Oracle Corporation (ORCL) shares have come under pressure recently, slipping 18.98% in the past five trading sessions amid a broader market sell-off. As the company heads into its quarterly earnings on Wednesday, June 10, after market close, BNP Paribas is closely watching the print and expects Oracle to raise its capital spending forecast, adding another key focus for investors.
Analyst Stefan Slowinski noted that Oracle continues to push forward despite financing pressures, while Bring Your Own Cloud (BYOC) customer prepayments support balance sheet stability. Meanwhile, OpenAI's $122 billion raise underscores rising demand for compute, and Crusoe's Abilene project remains on track to complete by July, keeping expansion plans firmly in motion.
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He also noted that Q4 FY2026 marks the first quarter under new CFO Hilary Maxson, and the market is still trying to decode her approach, as investors remain uncertain about whether Oracle will tighten its guidance stance following a 70% share price surge from April lows.
Slowinski maintains a $283 price target on Oracle’s shares and expects FY2027 capital expenditure guidance to land between $80 billion and $100 billion, as the company accelerates Stargate campus buildouts and directs more spending toward Nvidia Corporation (NVDA) GPUs.
About Oracle Stock
Headquartered in Austin, Texas, Oracle is a global enterprise technology company that delivers cloud applications, database solutions, and infrastructure services.
The company commands a market cap of nearly $609.2 billion, offering Enterprise Resource Planning (ERP), Human Capital Management (HCM), Supply Chain Management (SCM), and Enterprise Performance Management (EPM) through its Oracle Fusion suite. It also delivers Oracle Database, MySQL Database (MySQL), and Java for enterprise development use cases.
The company extends its offerings into artificial intelligence (AI), Internet of Things (IoT), and autonomous cloud infrastructure services while also providing cloud compute, storage, networking, hardware systems, and consulting services that support enterprise customers across global industries.
On the price performance front, ORCL stock has climbed 11.87% over the last 52 weeks while still managing a marginal 1.67% rise year-to-date (YTD) even as broader sentiment swings back and forth. The real surprise shows up in the recent momentum where ORCL stock has sprinted ahead with a 30.75% gain over the last three months.
www.barchart.com On valuation, ORCL stock is currently trading at 33.82 times forward adjusted earnings and 9.06 times sales, which places it firmly above both industry averages and its own five-year historical multiples. This signals a premium pricing environment that investors continue to accept.
Moreover, Oracle has increased its dividend for 11 consecutive years and maintains an annual payout of $2 per share, which translates into a 0.94% dividend yield. The company’s most recent dividend of $0.50 per share went out on April 24 to shareholders of record as of April 9.
Oracle Surpasses Q3 Earnings
On March 10, Oracle reported its Q3 FY2026 results, which delivered an exceptional performance. Revenue reached $17.2 billion, marking a 21.7% rise year-over-year (YOY) and beating the $16.91 billion estimate.
Cloud and AI-related infrastructure demand powered the momentum and pushed growth into a higher gear. Cloud revenue came in near $8.9 billion and rose 43.5% YOY, which reinforced Oracle Cloud Infrastructure as a central growth engine.
In addition, profitability improved in a meaningful way. Oracle posted non-GAAP EPS $1.79 which rose about 21.8% from the prior year quarter and beat the $1.70 estimate. Net income climbed 26% to around $3.7 billion as operating leverage strengthened even while investment spending on AI data center capacity continued.
The quarter stood out because both revenue and adjusted earnings rose above 20%, which signals a clear step change in Oracle’s growth profile.
The most eye-catching figure came from Remaining Performance Obligations (RPO), which jumped 325% YOY to $553 billion. Large multi-year AI infrastructure contracts drove the surge and strengthened visibility into future revenue streams while reinforcing confidence in sustained enterprise AI demand.
Oracle issued guidance for Q4 and now projects revenue growth of roughly 18% to 20% YOY, with adjusted EPS expected in the range of $1.92 to $1.96. And, the company has reaffirmed its FY2026 revenue outlook of $67 billion while lifting its FY2027 revenue target to around $90 billion, signaling confidence in continued AI-driven momentum.
On the other hand, analysts expect Q4 FY2026 EPS to grow 17% YOY to $1.58. For full FY2026, they project a bottom-line growth of 38.4% YOY to $6.09, while FY2027 estimates point to 3.9% growth to $6.33.
What Do Analysts Expect for Oracle Stock?
Several analysts have raised their price targets. Evercore ISI analyst Kirk Materne lifted his price target on ORCL stock to $245 from $220 and reiterated a “Buy” rating. Meanwhile, Oppenheimer analyst Brian Schwartz also reaffirmed a “Buy” rating on ORCL stock and raised his price target to $275 from $235.
Wall Street has assigned Oracle an overall rating of "Strong Buy." Out of 43 analysts covering the stock, 33 recommend "Strong Buy," one recommends "Moderate Buy," eight suggest "Hold," while one flags a "Strong Sell."
To that end, the stock’s average price target of $254.43 represents potential upside of 25%. Meanwhile, the Street-High target of $400 suggests a gain of 96.5% from current levels.
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www.barchart.com On the date of publication, Aanchal Sugandh 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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