Oracle Breaks Ground on $4.5 Billion Nashville HQ as Analysts Weigh In
Oracle has broken ground on its $4.5 billion Nashville headquarters. Meanwhile, Bernstein reaffirmed an Outperform rating with a $325 target, highlighting cash flow and long-term artificial intelligence prospects.
Oracle Corporation has officially begun construction on its $4.5 billion global headquarters in Nashville, Tennessee. The 78-acre campus on the Cumberland River's East Bank is planned to feature 23 buildings spanning 759,838 square feet of office space, alongside retail, a Nobu hotel, and community infrastructure. The first buildings are projected to open by 2030.
On Wednesday, Bernstein reaffirmed an Outperform rating on Oracle with a $325 price target. Analyst Mark Moerdler noted that concerns regarding elevated capital spending overshadow the company's long-term artificial intelligence prospects. Moerdler stated that Oracle is approximately 18 months away from positive free cash flow, which he projects in the second half of fiscal 2028 without requiring outside financing.
Company management has previously signaled a similar timeline for cash generation. Chief Financial Officer Hilary Maxson indicated that Oracle expects positive cash flow in the second half of fiscal 2028 and over $30 billion in free cash flow in fiscal 2029, dependent on capital expenditures reaching a peak. The company also intends to add 7 gigawatts of data-center capacity.
Wall Street opinions on the software maker present a mixed picture. MarketBeat tracks an average rating of Moderate Buy with a $249.27 target price, while Barchart lists a mean target of about $243. Conversely, Zacks Investment Research rates Oracle a Zacks Rank #3 (Hold). Zacks expects current-quarter earnings of $1.88 per share, representing a 16.8% decline from the prior year, alongside full-year fiscal earnings of $8.12 per share.
Institutional investors recently rebalanced their positions in the enterprise software provider. Third-quarter filings show Maryland State Retirement & Pension System increased its stake by 13.3% to 104,816 shares. Meanwhile, King Luther Capital Management Corp trimmed its position by 12.2% to 1,294,089 shares, and Riverbridge Partners LLC lowered its holdings by 64.9% to 4,800 shares.