Oracle Corporation (ORCL) a Moderate Buy, Per Wall Street Analysts

Core Viewpoint - Oracle Corporation is recognized as one of the best stocks to buy in the S&P 500, with varying analyst ratings and price targets reflecting mixed financial performance and future expectations [1][2][3]. Financial Performance - Oracle's diluted EPS for Q2 fiscal 2026 was reported at $2.26, surpassing estimates of $1.64 per share, but revenue, adjusted operating income, and Remaining Performance Obligations (RPO) fell short of Wall Street expectations [3]. - The company's revenue growth and earnings forecast for Q3 also did not meet analysts' estimates, leading to a revised capital expenditure projection of $15 billion higher than initially expected for the full year [4]. Analyst Ratings and Price Targets - Barclays maintains an Overweight rating on Oracle with a price target of $310, while RBC Capital has reduced its price target from $310 to $250, maintaining a Sector Perform rating [1][2]. - As of December 17, the consensus among Wall Street analysts is a Moderate Buy rating, with an average one-year price target of $308.87, indicating a potential upside of 67% [6]. Investment Considerations - Analysts highlight that growth in cloud revenue and RPO is being counterbalanced by negative free cash flow and increased capital expenditures, shifting investor focus towards capital efficiency rather than just revenue growth [5]. - Future share price stability is contingent on Oracle demonstrating capital efficiency, credible free cash flow recovery, and sustained margins [5].