Key Stats for Oracle Corporation Stock
- Price: $201 (June 10, 2026)
- Q4 FY2026 Total Revenue: $19.2B, +21% YoY
- Q4 FY2026 Non-GAAP EPS: $2.11, +24% YoY
- Q4 FY2026 Cloud Infrastructure Revenue: $5.8B, +93% YoY
- Q4 FY2026 Total Cloud Revenue: $9.9B, +47% YoY
- FY2027 Non-GAAP EPS Guidance (raised): $8.05, +18% in constant currency
- TIKR Model Price Target: approximately $602
- Implied Upside: ~199%
Oracle Stock Delivers a Record Quarter as Cloud Infrastructure Revenue Nearly Doubles
Oracle Corporation (NYSE: ORCL) reported record Q4 FY2026 results on June 10, with total revenue of $19.2 billion growing 21% year-over-year and cloud infrastructure revenue surging 93% to $5.8 billion.
The quarter’s defining number is the $638 billion remaining performance obligation, which grew $85 billion in Q4 alone from $553 billion, providing multi-year contracted revenue visibility that no comparable infrastructure competitor can match.
Cloud infrastructure revenue of $5.8 billion reflects customers choosing Oracle Cloud Infrastructure for both AI workloads and database migration, with 97.5% global GPU utilization confirming that supply is still falling well short of demand.
Hilary Maxson, Chief Financial Officer, stated on the Q4 earnings call that “our strong Q4 results reflect strong customer demand and our growing visibility into future revenues,” underscoring Oracle’s reconfirmation of its long-term Analyst Day targets of 31% revenue CAGR and 28% EPS CAGR through fiscal 2030.
Oracle’s full-stack positioning across infrastructure, database, and cloud applications places it at the center of enterprise AI decisions at a moment when competitors are narrowing to single layers, creating a competitive moat that extends well past the current infrastructure buildout cycle.
Multi-cloud database revenue grew 404% year-over-year in Q4, with bookings up 325%, signaling that Oracle’s database business is entering a second growth phase as enterprises demand AI-ready data infrastructure across cloud environments.
The United States Office of Personnel Management announced an agency-wide award to Oracle for Fusion HCM at the start of FY2027, adding a high-profile government customer win to a quarter that also saw more than 300 Fusion customer additions.
Clay Magouyrk, Chief Executive Officer, stated on the Q4 earnings call that Oracle signed “$67 billion in AI infrastructure contracts this quarter, the majority of which was either bring-your-own hardware or prepaid,” a structure that preserves margins while reducing Oracle’s net capital requirements.
Oracle management guided for FY2027 total revenue growth of 34% in constant currency to approximately $90 billion, and for Q1 FY2027 cloud revenue growth of 58% to 64%, translating the $638 billion RPO backlog into the most precise forward revenue ramp Oracle has ever disclosed.
ORCL Stock’s Revenue Acceleration Arrives as Operating Leverage Offsets Infrastructure Costs
Oracle Corporation stock has delivered a clear operating leverage story across its recent income statement, with operating income growing 27% year-over-year in the quarter ended February 28, 2026, against revenue growth of 22% in the same period.
Revenue has accelerated from 3.3% YoY growth in the quarter ended May 31, 2024, through 11.3%, 12.2%, 14.2%, and 21.7% in successive quarters, a five-quarter deceleration-to-acceleration arc that aligns precisely with Oracle’s data center ramp timeline.
Total operating expenses have declined as a percentage of revenue across the past four quarters, absorbing the gross margin pressure from infrastructure buildout while still expanding the operating margin to 32.7% in the most recent reported quarter from 31.3% a year prior.
Oracle’s gross margin stepped down as infrastructure revenue scaled, from 72.5% in the quarter ended May 31, 2024, to 64.6% in the quarter ended February 28, 2026: a deliberate trade the income statement confirms, with lower gross margins exchanged for a cloud infrastructure business now growing at 93%.
Is Oracle Stock Undervalued in 2026? TIKR’s $602 Model Says Yes
TIKR’s base case values Oracle Corporation stock at approximately $602 by May 2030, implying around 199% total return from the current price of approximately $201, or roughly 32% annualized over 4 years.
If Oracle’s cloud infrastructure business sustains the margin trajectory management described, with return on invested capital in the high 20s at full contract revenue levels, the mid case target of approximately $602 is achievable with modest P/E compression of around 0.5% annually embedded in the model’s assumptions.
Sustained revenue growth at a CAGR around 26% through FY2035, paired with net income margins expanding toward 27%, would support a stock price approaching approximately $1,263 in the high-range model with an annualized return of roughly 32%.
If AI infrastructure demand slows materially or the $70 billion FY2027 net CapEx commitment strains Oracle’s balance sheet beyond the planned $40 billion debt and equity raise, the low case scenario points to approximately $864 with an annualized return of around 20%.
How Did Oracle Perform in Q4 FY2026 Earnings?
Oracle delivered non-GAAP EPS of $2.11 in Q4 FY2026, a 24% increase year-over-year, with total revenue of $19.2 billion growing 21%. Cloud infrastructure revenue drove the headline, rising 93% to $5.8 billion as AI workload demand outpaced supply capacity at 97.5% GPU utilization.
Oracle closed the year with $638 billion in remaining performance obligations, up $85 billion in the quarter, confirming the revenue ramp heading into FY2027.
Management guided for FY2027 non-GAAP EPS of $8.05 and total revenue of approximately $90 billion, representing 34% constant-currency growth.
Is Oracle Stock Undervalued?
TIKR’s base case values Oracle Corporation stock at approximately $602 by May 2030, implying around 199% total return from the current price, or roughly 32% annualized.
Oracle’s cloud infrastructure business grew 93% in Q4 FY2026, and management reconfirmed 31% revenue CAGR and 28% EPS CAGR targets through fiscal 2030.
The key variable is RPO conversion: if the $638 billion backlog translates to revenue on the disclosed timeline, the base case holds with room to spare.
Should You Invest in Oracle Corporation?
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