Oracle's value has dropped by 18% in 2026. The leading choice on Wall Street has now established a price target of $210.

Oracle’s 2026 Performance: A Closer Look

Oracle (NYSE: ORCL) has faced a challenging start in 2026, with its stock price dropping over 18% after a strong surge in the third quarter of 2025. However, recent insights from JPMorgan suggest that the worst may be behind the company.

Record-Breaking Quarter Brings Optimism

Oracle recently reported its best quarter ever, posting more than 20% year-over-year growth in both earnings per share and total revenue. According to company leadership, this marks the first time in over a decade and a half that both metrics have seen such significant growth simultaneously.

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Following this earnings announcement, JPMorgan upgraded Oracle’s rating from Neutral to Overweight, citing an improved risk-reward outlook after the recent decline. Analyst Mark Murphy set a new price target of $210. Barclays also raised its target to $240. Despite these optimistic projections, Oracle’s shares closed at $159 on March 12, still well below these targets.

Analysts remain positive on Oracle, believing the recent downturn was excessive and that the current valuation offers a more appealing entry point. Oracle’s successful $25 billion debt raise has also helped address concerns about its credit rating and future funding needs for 2026.

Earlier in the year, Oracle faced several challenges that contributed to its share price decline. These included worries about overreliance on OpenAI, the high costs associated with AI infrastructure investments, and increased borrowing to support expansion. As a result, the company’s lofty valuation appeared less justified.

Since September 2025, Oracle’s stock has fallen by more than half from its 52-week peak of $345.

Ongoing Expansion and Future Prospects

Despite short-term obstacles, Oracle’s Remaining Performance Obligations (RPOs) soared to $553 billion in its third-quarter 2026 report—a 325% jump from the previous year. RPOs represent future non-cancelable revenue, including both invoiced and backlogged contracts, and their growth signals strong ongoing momentum.

The company’s latest results have shifted sentiment among investors and analysts. Oracle also announced plans to reduce its workforce by 12% to 18%—amounting to 20,000 to 30,000 jobs—to strengthen its cash position.

Long-Term Investment Outlook

For investors willing to accept Oracle’s substantial debt and ongoing heavy spending on AI data center expansion, the stock is now more attractively valued than it was for much of 2025.

With a robust backlog and a focus on cost-cutting alongside strategic investments, Oracle appears well-positioned for continued growth. Achieving JPMorgan’s revised $210 price target seems increasingly plausible.

Is Now the Time to Invest in Oracle?

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