Oracle (ORCL) investors likely didn’t have a happy Thanksgiving, given the falling stock price. Shares are down more than 26% in the last month as the tech company suffered through the market’s growing concern about artificial intelligence spending and an overall pullback in AI stocks.
But not all is lost. Analysts at Deutsche Bank and HSBC both issued bullish notes about Oracle just before the holiday, indicating that the company’s weakness could be short-lived. HSBC reiterated its “Buy” rating and $382 price target, noting its remaining performance obligations of more than $500 billion. And Deutsche Bank analyst Brad Zelnick wrote that Oracle is “getting little if any credit for its business with OpenAI.”
The bullish commentary helped Oracle stock pop on Wednesday. Now it remains to be seen if the company can maintain that momentum and turn its recent losses around.
Oracle is an Austin, Texas-based cloud computing company that makes software and systems that its customers use to store, manage, and analyze data. The company has a market capitalization of $575 billion, making it one of the 20 largest publicly traded companies in the world.
Despite the slump in the last month, share prices are up 21% in 2025, or roughly 4% better than the returns of the S&P 500 ($SPX). It slightly lags the performance of the S&P 1500 Information Technology Sector, however.
Oracle currently trades at a forward price-to-earnings ratio of 29.6, versus its mean five-year P/E ratio of 30.6. So historically, Oracle is trading at a value consistent with what shareholders should expect. The stock offers a modest dividend of $2 per share, or a dividend yield of 1% that is paid on a quarterly basis.
Oracle announced its first quarter fiscal 2026 earnings on Sept. 9. Revenue was $14.92 billion, up 12% from a year ago, and net income was $2.92 billion, unchanged from the previous year. Oracle reported earnings per share of $1.47, missing analysts’ estimates by just a penny per share.
Much of the company’s growth in the quarter was in its cloud computing division, which saw revenue jump 28% in the quarter from a year ago. Software revenue fell 1%, hardware revenue rose only 2%, and the company’s services revenue increased by 7%.
