Shares of the Redwood City, Calif, company were climbing 3.9% to $59.55 in premarket trading.
Oracle reported 2% growth in revenue to $9.4 billion, while earnings rose 16% to 72 cents a share. Analysts were expecting sales of $9.17 billion and earnings of 67 cents.
Barclays analyst Raimo Lenschow raised his price target to $59 from $52, saying in a note to investors that "Oracle delivered a surprisingly strong beat and growth on licenses despite the continued macro uncertainty."
"Short-term, shares may react positively and re-rate due to the license beat, but we believe investors would like to see more tangible evidence of accelerating recurring segment growth for a sustained rally," Lenschow said, who keeps an equal weight rating on the stock.
BMO Capital Markets Keith Bachman, who has a market perform rating on Oracle, raised his price target to $63 from $57.
Bachman said the quarter was “reasonable,” but said he is “not convinced that license growth is durable,” despite easy comparisons ahead. The analysts said he is staying on the sidelines “until we have improved conviction that Oracle can break free of ~2% y/y growth”
Credit Suisse analyst Brad Zelnick, who has an outperform rating on the stock, said "Oracle reported solid F1Q21 results, with healthy cloud momentum, accompanied by surprising."
Zelnick raised his price target to $66 a share, up from $62, saying that risks facing Oracle include "ongoing COVID-19 uncertainty, related deal slippage, execution risks, and slower Autonomous (Database) adoption".