Oracle (NYSE:ORCL) Given New $195.00 Price Target at BMO Capital Markets

Key Points

• BMO Capital Markets lowered Oracle’s price target from $220 to $195 but maintained an “outperform” rating, implying 27.31% upside from the prior close.
• Oracle exceeded quarterly expectations, reporting $1.92 in EPS versus $1.74 expected and $19.34 billion in revenue, up 29.6% year over year. Analysts’ consensus rating remains “Moderate Buy,” with an average price target of $256.30.
• Despite strong AI and cloud growth, investors face risks from Oracle’s costly AI infrastructure expansion, negative free cash flow, high leverage and potential data-center construction delays.

Oracle (NYSE:ORCL - Get Free Report) had its price target reduced by investment analysts at BMO Capital Markets from $220.00 to $195.00 in a research report issued to clients and investors on Friday, Briefing.com reports. The brokerage presently has an "outperform" rating on the enterprise software provider's stock. BMO Capital Markets' price objective would indicate a potential upside of 27.31% from the stock's previous close.

Several other equities research analysts have also recently issued reports on the company. Stifel Nicolaus set a $200.00 target price on Oracle in a report on Friday. Citizens Jmp restated a "market outperform" rating and set a $285.00 target price on shares of Oracle in a research report on Wednesday. Morgan Stanley upped their price objective on Oracle from $207.00 to $210.00 and gave the company an "equal weight" rating in a research report on Friday, September 4th. BTIG Research restated a "buy" rating and issued a $400.00 price target on shares of Oracle in a research report on Friday, June 5th. Finally, DA Davidson increased their target price on shares of Oracle from $200.00 to $225.00 and gave the company a "buy" rating in a research note on Thursday, June 11th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $256.30.

Oracle Stock Down 5.2%

NYSE ORCL opened at $153.17 on Friday. The stock has a market cap of $441.20 billion, a PE ratio of 26.27, a P/E/G ratio of 1.20 and a beta of 1.74. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 3.21. Oracle has a 12 month low of $114.50 and a 12 month high of $331.00. The stock's 50 day moving average is $140.88 and its 200 day moving average is $160.46.

Oracle (NYSE:ORCL - Get Free Report) last released its earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 EPS for the quarter, topping the consensus estimate of $1.74 by $0.18. The firm had revenue of $19.34 billion for the quarter, compared to the consensus estimate of $19.13 billion. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The company's quarterly revenue was up 29.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.47 earnings per share. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. Research analysts predict that Oracle will post 6.51 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Vice Chairman Jeffrey Henley sold 400,000 shares of the stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total transaction of $63,664,000.00. Following the completion of the sale, the insider owned 400,000 shares of the company's stock, valued at $63,664,000. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Oracle

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Bouchey Financial Group Ltd. purchased a new position in shares of Oracle in the 2nd quarter valued at approximately $229,000. Capstone Financial Advisors Inc. raised its position in Oracle by 3.6% during the second quarter. Capstone Financial Advisors Inc. now owns 1,809 shares of the enterprise software provider's stock valued at $265,000 after acquiring an additional 63 shares in the last quarter. Van Hulzen Asset Management LLC lifted its holdings in Oracle by 0.7% in the second quarter. Van Hulzen Asset Management LLC now owns 11,815 shares of the enterprise software provider's stock valued at $1,731,000 after acquiring an additional 81 shares during the period. MCF Advisors LLC boosted its position in Oracle by 3.4% in the 2nd quarter. MCF Advisors LLC now owns 20,411 shares of the enterprise software provider's stock worth $2,991,000 after purchasing an additional 677 shares in the last quarter. Finally, Archford Capital Strategies LLC boosted its position in Oracle by 5.5% in the 2nd quarter. Archford Capital Strategies LLC now owns 4,881 shares of the enterprise software provider's stock worth $715,000 after purchasing an additional 255 shares in the last quarter. 42.44% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle reported adjusted earnings of $1.92 per share versus the $1.74 consensus, while revenue rose 29.6% year over year to approximately $19.3 billion. Cloud infrastructure revenue surged 121% to $7.4 billion, highlighting strong demand for AI computing capacity. Oracle shares rise as AI cloud backlog beats estimates
• Positive Sentiment: Remaining performance obligations reached a record $664 billion, improving visibility into future revenue. Management also issued fiscal 2027 adjusted EPS guidance of $8.10, above the roughly $7.75 analyst expectation, and forecast second-quarter EPS of $1.85–$1.93. Oracle's stock jumps on earnings beat
• Positive Sentiment: William Blair, Piper Sandler and Citizens JMP reiterated bullish views, citing triple-digit cloud growth, AI demand and an attractive valuation. Oracle’s $0.50 quarterly dividend was also declared. Analyst sees Oracle as a prime AI beneficiary
• Neutral Sentiment: Investors are reassessing Oracle as more than an OpenAI listing proxy. The company’s broader cloud infrastructure business, customer backlog and long-term AI partnerships may provide growth even if OpenAI-related enthusiasm cools. Why Oracle stock is more than an OpenAI proxy
• Negative Sentiment: Oracle’s AI buildout remains expensive: capital spending is expected to remain about $90 billion–$95 billion, while free cash flow was negative and the company continues to rely on debt and equity financing. This raises concerns about returns and balance-sheet risk. Oracle AI data center buildout faces delays
• Negative Sentiment: Some analysts remain cautious despite the beat, noting data-center construction delays, execution risk and Oracle’s leverage. The stock is therefore sensitive to interest rates, bond-market conditions and evidence that backlog converts into cash.

About Oracle

Oracle Corporation is a global enterprise technology company that develops and provides database software, cloud infrastructure, business applications and related technology services. Its offerings help organizations manage data, run applications, support business operations and build technology environments across on-premises, hybrid and cloud-based settings.

The company's products include Oracle Database, MySQL, Java, Oracle Cloud Infrastructure and a broad portfolio of cloud applications for enterprise resource planning, financial management, human resources, supply chain management, customer experience and industry-specific operations.

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