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.

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.

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