Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 14 Apr, 26 | ORCL | Buy | USD 163.54 | USD 172.0 | USD 184.0 | 2 days | Closed |
12.82%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, Oracle Fusion cloud human capital management, Oracle Cerner healthcare, Oracle Advertising, and NetSuite applications suite, as well as Oracle Fusion Sales, Service, and Marketing. The company also offers cloud-based industry solutions for various industries; Oracle application licenses; and Oracle license support services. In addition, it provides cloud and license business' infrastructure technologies, such as the Oracle Database and MySQL Database; Java, a software development language; and middleware, including development tools and others. The company's cloud and license business' infrastructure technologies also comprise cloud-based compute, storage, and networking capabilities; and Oracle autonomous database, MySQL HeatWave, Internet-of-Things, digital assistant, and blockchain. Further, it provides hardware products and other hardware-related software offerings, including Oracle engineered systems, enterprise servers, storage solutions, industry-specific hardware, virtualization software, operating systems, management software, and related hardware services; and consulting and customer services. The company markets and sells its cloud, license, hardware, support, and services offerings directly to businesses in various industries, government agencies, and educational institutions, as well as through indirect channels. The company has a collaboration with Amdocs Limited to empower customers on their journey towards cloud and digital adoption. Oracle Corporation was founded in 1977 and is headquartered in Austin, Texas.
Infrastructure (IaaS) Surge: USD 4.9 billion in Q3FY26 vs USD 2.7 billion in Q3FY25
Strong Revenue Growth: USD 17.2 billion in Q3FY26 vs USD 14.1 billion in Q3FY25
Rising Operating Expenses: USD 11.7 billion in Q3FY26 vs USD 9.8 billion in Q3FY25
Increase in Interest Expense: USD 1.18 billion in Q3FY26 vs USD 0.89 billion in Q3FY25
High dependence on sustained AI-driven cloud demand and significant capital investment requirements could pressure margins and returns if growth expectations moderate
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 163.54 | 145.0 | 172.0 | 184.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Robust Cloud-Led Growth and Strong Revenue Expansion: Oracle Corporation reported a strong financial performance in Q3 FY26, driven by significant growth in its cloud business. Total revenues increased by 22% year-over-year to USD 17.2 billion, supported by sustained demand across cloud infrastructure and applications. Cloud revenue emerged as the primary growth engine, rising 44% year-over-year to USD 8.9 billion, reflecting continued enterprise adoption of Oracle’s cloud offerings and AI-driven services.
Accelerated Infrastructure Growth Driven by AI Demand: The company witnessed exceptional traction in its cloud infrastructure (IaaS) segment, with revenues surging 84% year-over-year to USD 4.9 billion. This growth was largely fueled by increasing demand for AI training and inferencing workloads. Additionally, Oracle’s multicloud database revenue expanded sharply, highlighting its strengthening position in hybrid and multi-cloud environments, supported by strategic partnerships and enterprise-scale deployments.
Steady SaaS Expansion Across Enterprise Applications: Oracle’s SaaS portfolio also delivered steady growth, with cloud applications revenue reaching USD 4.0 billion, up 13% year-over-year. Key offerings such as Fusion Cloud ERP and NetSuite Cloud ERP recorded revenues of USD 1.1 billion each, growing 17% and 14%, respectively. This reflects consistent demand for enterprise digital transformation solutions and Oracle’s competitive positioning in integrated cloud applications.
Profitability Strength Supported by Operating Leverage: Profitability metrics remained robust during the quarter. GAAP operating income rose to USD 5.5 billion, while non-GAAP operating income increased 19% year-over-year to USD 7.4 billion. Net income stood at USD 3.7 billion, with non-GAAP net income reaching USD 5.2 billion, up 23% year-over-year. Earnings per share also improved significantly, with GAAP EPS rising 24% to USD 1.27 and non-GAAP EPS increasing 21% to USD 1.79, reflecting effective cost management and operating leverage.
Strong Backlog and Long-Term Revenue Visibility: Oracle reported a substantial increase in Remaining Performance Obligations (RPO), which surged 325% year-over-year to USD 553 billion. This sharp increase was primarily driven by large-scale AI-related contracts, providing strong revenue visibility for future periods. The company highlighted that many of these contracts are supported through customer prepayments or externally funded infrastructure, reducing near-term capital burden.
Capital Strategy and Cash Flow Strength: The company demonstrated strong liquidity and capital-raising capability, securing USD 30 billion through a mix of bonds and convertible preferred stock. Operating cash flow over the last twelve months reached USD 23.5 billion, reflecting a 13% year-over-year increase. However, elevated capital expenditure plans, particularly for AI infrastructure, indicate continued investment intensity to support long-term growth.
Positive Outlook Supported by AI and Cloud Momentum: Looking ahead, Oracle expects continued strong growth, with Q4 FY26 revenue projected to grow between 19% and 21% in USD terms, and cloud revenue expected to expand between 46% and 50%. The company also raised its FY27 revenue guidance to USD 90 billion, supported by strong demand for AI-driven cloud services and improving customer financial strength, positioning Oracle for sustained long-term expansion.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Oracle Corporation (NYSE: ORCL) at the current market price of USD 163.54, as on 14 April 2026 at 8:10 am PDT
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Software - Infrastructure
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| ORCL Oracle Corporation |
0.76 0.41% | 184.29 | 29.34 | 18.66 | 5.55 | 74.06 | 7.10 | 18.13 |
| MSFT Microsoft Corporation |
0.49 0.13% | 379.40 | 37.32 | 29.94 | 13.03 | 12.45 | 13.06 | 24.59 |
| CRWD Crowdstrike Holdings Inc |
1.90 0.28% | 684.86 | - | 89.29 | 23.70 | 24.81 | 21.91 | 577.82 |
| PANW Palo Alto Networks Inc |
5.65 2.00% | 287.78 | 44.57 | 45.05 | 11.98 | 20.70 | 11.82 | 77.11 |
| SNPS Synopsys Inc |
-6.23 1.35% | 455.51 | 64.19 | 42.19 | 13.86 | 12.74 | 13.77 | 48.43 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on April 14, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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