Analysts unveil shocking Oracle stock forecast

Core Insights - Oracle is positioned as a key player in AI infrastructure development despite a poor earnings report for Q1 2026, with stock prices soaring over 30% due to a significant increase in remaining performance obligation (RPO) [1][6] Earnings Highlights - Revenue for Q1 2026 was $14.9 billion, reflecting a 12% increase in USD and an 11% increase in constant currency [6] - Net income was $2.927 billion, slightly down from $2.929 billion in Q1 2025 [6] - Earnings per share (EPS) decreased by 2% year-over-year to $1.01, which was $0.01 lower than consensus estimates [6] - Free cash flow saw a significant decline of 152% year-over-year, resulting in a negative $5.9 billion [6] Analyst Opinions - Bank of America analysts upgraded Oracle's rating from neutral to buy, raising the price target from $295 to $368, citing accelerating demand in Oracle's cloud infrastructure segment [3] - Veteran analyst Stephen Guilfoyle expressed concerns regarding the RPO of $455 billion, noting that current deferred revenue is only $12.098 billion, suggesting Oracle is nearing "strong sell" territory [5] Risks and Concerns - Moody's raised concerns about Oracle's $300 billion deal with OpenAI, indicating that the concentration of this deal could impose significant financial pressure if OpenAI encounters difficulties [8][9] - Analysts highlighted several risks including severe downturns in enterprise software spending, currency headwinds, integration issues from past acquisitions, and competition from major players like IBM, Amazon, Microsoft, and SAP [7] Corporate Developments - Oracle appointed Clay Magouyrk and Mike Sicilia as co-CEOs, with former CEO Safra Catz becoming executive vice chair of the board [10] - The company sold bonds amounting to $18 billion as part of its financial strategy [10]