Prediction: Oracle Will End The Year at This Price
Prediction: Oracle Will End The Year at This Price
Vandita JadejaWed, September 2, 2026 at 3:00 PM UTC
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Quick Read -
Oracle (ORCL) trades at just 16x forward earnings despite 93% cloud infrastructure revenue growth and a record $638 billion backlog.
Cash burn of -$23.7 billion and a $20 billion equity raise have dragged ORCL down 23% year to date despite record bookings.
Management's 28% EPS CAGR target through FY2030 and an 87.5% earnings beat probability make a run toward $250 defensible.
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Oracle (NYSE:ORCL) has become one of the most polarizing names in mega-cap tech. Cloud infrastructure revenue grew 93% in Q4 FY2026 and the remaining performance obligation backlog exploded to $638 billion.
Yet shares are down 22.75% year to date, closing at $149.12. The question I want to answer: can Oracle end 2026 at $250, or is the market right to punish this stock?
ORCL Price Target — 24/7 Wall St.Why Oracle Shares Are Stuck Despite Record Bookings
Cash burn is doing the damage. Fiscal 2026 free cash flow came in at -$23.7 billion, capital expenditures hit $55.7 billion, and total liabilities now sit at $218.7 billion.
Oracle also plans to raise roughly $40 billion in debt and equity this fiscal year, including a $20 billion at-the-market equity issuance. That is textbook dilution risk. With a beta of 1.72, ORCL swings hard both ways. The stock is off 33.3% over the last year. The recent price action is turning though: up 4.68% in a week and 14.82% in a month. Bulls are trickling back in.
Wall Street Sees 64% Upside. Our Model Sees 44%
The consensus analyst price target is $244.12, backed by 8 strong buys, 29 buys, 6 holds, and 1 sell. That works out to 84% bullish coverage. Our model lands more conservatively at a base case of $215.24, or 44.34% upside, with high model confidence. The bull scenario reaches $350.43, while the bear case still lands at $181.58.
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ORCL Analyst Ratings — 24/7 Wall St.
My take is that Wall Street is right to be aggressive here. Earnings growth of 21.9% year over year, with forward EPS estimates being revised higher across both FY27 and FY28, gives the multiple room to breathe once cash flow inflects.
Path to $250 Per Share
Reaching $250 from today's price of $149.12 would require a gain of 67.7%. With forward EPS of $9.30, a price of $250 implies a forward P/E of roughly 27x. Our base case of $215.24 already implies about 20x, meaning the bold target needs about 7x of additional multiple expansion.
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ORCL Price Scenario — 24/7 Wall St.
I think that expansion is defensible. Multi-cloud AI Database revenue jumped 404% in Q4. Global GPU utilization sits at 97.5%. Co-CEO Clay Magouyrk was blunt on the call: "There's still a massively higher demand than there is supply."
Management reconfirmed a long-term 28% EPS CAGR through fiscal 2030. If Oracle beats its September 10 earnings report (Polymarket implies 87.5% odds it does) and RPO conversion accelerates, 27x forward earnings becomes a real conversation. The primary risk: poorly timed dilution from the ATM offering weighs on EPS.
Where Oracle Trades Today Versus Its Earnings Power
On forward EPS of $9.30, ORCL currently trades at roughly 16x. That is cheap for a business guiding to $90 billion in FY27 revenue and $8.05 in non-GAAP EPS.
Shares sit closer to the $114.50 52-week low than the $341.82 52-week high, resting 29% below that peak. Over the past decade the stock is up 319.61%. This valuation reset has created a setup where any clean operational beat gets rewarded aggressively.
Is $250 Realistic? Here's My Verdict
Hitting $250 by year-end 2026 requires a 67.7% rally in four months. That is a stretch, and I want to be upfront about it.
Three things make the setup credible though: the September 10 earnings report as a near-term catalyst, RPO conversion picking up as new gigawatts come online, and confirmation that FY27 EPS growth of 18% stays intact. A stumble on cash flow or a poorly received equity raise would derail everything. Returns at this level shouldn't be expected every year, but we've outlined the blueprint for how Oracle could reach $250 in 2026.
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Source: “AOL Money”
