Analysts Say Even the Bear Case for Oracle Stock Is Bullish. Should You Back Up the Truck on ORCL?

Core Viewpoint - Oracle's stock has experienced a significant decline of over 26% in the last month due to concerns regarding artificial intelligence spending and a broader pullback in AI stocks [1] Group 1: Stock Performance - Despite the recent slump, Oracle's share prices are up 21% in 2025, outperforming the S&P 500 by approximately 4% [4] - Oracle currently trades at a forward price-to-earnings ratio of 29.6, which is consistent with its historical mean five-year P/E ratio of 30.6 [5] Group 2: Analyst Insights - Analysts from Deutsche Bank and HSBC have issued positive notes on Oracle, suggesting that the company's current weakness may be temporary [2] - HSBC has reiterated a "Buy" rating with a price target of $382, highlighting Oracle's remaining performance obligations exceeding $500 billion [2] Group 3: Financial Performance - Oracle reported first quarter fiscal 2026 earnings with revenue of $14.92 billion, reflecting a 12% increase year-over-year, while net income remained unchanged at $2.92 billion [6] - The cloud computing division was a significant growth driver, with revenue increasing by 28% year-over-year, while software revenue fell by 1% and hardware revenue rose by only 2% [7]