Software and cloud computing company Oracle (ORCL) is scheduled to announce its results for the second quarter of Fiscal 2026 after the market closes on Wednesday, December 10. Oracle stock has declined 13% over the past month but is up 31% year-to-date. The recent sell-off was sparked by concerns about the company’s debt levels and customer concentration risk related to the $300 billion OpenAI deal. According to TipRanks’ Options Tool, options traders expect about a 10.84% move in either direction in ORCL stock in reaction to Q2 FY26 results.
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This implied move is lower than ORCL stock’s average post-earnings move (in absolute terms) of 13.5% over the past four quarters.
Wall Street expects Oracle to report adjusted earnings per share (EPS) of $1.64, reflecting 11.6% year-over-year growth. Revenue is expected to grow by 15% to $16.19 billion.
Analysts’ Views Ahead of ORCL’s Q2 Earnings
Ahead of the Q2 results, TD Cowen analyst Derrick Wood reiterated a Buy rating on Oracle stock with a price target of $400. The 4-star analyst noted the selloff in ORCL stock due to concerns about an AI bubble and “stretched OAI [OpenAI] commitments across the DC [data center] landscape.” He also highlighted significant exposure to OpenAI, as well as elevated capital expenditures and debt leverage.
Wood thinks that, given recent power supply constraints related to CoreWeave (CRWV), a reaffirmation of the Oracle Cloud Infrastructure (OCI) growth acceleration curve through FY26 can address capacity expansion worries. At about 22x calendar year 2027 EPS, Wood noted that ORCL shares are trading at trough valuations, with the possibility of Q2 acting as a catalyst to reverse the recent adverse sentiment.
Meanwhile, RBC Capital analyst Rishi Jaluria reiterated a Hold rating on ORCL stock with a price target of $310. Jaluria believes that investors are increasingly cautious about the customer concentration risk in the OCI business, potential margin contraction, and incremental leverage.
Is ORCL Stock a Good Buy?
Heading into Q2 earnings, Wall Street has a Moderate Buy consensus rating on Oracle stock based on 25 Buys, 11 Holds, and one Sell recommendation. The average ORCL stock price target of $350.27 indicates 61% upside potential.
