Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 14 May, 26 | ORCL | Buy | USD 196.55 | USD 207.0 | USD 217.0 | 14 days | Closed |
11.11%
|
*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.
Growth in Operating Cash Flow: USD 23.5 Bn in Q3FY26 vs USD 20.7 Bn in Q3FY25
Total Revenue Growth: USD 17.2 Bn in Q3FY26 vs USD 14.1 Bn in Q3FY25
Decline in Free Cash Flow: Negative USD 24.7 Bn in Q3FY26 vs Negative USD 5.9 Bn in Q1FY26
Increase in Interest Expense: USD 1.18 Bn in Q3FY26 vs USD 0.89 Bn in Q3FY25
Oracle faces risks related to elevated capital expenditure requirements, rising debt levels, supply constraints for AI infrastructure components, and increasing competition within the global cloud and AI infrastructure market
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 196.55 | 176.0 | 207.0 | 217.0 |
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 Revenue Growth Supports Financial Performance: Oracle Corporation delivered strong Q3FY26 financial results, supported by accelerating demand for cloud infrastructure and AI workloads. Total revenue increased 22% YoY to USD 17.2 billion, while cloud revenue surged 44% YoY to USD 8.9 billion. Cloud Infrastructure (IaaS) revenue grew 84% YoY, reflecting rising enterprise adoption of Oracle’s AI-focused cloud platform and multicloud database services.
AI Contracts and RPO Expansion Strengthen Long-Term Visibility: Oracle’s Remaining Performance Obligations (RPO) expanded significantly to USD 553 billion in Q3FY26, marking a 325% YoY increase. The sharp rise was primarily driven by large-scale AI cloud agreements, providing strong long-term revenue visibility. Management also highlighted that most AI infrastructure funding requirements are supported through customer prepayments or customer-supplied GPUs, reducing incremental capital pressure.
AI Infrastructure Demand Enhances Competitive Positioning: The company continued benefiting from robust global demand for AI training and inferencing capacity, which management stated is growing faster than industry supply. Oracle’s multicloud database revenue increased 531% YoY, while Oracle Cloud Database revenue advanced 35%, indicating strong enterprise traction across AI and database workloads. Oracle also emphasized improvements in software development efficiency through AI-powered code generation technologies.
Strong Profitability and Cash Flow Reflect Operational Strength: Oracle reported GAAP operating income of USD 5.5 billion and non-GAAP operating income of USD 7.4 billion in Q3FY26. GAAP EPS increased 24% YoY to USD 1.27, while non-GAAP EPS rose 21% YoY to USD 1.79. Over the last twelve months, operating cash flow reached USD 23.5 billion, reflecting sustained operational efficiency and strong enterprise demand for Oracle’s cloud offerings.
Raised FY27 Revenue Guidance Signals Confidence in Future Growth: Oracle maintained FY26 revenue guidance of USD 67 billion while raising FY27 revenue guidance to USD 90 billion, supported by accelerating AI cloud demand and expanding infrastructure deployments. The company also expects Q4FY26 total cloud revenue growth between 46% and 50% YoY in USD terms, highlighting continued momentum across its cloud ecosystem and AI infrastructure business.
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 196.55, as on 14 May,2026 at 8:11 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 |
-14.25 5.83% | 230.33 | 29.34 | 18.66 | 5.55 | 74.06 | 7.10 | 18.13 |
| MSFT Microsoft Corporation |
-13.97 3.17% | 427.34 | 37.32 | 29.94 | 13.03 | 12.45 | 13.06 | 24.59 |
| CRWD Crowdstrike Holdings Inc |
-21.34 2.78% | 747.61 | - | 89.29 | 23.70 | 24.81 | 21.91 | 577.82 |
| PANW Palo Alto Networks Inc |
-16.75 5.64% | 280.43 | 44.57 | 45.05 | 11.98 | 20.70 | 11.82 | 77.11 |
| SNPS Synopsys Inc |
-10.33 2.03% | 498.02 | 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 May 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.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2026 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
