Morgan Stanley's research report pointed out that Oracle's (ORCL.US) contract with 30 OCI customers for 12.5 billion dollars in artificial intelligence bookings offset the negative impact of lower-than-expected Q4 revenue and EPS as well as significantly slower growth of SaaS applications. Under the support of the overall environment for hardware suppliers participating in AI construction, it seems to provide support for the company's positive trend.

According to the bank, the management stated in last quarter's discussion that it is expected that the total revenue growth in the 2025 fiscal year will accelerate, prompting the company to reiterate its financial goals for the 2026 fiscal year. The company also stated in the fourth quarter that it expects to achieve double-digit growth for the full year, and the growth for each quarter will also improve.

The report also mentioned that the management currently expects the capital expenditures in the 2025 fiscal year to double after the new artificial intelligence transactions signed in Q4. The company's chairman and chief technology officer Larry Ellison mentioned in a conference call that the company is building a 200-megawatt data center and will build a gigawatt data center in the longer term future.

Morgan Stanley raised the company's target price from $115 to $125 and gave a "synchronised with the market" rating. (vc/u)

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