BNP Paribas analyst Stefan Slowinski believes that Oracle (ORCL) will increase its capital spending to a range of $80 billion to $100 billion in the upcoming quarterly report scheduled for today, June 10, after the market close. Just a couple of years ago, this figure was $6.9 billion. This significantly increased forecast is primarily due to the firm working on building the world’s largest AI infrastructure — called Project Stargate — alongside OpenAI and SoftBank (SFTBY). Oracle is helping develop campuses for this project across the U.S. and beyond, fully supported in its endeavors by President Donald Trump and the federal government.
Investors previously had concerns about how Oracle would pay for the massive spending. But with OpenAI raising a whopping $122 billion, Oracle being prepaid by its customers, and Abilene (Stargate’s biggest data center) expected to be completed by the first quarter of 2027, these concerns have somewhat eased. ORCL stock has also fared relatively well in the last three months, although it's nowhere near its September 2025 highs.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
Slowinski also hinted toward a potential risk with new CFO Hilary Maxson taking over in the next quarter for the first time, as not knowing what her approach will be adds a bit of uncertainty. Even bigger developments worth noting are Oracle's layoffs and share issuance. Oracle is reportedly laying off as many as 30,000 employees to improve cash flow for AI data centers. Although Slowinski expects the actual number to be lower, this signals a huge shift in the way the firm is looking to operate moving forward. Additionally, Oracle has announced a $20 billion at-the-market (ATM) equity issuance. Existing shareholders will be keen on knowing when that comes into effect.
About Oracle Stock
Oracle is a U.S. technology company that operates globally, offering database software and cloud computing services. Its key products include the Oracle Database, Oracle ERP, and Oracle Cloud Infrastructure. Serving practically every major industry, the firm is currently focused on building out massive AI infrastructure.
Oracle is working with OpenAI and SoftBank to create data centers across the U.S. and is now expanding internationally as well, with ongoing projects in Norway, the U.K., and the United Arab Emirates (UAE). Founded in 1977, the company is headquartered in Austin, Texas. In September 2025, the firm announced that Clay Magouyrk and Mike Sicilia would become co-CEOs. Meanwhile, Larry Ellison continues to operate as Executive Chairman and Chief Technology Officer.
The price of ORCL stock peaked in September 2025 at a 52-week high of $345.71. Currently, shares trade 40% below that level. The AI trade has moved to other companies in the AI value chain, but all of that could change once Oracle's earnings report comes out on June 10.
www.barchart.com Cloud Revenue Is in the Spotlight Heading Into Earnings
Oracle reported third-quarter fiscal 2026 earnings on March 10. Revenue increased 22% year-over-year (YOY) to $17.2 billion, while non-GAAP EPS rose 21% YOY to $1.79. According to the company, Q3 2026 marked the first quarter in 15 years where organic revenue and non-GAAP EPS both grew 20% or more. In both of these metrics, Oracle also surpassed analysts’ consensus estimates of $16.91 billion in revenue and $1.70 in EPS. Operating expenses increased by nearly $2 billion in Q3, but the surge in total revenue meant that operating income and net income still jumped 25% and 27%, respectively. The largest gain came through Oracle's cloud revenue, which saw 44% YOY growth.
For the upcoming Q4 earnings report, the company expects to grow revenue by 19% to 21%, with cloud revenue growing a healthy 46% to 50%. Non-GAAP EPS is expected to be between $1.96 and $2 per share, which would be an improvement of 15% to 17% YOY. Management claims to be outperforming with its fiscal 2026 revenue and earnings, and the fiscal 2027 revenue forecast was also hiked to $90 billion in the Q3 report.
What Do Analysts Say About Oracle Stock?
Analysts have been revising their price targets on ORCL stock upward since April after a flurry of downward revisions in Q1. For example, Oppenheimer analyst Brian Schwartz raised the firm's price target on Oracle from $210 to $235 while keeping an “Outperform” rating on May 12. Oppenheimer believes ORCL stock is a top pick due to encouraging developments during the current quarter. The company’s restructuring announcement, combined with strong technology infrastructure spending, should translate to strong Q4 2026 results.
So far this month, at least two analysts have come up with ORCL stock price targets north of $300, suggesting that sentiment isn’t just changing but could significantly shift if the June 10 earnings report is impressive. There is a good possibility that the market will rerate ORCL stock after the report, as its depressed prices have mainly been due to negative sentiment rather than fundamental issues. On May 13, Wedbush raised its price target to $275 and reiterated an “Outperform” rating. The firm discussed the sentiment issue, saying investor sentiment regarding Oracle’s outlook is negative. The market is paying too much attention to the company’s current spending levels and not enough to the strong customer demand supporting those investments.
www.barchart.com On the date of publication, Jabran Kundi 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.
More news from Barchart
Oklo Buys Precision Manufacturing Company ARMEC to Speed Up Reactor Deployment. What This Means for OKLO Stock. Oracle Earnings Could Reveal a Massive $100 Billion Spending Surge. Here Is Why You Should Still Buy ORCL Stock. Cisco Is Up 61% in 2026. It’s One of 3 Dividend Stocks Quietly Riding the AI Boom. This Analyst Just Upgraded FuelCell Stock. Here’s Why.