Oracle (ORCL) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Oracle (ORCL) reachead $128.62 at the closing of the latest trading day, reflecting a -0.88% change compared to its last close.
Oracle's reaffirmed FY26 target and new FY27 guide signal strong growth potential, with a 20% revenue growth outlook for FY27 being particularly bullish. Record RPO build and significant backlog growth indicate positive momentum, despite near-term data center bottlenecks delaying revenue conversion. Oracle Cloud Infrastructure's capabilities and multi-cloud traction are driving large AI deals and enterprise growth, enhancing the company's competitive edge.
Oracle's much-needed correction is finally here, bringing the stock back to earth after the Stargate-induced rally and the market's over-exuberance surrounding the AI boom. With ORCL stock now trading (somewhat) nearer to historical trends and its peers, its high-growth investment thesis is more compelling as the management guides double digits cloud growth opportunities. Readers must note the robust tailwinds arising from the Stargate project from H2'26 onwards, with it triggering an accelerated growth profile in the second half of the decade.
Oracle Corporation (ORCL) is undervalued, despite strong financials, strategic investments in AI, and cloud growth, making it a compelling investment opportunity. ORCL's financial dominance includes $472.64 billion in revenue and $120.78 billion in free cash flow since 2015, with robust shareholder returns. ORCL faces competition from tech giants but has unique strengths in cloud and AI, positioning it for future growth and market share gains.
Analysts at Evercore ISI highlighted names like Microsoft NASDAQ: MSFT and Salesforce NYSE: CRM as most resilient in the face of potential spending slowdowns, listing Oracle NYSE: ORCL among those most exposed.
Oracle stock is undervalued with a P/E ratio under 20, showing strong cloud growth and positive earnings forecasts despite macroeconomic challenges. Key risks include supply chain issues, trade war impacts, and heavy capex plans, but Oracle's dividend increase and data center expansion are positive signs. Technically, ORCL is mixed; shares are below key moving averages with a bearish death cross, but there's potential upside to the mid-$140s.
AI related demand is fueling growth for Oracle's database products, helping the company build up a massive backlog. Management is expecting growth to improve to 15% in FY26 and further to 20% in FY27, versus ~8% growth today. Recent market turmoil has dropped Oracle's stock below a 20x P/E, which undervalues the company for its expected growth trajectory.
Artificial intelligence (AI) stocks haven't been performing well on the market in 2025 amid the tariff-fueled turmoil that threatens to send the U.S. economy into a recession. Share prices of cloud infrastructure provider Oracle (ORCL -0.81%) are down nearly 20% so far in 2025 as of this writing, while data streaming platform provider Confluent (CFLT 1.41%) has dipped more than 23%.
ORCL faces dual security breaches as capital spending surges. With slowing growth and damaged trust, investors may want to reconsider positions despite AI ambitions.
Zacks.com users have recently been watching Oracle (ORCL) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Oracle staff reportedly told some clients that a hacker stole some old client login credentials. The hacker accessed usernames, passkeys and encrypted passwords, Bloomberg reported Wednesday (April 2), citing unnamed sources.