Oracle's Growth and Market Potential: Oracle's shares have surged nearly 74% in 2025, driven by high demand for data center capacity and a significant increase in remaining performance obligations (RPO) to $455 billion, indicating strong future revenue potential.
Cloud Infrastructure and AI Database: The company plans to expand its multicloud data centers and expects Oracle Cloud Infrastructure revenues to grow significantly, with the recently launched AI Database poised to enhance AI adoption among enterprises.
Financial Health and Projections: Despite a high debt load of approximately $112 billion, Oracle maintains investment-grade credit ratings and expects revenue growth of 16% year-over-year in fiscal 2026, with a target market capitalization of $1 trillion by 2028.
Strategic Focus for Success: To achieve its ambitious market cap goal, Oracle must effectively convert its backlog into revenue, manage its debt, and improve profitability while maintaining a strong forward price-to-earnings ratio.
Wall Street analysts forecast ORCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ORCL is 309.59 USD with a low forecast of 180.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
Wall Street analysts forecast ORCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ORCL is 309.59 USD with a low forecast of 180.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 173.880
Low
180.00
Averages
309.59
High
400.00
Current: 173.880
Low
180.00
Averages
309.59
High
400.00
Guggenheim
maintain
$400
2026-01-20
New
Reason
Guggenheim
Price Target
$400
AI Analysis
2026-01-20
New
maintain
Reason
Guggenheim contends that Oracle will likely maintain its investment grade credit rating, even as capex ramps up earlier than the Street and the bond rating agencies expect, and argues that Oracle remains "the best opportunity in the Software sector." The firm believes "even more strongly" that this is a "decade stock" that will grow EPS at hyper rates, and free cash flow will "eventually waterfall into very significant numbers," but investors will have to wait for that to happen. While "we keep calling this a decade stock (because we believe it is), we expect the numbers to be irrefutable in half that time and be obvious long before that," adds the analyst, who notes that Oracle remains his Best Idea with a $400 price target and Buy rating.
UBS
Buy
downgrade
$325 -> $280
2026-01-05
Reason
UBS
Price Target
$325 -> $280
2026-01-05
downgrade
Buy
Reason
UBS lowered the firm's price target on Oracle to $280 from $325. Oracle's 41% drop from mid-September highs reflects investor concerns about its outlook and OpenAI's impact on related stocks, the analyst tells investors in a research note. Despite this, UBS reaffirms its Buy rating given pending revenue growth, the ramp of Abilene data center capacity, potential reversal of cautious OpenAI sentiment in 1H26, and largely embedded credit/financing risks.
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RBC Capital
Rishi Jaluria
Sector Perform
downgrade
$250 -> $195
2026-01-05
Reason
RBC Capital
Rishi Jaluria
Price Target
$250 -> $195
2026-01-05
downgrade
Sector Perform
Reason
RBC Capital analyst Rishi Jaluria lowered the firm's price target on Oracle to $195 from $250 and keeps a Sector Perform rating on the shares. 2026 is likely to be a year when AI tailwinds become more evident for companies well positioned for enterprise AI adoption, while less prepared peers may remain pressured by the "AI is the death of software" narrative, the analyst tells investors in a research note. Enterprise spending appears to be stabilizing and improving in select areas, with GenAI driving innovation even as management teams remain conservative in early 2026 guidance, the firm says.
Phillip Securities
Buy
downgrade
$350 -> $344
2025-12-14
Reason
Phillip Securities
Price Target
$350 -> $344
2025-12-14
downgrade
Buy
Reason
Phillip Securities lowered the firm's price target on Oracle to $344 from $350 and keeps a Buy rating on the shares. The firm increased its fiscal 2026 capital expenditure forecast for Oracle to $50B from $35B. It remains "bullish on Oracle as a niche OCI provider and a full-stack AI provider."
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
