Shares of Oracle gained 2% in morning trading to reach $157.13, as Wall Street firms issued updated research notes and investors positioned themselves ahead of the company's upcoming quarterly report.

The advance extends Thursday's strong 5.7% rally, which was triggered by Federal Reserve Governor Christopher Waller's comments favoring stable interest rates pending additional inflation data. The development carries particular significance for Oracle given the company's substantial debt load, accumulated to finance its artificial intelligence data center expansion. Because Oracle has financed much of that buildout with borrowing rather than cash flow, its equity has become unusually sensitive to interest-rate expectations relative to large-cap software peers.

Morgan Stanley Lifts Target to $210

Morgan Stanley raised its price objective to $210 from $207 while maintaining an Equalweight rating. The adjustment reflects an improved margin forecast for Oracle's GPU-as-a-Service operations. The firm applied approximately 19 times its calendar 2028 non-GAAP earnings per share projection of $10.98 in its valuation model.

Oracle shares remain roughly 20% lower year-to-date, trading below historical valuation benchmarks. The company's PEG ratio stands at 0.77, with InvestingPro identifying the equity as undervalued relative to near-term earnings growth potential. Oracle's gross profit margin has held at 66% over the trailing twelve months.

Wall Street Weighs In Before Results

Bernstein reaffirmed its Outperform rating and indicated Oracle may be nearing the end of its capital-raising requirements — a notable shift for a company that has relied heavily on borrowing to fund its AI infrastructure ambitions. Bernstein also noted that Oracle has the potential to become the third-largest hyperscaler, a claim that would place Oracle alongside Amazon Web Services, Microsoft Azure, and Google Cloud, the three providers that currently dominate cloud infrastructure.

Jefferies kept its Buy recommendation but lowered its price target to $290 from $320, identifying 115% OCI revenue growth and a 41% operating margin as the critical metrics to watch.

Mizuho likewise reaffirmed an Outperform rating with a $320 target, highlighting an expanded agreement with the Department of Veterans Affairs. The contract's maximum value rose by approximately $17 billion and may run through May 2031.

September 10 Earnings Preview

Options market activity suggests a possible 10% price swing in either direction when Oracle reports its Q1 fiscal 2027 results on September 10, 2026, after the market close.

Broader equity markets are offering little support today: the S&P 500 is down 0.1% while the Nasdaq trades marginally higher, indicating Oracle's move is being driven by company-specific developments.

Execution challenges and constrained free cash flow across the forecast horizon were the primary concerns Morgan Stanley cited in justifying its Equalweight rating despite the higher target.

Jefferies is monitoring OCI expansion and margin trends as the clearest indicators of whether Oracle's AI data center capital deployment is producing tangible results.

The enhanced Veterans Affairs contract, which Mizuho emphasized this week, includes optional extensions that could extend the arrangement through May 2031, giving Oracle a durable government revenue stream.