Mizuho sets a $320 target for ORCL, citing strong Q4 2026 earnings potential, but shares drop 6% on cash flow concerns.
Oracle (NYSE: ORCL) stock declined 6% in early trading Wednesday, paring its 52-week gain of 45.5%. The drop contrasts with Mizuho’s $320 price target, up from the current $230 level.
Mizuho analyst Siti Panigrahi expects Oracle to report solid fiscal Q4 2026 earnings on June 10, with 17% sales growth and a potential doubling of that rate in fiscal 2027. The company’s $100 billion backlog, driven by AI demand, underpins the outlook.
Investors remain cautious about Oracle’s capital spending, which may require up to $100 billion to expand data center capacity. Panigrahi forecasts free cash flow turning positive by 2029, easing borrowing concerns.