenue surge 33% to $8 billion, now accounting for half of Oracle’s total business. Within this segment, OCI revenue jumped 66% to $4.1 billion, specifically fueled by a 177% explosion in GPU-related revenue. Other strong performers included Autonomous Database revenue (up 43%) and Cloud Applications, which reached $3.9 billion (up 11%).

Looking forward to FQ3, Oracle projects total cloud revenue growth between 37% and 41% and total revenue growth between 16% and 18% in constant currency.

Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments worldwide.

While we acknowledge the potential of ORCL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ORCL and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.