Oracle initiated with a Perform at Oppenheimer

Oppenheimer initiated coverage of Oracle with a Perform rating and no price target. While the firm sees Oracle as a long-term beneficiary of software industry secular trends that include digital transformation and generative AI, it argues that the capex pace needed to “dislodge and surpass the larger hyperscalers may require a heightened level of spending,” resulting in a less cash-efficient model for Oracle. This could challenge the Street’s bullish expectation, which assumes flat capex spending growth in FY26, the firm added.