Citigroup released a research report indicating that Oracle (ORCL.US) had a mixed performance in its second fiscal quarter, impacted by Forex factors and capacity constraints, with major operational indicators falling short of expectations, and the company also underperformed expectations for the third fiscal quarter. However, excluding Forex and other non-operational adverse factors, the quarter's performance looks more in line with expectations, with growth in the cloud infrastructure business OCI accelerating and the current remaining performance obligations (cRPO) Orders increasing by 14% year-on-year.

Citigroup's forecast for Oracle's fiscal year 2025 remains largely unchanged, maintaining a 'Neutral' rating. Based on the forecasted PE of about 27.3 times for fiscal year 2026, the Target Price is raised from $157 to $194.