● AI Equity Research · Technology

Oracle Corporation (ORCL)

AI stock analysis · Software - Infrastructure · Last analyzed Aug 20, 2026

Compass Score

3.0/5

Call

Hold

Price

$143.81

AI Target

$246.43 +71.4%

AI Analyst Summary

Oracle is executing a compelling cloud infrastructure transformation, with 20%+ revenue and earnings growth fueled by surging demand for its OCI (Oracle Cloud Infrastructure) platform and multi-cloud database services. A PEG of 0.85 and a forward P/E of just 13.2x suggest the market has not yet fully priced in the durability of this growth cycle, supported by broad institutional conviction from 41 analysts. The key risk is that Oracle's valuation re-rating depends heavily on sustaining hyperscaler-level cloud growth, leaving it exposed to any deceleration in enterprise IT spending.

Catalysts

OCI capacity expansion and new data center openings in 2025 could drive further acceleration in cloud revenue, with management guiding for continued 20%+ top-line growth into FY2026.
Upcoming quarterly earnings release is a near-term catalyst, where sustained or improving EPS beats could trigger a meaningful re-rating toward the $246 analyst consensus target.
Deepening multi-cloud partnerships (e.g., with Microsoft Azure and Google Cloud) expand Oracle's database addressable market and could unlock new enterprise contract wins in H2 2025.

Fundamentals

Pe Trailing P/E: 24.5x | Forward P/E: 13.2x · 4.0/5

Trailing P/E of 24.5x is reasonable for a high-quality infrastructure software name, and the forward P/E of 13.2x signals meaningful earnings acceleration ahead. Valuation looks attractive relative to growth prospects and sector peers.

Peg PEG Ratio: 0.85 · 5.0/5

PEG of 0.85 is well below 1.0, indicating the market is underpricing Oracle's durable earnings growth. This is a strong value signal when paired with 20%+ revenue and earnings expansion.

Analyst Rating Strong Buy consensus (1.6) · 4.0/5

Consensus of 1.6 from 41 analysts (36 Buy, 7 Hold, 1 Sell) reflects broad institutional conviction. The near-unanimous bullish lean with only one Sell rating is a meaningful positive signal.

Earnings Trend EPS Growth YoY: +21.9% | Revenue Growth YoY: +20.6% · 4.0/5

21.9% YoY earnings growth alongside 20.6% revenue growth is a strong, consistent expansion trajectory. Growth is robust but not yet at the >25% acceleration threshold for a top score; trend remains constructive.

Price Target Beat EPS Beat Rate: 3 of 4 quarters · 3.0/5

Only 4 quarters of data are available, limiting full historical context. Beating in 3 of the last 4 quarters is a solid but not exceptional execution record; scores neutrally given the limited sample size.

Management Consistent execution with strong analyst confidence · 4.0/5

Sustained 20%+ growth in both revenue and earnings, a heavily bullish analyst community, and a 75% EPS beat rate over recent quarters point to disciplined management execution. Capital allocation appears aligned with cloud infrastructure scaling.

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