Do Wall Street Analysts Like Oracle Stock?

Valued at a market cap of $408.6 billion, Oracle Corporation (ORCL) is one of the world's largest enterprise software and cloud computing companies, providing database software, cloud infrastructure, and business applications to organizations across virtually every industry. Headquartered in Austin, Texas, Oracle is best known for its flagship relational database management system, which has long been a cornerstone of enterprise IT.

Oracle has endured a difficult stretch over the past year, significantly lagging the broader market. The stock has slumped 47.3% compared to the S&P 500 Index’s ($SPX) 22.2% surge. The trend has extended into 2026, with ORCL down 25.2%, while the benchmark has gained 13%.

Focusing closely, the stock has also lagged the State Street Technology Select Sector SPDR ETF (XLK), which has risen 42.5% over the past year and 29.8% in 2026.

Oracle has lagged the broader market over the past year as investors grew increasingly concerned about the near-term impact of its aggressive AI and cloud infrastructure investments. While the company continues to benefit from growing demand for its cloud services, heavy capital spending has weighed on free cash flow expectations and raised concerns about profitability. At the same time, Oracle's long-term revenue growth has trailed many of its software peers, prompting investors to question whether its elevated AI investments will generate sufficient returns. 

On the bright side, on July 23, Oracle secured a landmark up to $7 billion, 10-year enterprise software agreement with the U.S. Department of Defense to consolidate on-premises software licenses under a single contract. The contract underscores Oracle's deepening relationship with the U.S. government and strengthens its position as a key provider of mission-critical enterprise software.

For the current year ending in May 2027, analysts expect ORCL’s EPS to rise 2.5% year over year to $6.47. Moreover, the company has surpassed analysts’ consensus estimates in each of the past four quarters.      

Among the 44 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 33 “Strong Buy” ratings, one “Moderate Buy,” nine “Holds,” and one “Strong Sell” rating.     

On July 23, Guggenheim reaffirmed its "Buy" rating and $400 price target on Oracle after investor meetings with company executives, expressing confidence in the company's AI infrastructure strategy. Management said Oracle's data center expansion is now at a materially de-risked stage, with reported construction delays being isolated rather than widespread and having no meaningful financial impact, reinforcing the firm's positive long-term outlook.

ORCL’s mean price target of $252.09 indicates a premium of 73% from the current market prices.