Analysts Urge ’Keep Buying’ Oracle Stock (ORCL) Despite Q1 Earnings Miss

Oracle's Q1 stumble isn't shaking Wall Street's faith—analysts are doubling down on bullish calls as cloud transformation gains steam.

The Numbers Don't Lie—But Context Does

While the earnings miss sent some weak hands scrambling, institutional players see through the short-term noise. Oracle's cloud infrastructure growth continues outpacing legacy segments—because apparently moving from selling database licenses to actually competing with AWS requires spending money first. Who knew?

Street Consensus: Look Past the Quarter

Multiple firms maintained overweight ratings, citing the company's aggressive AI infrastructure buildout and sticky enterprise customer base. Because nothing says 'conviction' like telling clients to ignore actual results in favor of hypothetical future gains.

Cloud Transition Trumps Temporary Turbulence

Oracle's betting big that massive data center investments will pay off as AI workloads explode. Because if there's one thing Wall Street loves more than beating earnings estimates, it's a good old-fashioned 'investment cycle' story to explain why they didn't.

The verdict? Oracle's playing the long game—and analysts are willing to wait. Whether Main Street investors have that same patience remains to be seen.

Elevate Your Investing Strategy:

• Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.

Analysts Show Confidence in Oracle Stock

Evercore ISI analyst Kirk Materne raised the price target on Oracle to $340 from $270, with an Outperform rating. He said the key positive was the strong growth in Oracle’s cloud backlog, which supports faster revenue and profit growth ahead. Materne added that higher spending on Oracle Cloud Infrastructure is worth it for long-term investors, as it strengthens Oracle’s position in AI. He also highlighted steady gains in other areas like sovereign and multi-cloud databases.

Also, Cantor Fitzgerald analyst Thomas Blakey raised his price target on Oracle to $400 from $271, keeping an Overweight rating. Blakey said Oracle’s remaining performance obligations (RPO), a measure that indicates contracted revenue, jumped 359% year-over-year, driven by major AI companies signing contracts with Oracle in the quarter. This gave the company stronger visibility for its cloud revenue outlook through FY30, with room for more upside. He believes Oracle is well positioned to benefit from rising demand for AI training and inferencing, which supports his higher price target.

Similarly, Stifel analyst Brad Reback raised his price target on Oracle to $350 from $250, while keeping a Buy rating. Reback also pointed to Oracle’s 359% jump in backlog, fueled by large AI contracts, as the key driver behind stronger growth expectations. He noted that management raised its capex target to about $35 billion for FY26, with spending likely to rise further as backlog could top $500 billion in coming quarters. Reback also highlighted strong gains in multi-cloud database, which grew over 1,500% as customers adopt Oracle to run large language models.

Is Oracle a Good Stock to Buy?

Currently, Wall Street has a Moderate Buy consensus rating on Oracle stock based on 23 Buys and 11 Holds. The average ORCL stock price target of $258.07 indicates about 7% upside potential from current levels.