Oracle’s (NYSE:ORCL) stock rose about 8% premarket on Tuesday after fiscal first quarter results beat estimates, which largely drew positive reactions from analysts.

JMP upgraded Oracle to Market Outperform with a $175 price target.

The company posted better-than-expected fiscal first quarter 2025 results, with non-GAAP EPS of $1.39 (consensus $1.32) and an operating margin of 42.9% (consensus 42.2%) on revenue of $13.31B (consensus $13.20B), up 7% year-over-year versus 3% last quarter, said a team of analysts led by Patrick Walravens.

The analysts upgraded the stock citing several reasons — firstly, noting that after 13 years of single-digit organic total revenue growth, Oracle is reaccelerating into the double digits with CEO Safra Catz commenting on the call that “we remain very confident and committed to full-year total revenue growth growing double digits.”

The analysts added that revenue growth is accelerating because Oracle has successfully evolved into a leading strategic cloud platform services provider, having moved up to the leader’s quadrant in Gartner’s Magic Quadrant over the past two years.

In addition, due to Co-Founder and Chief Technology Officer Larry Ellison’s prescient investments in large Nvidia GPU clusters, over 160 cloud regions including sovereign and national security regions, and a distributed and multi-cloud architecture, Oracle is poised to gain share in the cloud infrastructure services market and seems well-positioned to capture share of Gen AI-related spending for the infrastructure and cloud services market, according to the analysts.

Walravens and his team added that Oracle’s new strategic partnership with Amazon may help offset some of the pressure seen on the database business from hosted PostgreSQL solutions. The analysts said their research indicates that Oracle is poised to win additional and new workloads from several vendors, including a leading AI research organization, a major AI/ML platform provider, a major media company, and companies linked with the world’s richest person.

Morgan Stanley kept its Equal-weight rating on the stock but raised the price target to $145 from $125.

Analysts led by Keith Weiss said that bookings growth picked back up in the first quarter, along with Strategic Apps and Oracle Cloud Infrastructure, or OCI, revenues, indicating that key Oracle trend lines are showing positivity after the fourth quarter downturn.

However, absent an accounting change, gross margins see further pressure and billings growth still lags, adding risk to the EPS outlook.

Evercore reiterated its Outperform rating on Oracle and raised the price target on the shares to $175 from $160.

Oracle delivered solid first quarter results that were highlighted by strong IaaS (infrastructure as a service) growth (+46%) and a continued call from management that growth will accelerate over the course of fiscal year 2026, said analysts led by Kirk Materne.

The analysts believe that the bigger story is the strength in cloud backlog growth (Remaining Performance Obligations, or RPO, up 52% year-over) and the potential benefits to the cloud database business as the relationships with Azure, GCP, and now AWS, make it easier for customers to move their databases to the cloud.

BofA raised its price target on ORCL to $175 from $155 citing accelerating topline and EPS growth. However, the firm reiterated its Neutral rating on the Oracle, pending sustained current remaining performance obligation, or cRPO, growth acceleration and proof of leverage on ramping capital expenditure, or Capex.

The analysts said that Oracle reported another quarter of accelerating RPO growth as the company continues to transition to the cloud. However, cRPO moved the other way, decelerating to 18% from 33%.

The outlook was somewhat mixed, with expected fiscal second quarter revenue growth of 8% below BofA’s 9% estimate, the analysts stated. In addition, an aggressive second half ramp is required to achieve the fiscal 2025 outlook for double-digit growth, according to the analysts.

Meanwhile, Mizuho raised its price target on the stock to $185 from $170 and maintained its Outperform.