Royal Bank Of Canada Issues Pessimistic Forecast for Oracle (NYSE:ORCL) Stock Price

Key Points

• Royal Bank of Canada cut Oracle’s price target from $190 to $165 while maintaining a “sector perform” rating, implying about 6.5% upside from the cited share price. Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average target of $255.92.
• Oracle reported quarterly adjusted EPS of $1.92 versus the $1.74 consensus, while revenue rose 29.6% year over year to approximately $19.34 billion. Cloud infrastructure revenue surged 121%, driven by demand for AI computing capacity, and the company issued stronger fiscal 2027 guidance.
• Risks include heavy AI-related capital spending, pressure on free cash flow and delays at a New Mexico data center. Oracle Vice Chairman Jeffrey Henley also sold 400,000 shares under a pre-arranged trading plan.

Oracle (NYSE:ORCL - Get Free Report) had its price objective decreased by Royal Bank Of Canada from $190.00 to $165.00 in a note issued to investors on Friday, Benzinga reports. The firm presently has a "sector perform" rating on the enterprise software provider's stock. Royal Bank Of Canada's target price would suggest a potential upside of 6.46% from the company's current price.

ORCL has been the subject of several other research reports. Wedbush dropped their price objective on shares of Oracle from $275.00 to $240.00 and set an "outperform" rating for the company in a research report on Thursday, June 11th. Stifel Nicolaus set a $200.00 target price on shares of Oracle in a research note on Friday. Bank of America lifted their price target on shares of Oracle from $200.00 to $240.00 and gave the stock a "buy" rating in a research report on Tuesday, June 9th. Weiss Ratings downgraded shares of Oracle from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, July 20th. Finally, BTIG Research restated a "buy" rating and issued a $400.00 price objective on shares of Oracle in a report on Friday, June 5th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Oracle has a consensus rating of "Moderate Buy" and an average target price of $255.92.

Oracle Trading Up 1.3%

Shares of ORCL stock opened at $154.98 on Friday. Oracle has a 12-month low of $114.50 and a 12-month high of $329.50. The firm has a 50-day moving average price of $140.88 and a 200 day moving average price of $160.46. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 3.21. The company has a market capitalization of $446.42 billion, a P/E ratio of 26.78, a P/E/G ratio of 1.20 and a beta of 1.74.

Oracle (NYSE:ORCL - Get Free Report) last released its quarterly earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 EPS for the quarter, topping analysts' consensus estimates of $1.74 by $0.18. The business had revenue of $19.34 billion for the quarter, compared to analyst estimates of $19.13 billion. Oracle had a return on equity of 58.62% and a net margin of 25.37%.Oracle's revenue for the quarter was up 29.6% on a year-over-year basis. During the same period in the prior year, the company earned $1.47 EPS. 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 forecast that Oracle will post 6.51 earnings per share for the current fiscal year.

Insider Activity

In related news, Vice Chairman Jeffrey Henley sold 400,000 shares of the stock in a transaction that occurred on Wednesday, June 24th. The stock was 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 directly owned 400,000 shares of the company's stock, valued at approximately $63,664,000. This represents a 50.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 40.90% of the company's stock.

Hedge Funds Weigh In On Oracle

Hedge funds and other institutional investors have recently bought and sold shares of the business. HFM Investment Advisors LLC raised its stake in Oracle by 290.9% in the fourth quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider's stock valued at $25,000 after buying an additional 96 shares during the period. Basepoint Wealth LLC bought a new position in shares of Oracle during the 4th quarter worth approximately $26,000. FSA Wealth Management LLC acquired a new position in shares of Oracle during the 3rd quarter worth approximately $28,000. Osbon Capital Management LLC acquired a new position in shares of Oracle during the 4th quarter worth approximately $28,000. Finally, Basso Capital Management L.P. bought a new stake in Oracle in the 4th quarter valued at $29,000. Institutional investors own 42.44% of the company's stock.

More Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Results exceeded expectations: Oracle reported adjusted earnings of $1.92 per share versus the $1.74 consensus estimate, while revenue increased 29.6% year over year to approximately $19.35 billion, ahead of forecasts. Oracle jumps after reporting revenue growth fueled by AI cloud demand
• Positive Sentiment: AI cloud growth was the key catalyst: Cloud infrastructure revenue surged 121% to about $7.4 billion, reinforcing the view that Oracle is benefiting from rising demand for AI computing capacity. The company’s remaining performance obligations also reached roughly $664 billion, providing significant future revenue visibility. Oracle shares rise as AI cloud backlog beats estimates
• Positive Sentiment: Guidance improved investor confidence: Oracle forecast fiscal 2027 adjusted EPS of $8.10, above the approximately $7.75 consensus, and issued second-quarter EPS guidance of $1.85-$1.93 versus expectations near $1.82. Analysts including Cantor Fitzgerald and William Blair maintained bullish ratings, while Cantor set a $284 price target.
• Positive Sentiment: AI spending appears to be producing tangible demand: Management maintained its fiscal 2027 capital-expenditure outlook of $90 billion-$95 billion, suggesting confidence that data-center investments will support continued cloud growth.
• Neutral Sentiment: Analyst views remain mixed: BMO Capital Markets lowered its price target from $220 to $195 but retained an “outperform” rating, reflecting continued upside potential alongside valuation and execution concerns.
• Neutral Sentiment: Oracle declared a quarterly dividend of $0.50 per share, payable October 23 to shareholders of record October 9. The dividend provides modest income support but is not the primary driver of the session’s trading.
• Negative Sentiment: Financing and execution risks remain: Oracle’s New Mexico data-center construction has been delayed by a gas-pipeline issue, while heavy AI investment continues to pressure free cash flow. Investors will watch whether the large backlog converts into revenue and cash quickly enough to justify the spending.

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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