1、M FoundationSee embedded Slide PresentationAnother Look At the Variables Within Oracles Growth Equation.The fundamental business at Oracle is quickly shifting toward GPU Data Center Operator,with the company taking a commanding lead in that market with massive contract additions from customers like

2、OpenAI,Meta and xAI.More specifically,with F1Q26 results,Oracle provided updated expectations for Oracle Cloud Infrastructure(OCI)from FY26-FY30,expecting OCI to scale from$18 billion of revenue in FY26,to$144 billion of revenue by FY30.In the context of our growth framework for Oracle,achievement o

3、f these targets implies OCI scales to 72%of FY30 revenue(from 17%in FY25),and that the AI portion of OCI grows to 60%of overall FY30 revenue(from 5%in FY25).In this note,we a)revise our model for F1Q26 results,b)give credit for achievement of OCI revenue targets in our out year growth framework,3)as

4、sume Oracle can achieve significant opex efficiencies as the GPUaaS business scales,and d)revise our capex and debt estimates in support of this revenue opportunity.The conclusion,a 28%revenue CAGR through FY30 which yields$16.50 in non-GAAP EPS(a 20%+CAGR),despite a material erosion of operating ma

5、rgins,which supports an increase in our price target to$320.With this growth already largely priced in the shares,we remain Equal-weight.What Did We Know?Oracles legacy FY29 revenues targets were positioned for meaningful upside given recent OCI AI IaaS wins.In FQ425,Oracle outlined expectations for

6、 RPO growth of 100%+YoY,implying exit FY26 backlog of$280 billion.Assuming 1/3rd of this was current,Oracle would exit FY26 with almost 90%of their$104 billion FY29 target already in backlog suggesting existing FY29 targets were positioned for meaningful upside.What Have We Learned?Oracles forward O