BMO Capital Markets Lifts Oracle to Outperform After Strong Earnings Report

Oracle Corporation (NYSE:ORCL) is one of the best next generation dividend aristocrat stocks.

BMO Capital Markets has turned optimistic on Oracle’s future, upgrading the stock from “Market Perform” to “Outperform.” Analyst Keith Bachman also raised his price target from $200 to $235, suggesting a potential upside of nearly 18%. Oracle shares have already climbed 20% this year, including a 13% jump following stronger-than-expected fourth-quarter results.

Bachman highlighted Oracle Corporation (NYSE:ORCL)’s $138 billion in remaining performance obligations (RPO), which surpassed the $132 billion consensus and reflected more than 100% year-over-year growth. RPO represents the total value of contracted services and products yet to be delivered, a key forward-looking indicator.

Bachman made the following comment:

“Hence, we think ORCL demand is durable over the next few years with some upside from very large partnerships. If Oracle is close to generating 100% RPO growth during FY26 and meeting revenue targets, we think shares will move higher, all else equal.”

Oracle Corporation (NYSE:ORCL) also projected its cloud business could grow more than 40% year over year and expects total revenue in fiscal 2026 to beat Wall Street forecasts. Bachman said these projections support stronger operating income growth. He noted that improvements in cloud database services and subscription revenue could act as further growth drivers, suggesting Oracle’s software segment, especially databases, is showing signs of recovery.

Oracle Corporation (NYSE:ORCL)’s dividend history is also strong, as it has paid regular dividends to shareholders since 2009. Currently, it offers a quarterly dividend of $0.50 per share and has a dividend yield of 0.93%, as of June 14.

While we acknowledge the potential of ORCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Dividend Stock Portfolio For Retirement and 10 Unstoppable Dividend Stocks to Buy Now

Disclosure. None.