Price Prediction: Two Big Reasons Oracle Stock Could Surge 60% This Year

Oracle (NYSE: ORCL) has been the AI unreality communicative of the year, past the AI unreality panic of the past month. Shares are down 35.29% twelvemonth to day and 33.43% implicit the past month, yet the underlying concern is increasing faster than astatine immoderate constituent successful Oracle's history.

Our 24/7 Wall St. terms people for Oracle is $198.72 implicit the adjacent 12 months, implying 59.99% upside from existent levels. Our proposal is bargain with precocious confidence.

24/7 Wall St. Price Target Summary

Why Oracle Just Cratered

Oracle sits 26% beneath its 52-week precocious of $341.82 and conscionable supra the 52-week debased of $123.66.

Recent catalysts see S&P Global downgrading Oracle from BBB to BBB- connected July 13 tied to AI infrastructure debt, New Mexico rejecting a state pipeline licence for an Oracle information center, and assemblage contagion aft IBM (NYSE:IBM) shares dropped much than 25% connected a Q2 miss.

Yet Q4 FY2026 delivered EPS of $2.11 connected gross of $19.18 billion, with IaaS increasing 93% twelvemonth implicit twelvemonth to $5.79 cardinal and remaining show obligations exploding 363% to $638 billion. The fundamentals and the portion person wholly decoupled.

The Case for $250+

The bull thesis rests connected 2 engines that some accelerated past quarter. First, multi-cloud database gross grew 531% twelvemonth implicit year, with Oracle present unrecorded successful 33 Microsoft regions, 14 Google regions, and exiting Q4 with 22 AWS regions.

Second, $75 cardinal of the $638 cardinal RPO is tied to customer-supplied GPUs, dramatically shrinking Oracle's capex burden.

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Management guides FY2027 gross of $90 cardinal with non-GAAP EPS raised to $8.05, and Safra Catz's five-year OCI roadmap climbs from $18 cardinal to $144 billion. Our bull lawsuit implies $351.26 wrong 12 months, astir matching the Street's $251.85 consensus.

What Could Go Wrong

The carnivore lawsuit starts with the equilibrium sheet. Free currency travel was antagonistic $23.69 cardinal for FY2026 against capex of $55.66 billion, and Oracle plans to rise astir $40 cardinal successful indebtedness and equity successful FY2027, including a $20 cardinal at-the-market equity program.