Oracle Corp (NYSE:ORCL, XETRA:ORC)’s latest outlook as an early sign that enterprise software vendors are beginning to demonstrate tangible returns from artificial intelligence investments, according to analysts at Wedbush.

Earlier this week Oracle delivered stronger-than-expected results and raised its fiscal 2026 revenue guidance to roughly $67 billion, a move that Wedbush views as signaling the start of meaningful AI-related monetization.

The firm described the update as an important “first step” for the software industry in countering what it calls the “AI Ghost Trade,” a market narrative suggesting generative AI platforms could significantly reduce demand for traditional enterprise software.

Investors have been wary of Oracle’s spending on data center expansion to support AI workloads, but Wedbush said the company’s performance suggests those investments may soon translate into revenue growth.

The analysts added that the market appears to be “baking in a worst-case scenario” for software companies, a view they consider “extremely overblown.”

Concerns have intensified as AI developers such as Anthropic and OpenAI release increasingly capable tools designed to automate complex tasks. Those advances have prompted speculation that enterprise technology budgets could shift toward AI initiatives at the expense of conventional software.

However, Wedbush argued that scenario underestimates the complexity of modern corporate technology environments. Enterprise systems, the firm said, are built on extensive layers of data infrastructure, security frameworks, and operational workflows that are difficult to replace.

“The fictional concept being debated in this market is that enterprise software and cybersecurity will not be needed by enterprises in the future,” the analysts wrote, referring to claims that companies could sharply reduce IT spending by relying primarily on AI tools.

“While this sounds like a good thesis on paper or on a whiteboard, the reality is dramatically different,” they wrote.

Based on industry checks across the AI landscape, Wedbush noted that many technology vendors are already embedding AI capabilities within their existing platforms, a dynamic the firm believes is not fully reflected in current valuations.

Rather than replacing enterprise software, the analysts expect AI systems and large language models to work alongside employees and established applications to improve productivity and operational efficiency.

The key question for investors, according to Wedbush, is how quickly software providers can integrate AI-driven capabilities into their platforms and workflows.