Goldman Sachs Slashes PT on Oracle Corporation (ORCL) to $220 From $320

Oracle Corporation (NYSE:ORCL) is one of the most profitable NYSE stocks to buy right now. Goldman Sachs analyst Kash Rangan slashed the price target on Oracle Corporation (NYSE:ORCL) to $220 from $320 on December 12 and maintained a Neutral rating. The analyst told investors that Oracle Corporation (NYSE:ORCL) exhibited modest revenue and cloud-growth shortfalls in fiscal Q2 2026 results, along with free cash flow burn and sharply higher capex. These trends aggravate concerns regarding tenant concentration, financing needs, and valuation.

Rangan added that while management reiterated the fiscal year 2026 guidance and addressed balance sheet-related concerns, the stock’s decline points to a large capex rise with the absence of near-term revenue uplift, softer cloud momentum, uncertainty regarding the sustainability of OCI’s bring-your-own-chips and leasing mix, and concerns associated with OpenAI’s commitments.

Oracle Corporation (NYSE:ORCL) announced its fiscal Q2 2026 results on December 10, reporting that total quarterly revenues for the quarter rose 14% in USD and 13% in contant currency to $16.1 billion. Cloud revenues experienced a 34% growth in USD and 33% in constant currency to  $8.0 billion, but software revenues dropped 3% in USD and 5% in constant currency to $5.9 billion.

Management further reported that the total remaining performance obligations (RPO) rose 438% year-over-year in USD to $523 billion, supported by new commitments from Meta, NVIDIA, and others.

GAAP earnings per share for the quarter rose 91% to $2.10, while non-GAAP earnings per share was up 54% to $2.26. Oracle Corporation (NYSE:ORCL) stated that its GAAP and non-GAAP earnings per share were both positively affected by a $2.7 billion pre-tax gain in the sale of the company’s interest in its Ampere chip company.

Oracle Corporation (NYSE:ORCL) provides products and services addressing aspects of corporate IT environments, including applications and infrastructure technologies. The company’s operations are divided into the following business segments: Cloud and License, Hardware, and Services.

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Disclosure: None. This article is originally published at Insider Monkey.