Wall Street analysts maintain bullish forecasts oracle (Nasdaq: ORCL) stock For the next 12 months, though, stocks struggle in 2026 with a 25% year-to-date decline.
This comes as technology The company continues to accelerate its shift to cloud AI infrastructure, delivering strong third-quarter fiscal 2026 results alongside major layoffs and mounting legal challenges.
It is worth noting that Oracle I mentioned $17.2 billion in revenue, up 22% year over year, with cloud revenue up 44% and OCI up 84%, while earnings per share beat expectations. The backlog jumped to $553 billion, and management raised its fiscal year 2027 revenue forecast to $90 billion.
However, heavy AI investmentwhich is expected to reach $50 billion in CapEx, has put pressure on cash flow and increased debt.
Meanwhile, Oracle has begun widespread layoffs affecting up to 30,000 employees to cut costs, while also facing lawsuits from investors over its AI spending disclosures.
Regarding stock price movement, ORCL shares closed the last trading session at $146, up 0.76% for the day.
Oracle stock price prediction
Regarding expectations, analysts said: TipRanks Our consensus estimates point to a significant rise over the next year. The stock carries a “Strong Buy” rating based on 32 analysts.
They project an average 12-month price target of $245, suggesting a potential upside of ~67.45% from the current valuation. The highest price target is $400, while the lowest estimate is $149.
It is worth noting that 27 analysts recommended a “buy”, five of them suggested a “hold”, and none of them issued a “sell” rating.
Among analysts, Barclays’ Raimo Lencho said ongoing job cuts at Oracle are expected to boost cash flow and support strong expansion in AI infrastructure, while maintaining an “overweight” rating with a price target of $240. The analyst noted that the layoffs were largely expected by the market and reflect efforts to improve efficiency, especially as Oracle lags behind its peers in profit per employee. With limited headcount growth and tighter cost controls, Barclays expects Oracle’s revenues to triple in the coming years, driven by expanding demand for artificial intelligence and operational leverage.
On the other hand, Mark Moerdler, a Bernstein analyst, said Oracle’s strong performance and guidance in the third quarter eased investor concerns, highlighting improved business economics and increased interest in its AI strategy. Although shares are trading well below their highs, Oracle is viewed as undervalued, supported by upward earnings revisions and a strong position for its AI data center and core database businesses to capitalize on growing demand for AI.
Meanwhile, BofA Securities returned coverage on Oracle with a “buy” rating and a $200 price target, citing expected growth in demand for AI infrastructure and confidence in the company’s long-term strategic direction.
JMP Securities maintained its “Market Outperform” rating, citing Oracle’s significant accretion as a key growth driver and forecasting strong expansion of its cloud infrastructure business in the coming years.
