Oracle Corporation (ORCL) investors are heading into a pivotal week as the tech giant prepares to report fiscal fourth-quarter 2026 earnings on June 10 after the market closes. With Oracle riding a powerful wave of AI-driven cloud demand, Wall Street will be watching closely for updates on Oracle Cloud Infrastructure growth, AI backlog expansion, and management’s outlook for fiscal 2027.
The upcoming report could play a major role in determining whether Oracle can maintain its momentum.
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About Oracle Stock
Best known for its pioneering relational database software and enterprise tools, Oracle Corporation has evolved into a powerhouse in cloud infrastructure, SaaS applications, hardware systems, and consulting services. Headquartered in Austin, Texas, the firm serves a global client base, and with a market cap of $614.6 billion, the company ranks among the world’s top software and cloud computing firms.
Oracle stock has delivered strong longer-term gains despite recent volatility tied to broader AI infrastructure concerns and heightened investor expectations ahead of earnings. Shares of Oracle have climbed 21.86% over the past 52 weeks and are still up 8.8% year-to-date (YTD), reflecting continued investor optimism around the company’s rapidly expanding cloud and AI businesses.
However, the stock has recently come under pressure. Oracle shares plunged 9.6% on June 5, marking one of the stock’s sharpest single-day declines this year, as investors reacted to broader weakness in AI-related technology names following Broadcom's (AVGO) earnings report and concerns about whether AI growth expectations had become too aggressive.
Over the past five trading days, Oracle stock has declined 14.54%, highlighting the elevated volatility surrounding major AI infrastructure plays ahead of Oracle’s fiscal fourth-quarter 2026 earnings report on June 10.
www.barchart.com The stock is currently trading at a premium compared to peers and its own historical average at 37.40 times forward earnings.
Q3 Results Demonstrate Cloud Momentum and Path to a Steady Q4
Oracle Corporation reported its fiscal third-quarter 2026 results on Mar. 10, after the market close.
The company delivered a strong top-line performance, with revenue of $17.2 billion, up 22% year-over-year (YOY). This marked a clear acceleration in growth, driven primarily by robust demand for cloud and AI-related infrastructure. Cloud revenue reached roughly $8.9 billion, increasing 44% YOY, underscoring the central role of Oracle Cloud Infrastructure in the company’s growth narrative.
Also, profitability metrics showed meaningful improvement. Oracle reported non-GAAP earnings per share of $1.79, up about 21% from the prior-year quarter and above the consensus estimate. Net income increased to around $3.7 billion, reflecting solid operating leverage even as the company continues to invest heavily in AI data center capacity.
Notably, this was one of the rare quarters where both revenue and adjusted earnings grew above 20%, highlighting a step-change in Oracle’s growth profile.
The most striking metric in the quarter was Oracle’s Remaining Performance Obligations (RPO), which surged to $553 billion, up 325% YOY, supported by large multi-year AI infrastructure deals. This provided strong visibility into future revenue streams and reinforced management’s confidence in sustained growth driven by enterprise AI adoption.
Furthermore, Oracle issued guidance for the fourth quarter, projecting revenue growth of roughly 18% to 20% YOY and adjusted EPS in the range of $1.92 to $1.96. Further, the company maintained its fiscal 2026 revenue outlook of $67 billion, while raising its longer-term fiscal 2027 revenue target to around $90 billion, signaling confidence in continued momentum from AI-driven demand.
Analysts remain optimistic as they predict EPS to be $6.08 for fiscal 2026, up 38.2% YOY, and surge by another 4% annually to $6.32 in fiscal 2027. Moreover, the consensus EPS estimate of $1.58 for the fourth quarter indicates a rise of 17% YOY.
What Do Analysts Expect for Oracle Stock?
Recently, Guggenheim reiterated its “Buy” rating and $400 price target on Oracle ahead of the company’s fiscal fourth-quarter earnings report on June 10, citing strong cloud demand and growing AI infrastructure momentum. Guggenheim expects Oracle to significantly ramp capital expenditures to around $75 billion in fiscal 2027 as the company aggressively expands AI and cloud infrastructure capacity, even though that could pressure free cash flow in the near term.
Also, Mizuho reiterated its “Outperform” rating and $320 price target on Oracle, expecting strong results driven by accelerating AI and cloud demand. Mizuho sees the upcoming quarter as a major catalyst that could strengthen confidence in Oracle’s projected revenue acceleration to 34% in fiscal 2027. The firm also expects Oracle to provide clearer guidance on capital spending, financing needs, and free cash flow, with analysts projecting free cash flow could turn positive by fiscal 2029 as AI investments begin generating stronger returns.
Oracle stock has a consensus “Strong Buy” rating overall. Among the 43 analysts covering the tech stock, 33 recommend a “Strong Buy,” one gives a “Moderate Buy,” eight analysts stay cautious with a “Hold” rating, and one gives a “Strong Sell” rating.
While its average price target of $252.30 indicates an upside of 18%, Guggenheim’s Street-high target price of $400 suggests that the stock could rally as much as 87.1%.
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www.barchart.com On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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