1、 EQUITIES SOFTWARE ORACLEORACLE CORPORATIONCORPORATION OUTPERFORM PRICE*USD313.0 TARGET PRICE USD430(UPSIDE 37%)TARGET PRICE EPS 05/26e EPS 05/27e 14%unchanged 3%Oracle AI World FAD Postview another upgrade as AI ramps 17 OCTOBER 2025 Securities Research Report Production time:07:42*(London time)Res

2、earch Analysts&Publishing EntitiesResearch Analysts&Publishing Entities We attended Oracles Financial Analyst Day session in person at AI World in Las Vegas.Shares pared back most initial gains as we suspect Oracles new EPS outlook was shy of some of the more bullish investor expectations.Neverthele

3、ss,Oracle remains under owned with only 28%of funds overweight,leaving room for further upside,in our view,for this AI powerhouse.Tackling the key debates head on,highlighted by 30-40%AI gross margins As expected,Oracles Financial Analyst Day addressed the concerns that emerged from the companys blo

4、ckbuster FQ126 results only five weeks prior,namely around customer concentration and AI profitability.Oracle revealed its AI infrastructure business carries 30-40%gross margins,even for its OpenAI contract(consistent with our expectation outlined in our FAD preview).Moreover,Oracle signed seven new

5、 contracts QTD with four non-OpenAI customers,totaling$65bn in TCV(and bringing total RPO to$500bn+),highlighting broadening demand beyond OpenAI.While management offered sparse details around financing/capex,we were broadly encouraged management appears committed to its investment grade credit rati

6、ng.New long-term targets include an upgraded revenue outlook and$21 EPS by FY30 Only five weeks after Oracles FQ126 results where management outlined a$144bn FY30 OCI revenue target,the company has already upgraded its outlook to$166bn given the continued strength in demand(this also includes$20bn o