Recently, Zacks.com users have been paying close attention to Oracle (ORCL). This makes it worthwhile to examine what the stock has in store.
Three household names are trading near their 52-week lows even as Wall Street's average price targets sit far above where the market has them.
Oracle is deeply out of favor, trading at a steep discount after heavy AI-driven capex, negative free cash flow, and a BBB- credit rating. Despite negative headlines, ORCL's Q4 revenue grew 21% YOY, cloud infrastructure revenue surged 93%, and operating income increased 54% to $32 billion. ORCL trades at a price-to-cash flow just over 10 and a PEG near 0.5, making it attractive versus AI peers if catalysts materialize.
Oracle Corp. is reaffirmed as a Buy, despite a 22% stock decline and ongoing margin and FCF pressures from heavy OCI investments. ORCL's Cloud segment drives revenue, with 39% YoY growth and a 404% surge in Multicloud; backlog reached $638B, but gross margin fell from 71% to 65%. Management expects near-term margin pressure from data center ramp-up but anticipates rapid improvement as capacity comes online, with long-term ROIC targeted in the high 20s.
Larry Ellison's personal guarantee ties Oracle's stock performance directly to the financing of Paramount Skydance's bid for Warner Bros. Discovery, creating an unusually interconnected financial risk.
Oracle stock rose by 2% in the premarket session as the company reached a deal with the US government in a major win for Larry Ellison, a close friend of Donald Trump. Still, it remains near its lowest level since April 2025.
The Pentagon just handed Oracle (NYSE:ORCL | ORCL Price Prediction) a headline win.
Pity Mr. Market. He supposedly wants to buy low and sell high. But he often recoils from and spews hate at stocks that can be bought low — like Oracle. Supposedly, ORCL is doing wrong by spending heavily to build data centers and, horror of horrors, borrowing and selling new equity to do this.
Oracle (ORCL) reached $120.04 at the closing of the latest trading day, reflecting a -4.61% change compared to its last close.
The Pentagon announced on Thursday a nearly $7 billion, up-to-10-year agreement with Oracle to consolidate the department's on-premises software licenses into a single contract, the latest move by the Pentagon's technology chief to cut costs by eliminating fragmented purchasing.
I helped negotiate the agreement and can say that it makes the platform secure for Americans.
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