Oracle Corporation is set to report its fiscal fourth-quarter 2026 earnings after the market close on Wednesday, June 10. Ahead of the report, Wall Street analysts have raised price targets, and options data indicates bullish sentiment.
Analyst Targets and Ratings
BofA Securities raised its price target to $240 from $200, maintaining a Buy rating, citing a re-rating multiple of 26.5 times calendar 2027 earnings, up from 22 times. Citi's Tyler Radke increased his target to $330 (from $320), implying ~56% upside, and expects revenue and profitability near the high end of guidance, with strong IaaS growth and OCI performance offsetting soft SaaS. Evercore ISI projects revenue of $19.0 billion and EPS of $1.95, just below consensus. TD Cowen targets $300, Oppenheimer $275, Barclays $240, and Guggenheim the most bullish at $400, highlighting Oracle's recent capital raise and the OpenAI funding round.
The consensus rating is a Strong Buy, based on 28 Buys and 5 Holds, with an average price target of $268.44 (approximately 27% upside). The stock currently trades around $211.82.
Options Market and Technicals
Options data shows a put-to-call ratio of 0.46 for contracts expiring June 12, indicating bullish positioning. The upper price of near-term calls is set at $224, suggesting potential for a double-digit percentage gain after earnings. Technicals remain supportive, with ORCL above key moving averages and an RSI in the early 50s.
Fundamental Strength and Risks
Oracle's backlog stands at $553 billion in remaining performance obligations, and the company posted its first quarter of 20%+ organic growth in both revenue and earnings in over 15 years. However, its long-term debt has surged to over $124 billion, interest expense rose 32% YoY, and trailing free cash flow is deeply negative at -$24.7 billion. The current ratio has fallen to 0.62, and off-balance-sheet lease commitments total $261 billion. A slowdown in AI demand or a credit-rating event could shift the narrative.
The company expects cloud guidance to imply around 60% growth, and capital expenditure could exceed $80 billion in fiscal 2027.
