Analysts forecast Oracle stock price to rise over the next 12 months amid AI cloud initiative and cost reductions

Wall Street analysts are maintaining a bullish outlook on Oracle stock over the next 12 months, even as the shares have struggled in 2026 with a 25% year-to-date decline. The positive sentiment follows Oracle’s continued push into AI cloud infrastructure, supported by strong quarterly results alongside cost-cutting measures and ongoing legal scrutiny.

Q3 FY2026 results and AI cloud momentum

Oracle reported revenue of $17.2 billion, up 22% year over year. Cloud revenue rose 44%, while OCI surged 84%. The company also reported EPS that beat expectations.

Oracle’s backlog increased to $553 billion. Management raised its FY2027 revenue outlook to $90 billion, reinforcing expectations for continued growth tied to cloud and AI infrastructure demand.

Cost cuts, legal challenges, and cash flow pressure

Despite the operational momentum, Oracle’s AI investment plans are weighing on financial flexibility. The company is projected to spend $50 billion in CapEx for AI, which has pressured cash flow and increased debt.

Oracle has also begun large-scale layoffs affecting up to 30,000 employees as part of cost reduction efforts. In parallel, the company faces investor lawsuits related to its AI spending disclosures.

Stock performance

In the most recent trading session, ORCL shares closed at $146, up 0.76% on the day.

Analyst consensus: targets and ratings

TipRanks’ consensus estimates point to substantial upside over the coming year. The stock carries a “Strong Buy” rating based on 32 analysts.

• 12-month average price target: $245 (implied upside of approximately 67.45%)
• Highest price target: $400
• Lowest estimate: $149

Rating distribution among analysts: 27 recommend a Buy, 5 suggest a Hold, and none issue a Sell rating.

Key analyst views

Barclays

Barclays analyst Raimo Lenschow maintained an Overweight rating with a $240 price target. The analyst said Oracle’s job cuts are expected to boost cash flow and support its AI infrastructure expansion, noting the layoffs were largely anticipated by the market. Barclays also pointed to Oracle’s efforts to improve efficiency, particularly as the company lags peers in profit per employee, and suggested revenue could potentially triple in the coming years as AI demand scales and operating leverage improves.

Bernstein

Mark Moerdler of Bernstein said Oracle’s strong third-quarter performance and guidance have eased investor concerns. He cited improved business economics and rising confidence in Oracle’s AI strategy, arguing the stock appears undervalued despite trading below its highs. Bernstein also highlighted Oracle’s AI data center and core database positioning as supportive of growing AI demand, alongside upward earnings revisions.

Bank of America Securities

BofA Securities reinstated coverage on Oracle with a Buy rating and a $200 price target. The firm cited expected growth in AI infrastructure demand and confidence in Oracle’s long-term strategic direction.

JMP Securities

JMP Securities maintained a Market Outperform rating, pointing to Oracle’s substantial backlog as a key growth driver. The firm projected strong expansion for Oracle’s cloud infrastructure business in the coming years.