Oracle (NYSE:ORCL) Stock Price Up 2% - Should You Buy?

Key Points

• Oracle shares rose 2% to $156.31, while recent earnings showed strong momentum: revenue increased 20.6% year over year and EPS exceeded analyst expectations.
• Expanded partnerships with AWS and Quantinuum, along with continued AI infrastructure demand, support Oracle’s cloud-growth strategy and broader enterprise opportunities.
• Risks remain significant: heavy AI spending, rising debt, potential layoffs and bearish investor sentiment could pressure cash flow and profitability. Analysts nonetheless maintain a “Moderate Buy” consensus with a $263.97 average price target.

Oracle Corporation (NYSE:ORCL - Get Free Report) shares rose 2% during mid-day trading on Thursday . The company traded as high as $159.26 and last traded at $156.31. 25,578,829 shares were traded during trading, a decline of 13% from the average session volume of 29,547,928 shares. The stock had previously closed at $153.28.

Trending Headlines about Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Expanded AWS partnership supports cloud growth. Oracle and Amazon Web Services expanded their long-term collaboration, accelerating enterprise migration to Oracle AI Database@AWS. The service is now available in 22 AWS regions, while Exadata Database Service on Exascale Infrastructure adds flexible, pay-per-use capacity. Broader AWS distribution could help Oracle win more large enterprise workloads and boost cloud revenue. Oracle and AWS Deepen Strategic Collaboration
• Positive Sentiment: Quantum computing adds a new growth narrative. Oracle is partnering with Quantinuum to bring its Helios quantum computer to Oracle Cloud Infrastructure alongside high-performance computing and GPU resources. Although commercial revenue is likely longer term, the deal strengthens Oracle’s positioning in hybrid AI and emerging enterprise computing. Oracle and Quantinuum Partner on Quantum Computing
• Positive Sentiment: AI infrastructure demand remains a tailwind. Strong results from neocloud companies CoreWeave and Nebius highlighted accelerating demand for AI computing, supporting expectations for Oracle’s AI-related cloud backlog and infrastructure business. Oracle’s latest quarterly results also exceeded analyst estimates, with revenue up 20.6% year over year.
• Neutral Sentiment: Technical momentum has improved. ORCL moved above its 50-day moving average, a short-term bullish signal, but remains below its 200-day average. This suggests improving momentum without confirming a longer-term trend reversal. Oracle Crosses Above 50-Day Moving Average
• Negative Sentiment: AI spending and debt are raising execution concerns. Reports say Oracle is considering another round of job cuts after reducing its workforce by 13% in fiscal 2026. The potential cuts reportedly reflect pressure from large AI infrastructure investments and rising debt, creating concerns about cash flow and profitability. Oracle Weighs Another Round of Job Cuts
• Negative Sentiment: Bearish sentiment remains a risk. Investor Michael Burry reportedly added to his short position in Oracle, arguing that AI-related valuations resemble a late-stage boom. The trade does not change Oracle’s fundamentals but may reinforce volatility and skepticism about whether future AI returns will justify current capital spending.

Wall Street Analyst Weigh In

ORCL has been the topic of a number of research reports. Barclays raised their target price on shares of Oracle from $240.00 to $250.00 and gave the company an "overweight" rating in a research note on Thursday, June 11th. Mizuho set a $320.00 price target on shares of Oracle in a research report on Wednesday, June 3rd. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $190.00 price target on shares of Oracle in a report on Thursday, June 11th. Arete Research set a $255.00 price objective on Oracle and gave the company a "buy" rating in a research report on Thursday, May 7th. Finally, Scotiabank restated an "overweight" rating on shares of Oracle in a research note on Thursday, June 11th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Oracle presently has an average rating of "Moderate Buy" and a consensus target price of $263.97.

Oracle Stock Up 2.0%

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 firm has a market capitalization of $450.25 billion, a price-to-earnings ratio of 26.81, a P/E/G ratio of 0.91 and a beta of 1.72. The stock has a 50 day moving average of $152.76 and a 200 day moving average of $161.83.

Oracle (NYSE:ORCL - Get Free Report) last posted its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, beating the consensus estimate of $1.96 by $0.15. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The business had revenue of $19.18 billion during the quarter, compared to analyst estimates of $19.10 billion. During the same period in the previous year, the business posted $1.70 EPS. The company's quarterly revenue was up 20.6% on a year-over-year basis. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. As a group, analysts expect that Oracle Corporation will post 6.47 earnings per share for the current fiscal year.

Oracle Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were given a $0.50 dividend. The ex-dividend date was Friday, July 10th. This represents a $2.00 annualized dividend and a yield of 1.3%. Oracle's dividend payout ratio is 34.31%.

Insider Activity at Oracle

In other Oracle news, Vice Chairman Jeffrey Henley sold 400,000 shares of the firm's stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total value of $63,664,000.00. Following the sale, the insider owned 400,000 shares in the company, valued at approximately $63,664,000. This trade represents a 50.00% decrease in their ownership of the stock. The sale 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. Insiders own 40.90% of the company's stock.

Institutional Trading of Oracle

Large investors have recently added to or reduced their stakes in the business. New Mexico Educational Retirement Board grew its holdings in Oracle by 4.2% during the 4th quarter. New Mexico Educational Retirement Board now owns 76,590 shares of the enterprise software provider's stock worth $14,928,000 after acquiring an additional 3,100 shares during the period. Planning Center Inc. lifted its stake in shares of Oracle by 142.2% in the 4th quarter. Planning Center Inc. now owns 6,376 shares of the enterprise software provider's stock valued at $1,243,000 after purchasing an additional 3,743 shares during the period. Valeo Financial Advisors LLC boosted its position in shares of Oracle by 4.6% in the 2nd quarter. Valeo Financial Advisors LLC now owns 80,686 shares of the enterprise software provider's stock worth $11,825,000 after purchasing an additional 3,584 shares during the last quarter. Axxcess Wealth Management LLC boosted its position in shares of Oracle by 870.0% in the 4th quarter. Axxcess Wealth Management LLC now owns 671,452 shares of the enterprise software provider's stock worth $128,012,000 after purchasing an additional 602,230 shares during the last quarter. Finally, Stevens Capital Management LP grew its stake in shares of Oracle by 348.1% during the fourth quarter. Stevens Capital Management LP now owns 48,587 shares of the enterprise software provider's stock worth $9,470,000 after purchasing an additional 37,744 shares during the period. 42.44% of the stock is currently owned by institutional investors and hedge funds.

About Oracle

Oracle Corporation is a multinational technology company that develops and sells database software, cloud engineered systems, enterprise software applications and related services. The company is widely known for its flagship Oracle Database and a portfolio of enterprise-grade software products that support data management, application development, analytics and middleware. Over recent years Oracle has expanded its focus to include cloud infrastructure and cloud applications, positioning itself as a provider of both platform and software-as-a-service solutions for large organizations.

Oracle's product and service offerings include Oracle Database and the Autonomous Database, Oracle Cloud Infrastructure (OCI), enterprise resource planning (ERP), human capital management (HCM) and supply chain management (SCM) cloud applications (often grouped under Oracle Fusion Cloud Applications), middleware such as WebLogic, and developer technologies including Java and MySQL.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source