Oracle’s Cloud Bet Faces Earnings Test Amid Stock Slump
Oracle Corp. enters its Q3 FY26 earnings report under pressure, with shares down 20% year-to-date and 50% below their 2024 peak. Analysts expect $1.71 EPS (+16.3% YoY) and $16.92 billion revenue (+20% YoY), after last quarter's $16.06 billion revenue missed estimates despite 14.2% growth.
The spotlight falls on Oracle Cloud Infrastructure (OCI), where revenue growth accelerated from 49% to 68% over four consecutive quarters. Management projects 77% full-year growth for OCI, while remaining performance obligations surged 438% to $523 billion.
As the first major data analytics firm to report this season, Oracle lacks peer comparisons. Deutsche Bank's recent price target cut from $375 to $300 reflects mounting skepticism about whether cloud momentum can offset broader tech sector weakness.