Wall Street analysts are maintaining a bullish outlook on Oracle (NASDAQ: ORCL) stock for the next 12 months, despite the equity struggling in 2026 with a 25% year-to-date decline.
This comes as the technology company continues to accelerate its shift into AI cloud infrastructure, delivering strong Q3 FY2026 results alongside major layoffs and mounting legal challenges.
Notably, Oracle reported $17.2 billion in revenue, up 22% year over year, with cloud revenue rising 44% and OCI surging 84%, while EPS beat expectations. Its backlog jumped to $553 billion, and management raised its FY2027 revenue outlook to $90 billion.
However, heavy AI investment, projected at $50 billion in CapEx, has pressured cash flow and increased debt.
At the same time, Oracle has begun large-scale layoffs affecting up to 30,000 employees to cut costs, while also facing investor lawsuits over its AI spending disclosures.
Regarding stock price movement, ORCL shares closed the last trading session at $146, up 0.76% for the day.
Oracle stock price prediction
On the outlook, analysts at TipRanks have consensus estimates pointing to substantial upside over the coming year. The stock carries a ‘Strong Buy’ rating based on 32 analysts.
They project a 12-month average price target of $245, implying a potential upside of approximately 67.45% from the current valuation. The highest price target is $400, while the lowest estimate stands at $149.
Notably, 27 analysts recommend a ‘Buy’, five suggest a ‘Hold’, and none issue a ‘Sell’ rating.
Among the analysts, Barclays’ Raimo Lenschow said Oracle’s ongoing job cuts are expected to boost cash flow and support its aggressive AI infrastructure expansion, maintaining an ‘Overweight’ rating with a $240 price target. The analyst noted the layoffs were largely anticipated by the market and reflect efforts to improve efficiency, particularly as Oracle lags peers in profit per employee. With limited headcount growth and tighter cost controls, Barclays expects Oracle’s revenue to potentially triple in the coming years, driven by scaling AI demand and operating leverage.
On the other hand, Bernstein analyst Mark Moerdler said Oracle’s strong third-quarter performance and guidance have eased investor concerns, highlighting improved business economics and rising interest in its AI strategy. Despite the stock trading well below its highs, Oracle is viewed as undervalued, supported by upward earnings revisions and solid positioning of its AI data center and core database businesses to benefit from growing AI demand.
Meanwhile, BofA Securities reinstated coverage on Oracle with a ‘Buy’ rating and a $200 price target, citing expected growth in AI infrastructure demand and confidence in the company’s long-term strategic direction.
JMP Securities maintained a ‘Market Outperform’ rating, pointing to Oracle’s substantial backlog as a key growth driver and projecting strong expansion for its cloud infrastructure business in the coming years.
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