RBC Lowers Oracle (ORCL) PT to $195 While Eyeing 2026 as a Pivotal Year for AI-Driven Growth

Oracle Corporation (NYSE:ORCL) is one of the most buzzing stocks to invest in according to hedge funds. On January 5, RBC Capital analyst Rishi Jaluria lowered the firm’s price target on Oracle to $195 from $250 and kept a Sector Perform rating on the shares. The firm suggested that 2026 will serve as a turning point where the benefits of AI become increasingly visible for companies prepared for enterprise adoption. Enterprise spending is stabilizing and showing signs of recovery in certain sectors, fueled by GenAI innovation. Despite this progress, RBC Capital noted that management teams are maintaining a cautious stance in their early 2026 financial guidance.

Earlier on December 10, Oracle released its FQ2 2026 financial results, highlighted by a 13% year-over-year increase in total revenue to $16.1 billion. A primary driver of this growth was the cloud sector, which now accounts for half of the company’s total revenue. Specifically, total cloud revenue rose 33% to $8 billion, fueled by a 66% surge in cloud infrastructure/OCI and a 177% increase in GPU-related revenue. Within the cloud segment, database services grew by 30%, autonomous database revenue increased by 43%, and cloud applications reached $3.9 billion, up 11%.

Looking toward FQ3, Oracle Corporation (NYSE:ORCL) provided optimistic guidance. Total revenue is expected to grow between 16% and 18%, while cloud revenue is projected to increase by 37% to 41% in constant currency. Oracle’s comprehensive AI-integrated application suites will allow them to outperform peers experiencing a deceleration in the sector.

Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments worldwide.

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