Oracle Has Fallen 18% in 2026. Wall Street's Top Pick Just Set a $210 Price Target.

<p>What's going on with Oracle (NYSE: ORCL) this year? The stock has struggled through the first few months of 2026 and is down more than 18% after skyrocketing in the third quarter of 2025. The worst may be over now, according to JPMorgan's latest analysis.</p>
<h2>A record quarter lifts the mood</h2>
<p>Oracle just delivered a record quarter, with earnings per share and total revenue both up by more than 20% year over year. Management said this was the first time in over 15 years that Oracle experienced 20% growth in both metrics in the same period.</p>
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<p>JPMorgan quickly upgraded Oracle to Overweight from Neutral following the earnings report. The recent sell-off improved the company's risk-reward profile, according to JPMorgan analyst Mark Murphy. The bank set a $210 price target for Oracle. Barclays also increased its price target for Oracle to $240 following the earnings release. The stock closed still well below targets at $159 on March 12.</p>
<p><a href="https://www.fool.com/investing/how-to-invest/stocks/oracle-stock-forecast/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=488839c5-7c55-40f0-a1b7-2f36a88c79e3">Analysts are bullish on Oracle</a> because many believe the recent sell-off was overblown and that the company now offers a more attractive entry point and fairer valuation. Oracle also successfully secured $25 billion in debt, which eases concerns about its debt rating and the need to raise incremental funds throughout 2026.</p>
<p>There were many concerns about Oracle at the start of the year, which contributed to its stock's decline. From over-concentration in OpenAI to fears about the high cost of AI-related capital expenditures, and more debt financing to meet build-out demand, the extraordinarily high valuation no longer seemed justified.</p>
<p>Since September 2025, Oracle has declined by more than 50% from its 52-week high of $345.</p>
<h2>The massive build-out continues</h2>
<p>The short-term headwinds don't negate the fact that Oracle's Remaining Performance Obligations (RPOs) reached $553 billion in the third-quarter 2026 report, a 325% increase compared to the year prior. RPOs represent non-cancelable future revenue, including invoiced and backlogged contracts. Growing RPOs are a strong signal of continued momentum.</p>
<p>There's no doubt that Oracle's most recent quarter has shifted the narrative among investors and analysts. The company also recently announced it will layoff 12% to 18% of its workforce, between 20,000 and 30,000 jobs, in an effort to improve its cash position.</p>