Oracle (NYSE:ORCL) Shares Down 3.7% – Here’s Why

Shares of Oracle Corporation (NYSE:ORCL) fell 3.7% on Tuesday . The stock traded as low as $144.24 and last traded at $145.43. 28,247,315 shares changed hands during mid-day trading, a decline of 4% from the average daily volume of 29,438,270 shares. The stock had previously closed at $151.05.

Oracle News Roundup

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Expanded AWS partnership supports cloud growth. Oracle and Amazon Web Services expanded their long-term collaboration, accelerating enterprise migration to Oracle AI Database@AWS. The service is now available in 22 AWS regions, while Exadata Database Service on Exascale Infrastructure adds flexible, pay-per-use capacity. Broader AWS distribution could help Oracle win more large enterprise workloads and boost cloud revenue. Oracle and AWS Deepen Strategic Collaboration
• Positive Sentiment: Quantum computing adds a new growth narrative. Oracle is partnering with Quantinuum to bring its Helios quantum computer to Oracle Cloud Infrastructure alongside high-performance computing and GPU resources. Although commercial revenue is likely longer term, the deal strengthens Oracle’s positioning in hybrid AI and emerging enterprise computing. Oracle and Quantinuum Partner on Quantum Computing
• Positive Sentiment: AI infrastructure demand remains a tailwind. Strong results from neocloud companies CoreWeave and Nebius highlighted accelerating demand for AI computing, supporting expectations for Oracle’s AI-related cloud backlog and infrastructure business. Oracle’s latest quarterly results also exceeded analyst estimates, with revenue up 20.6% year over year.
• Neutral Sentiment: Technical momentum has improved. ORCL moved above its 50-day moving average, a short-term bullish signal, but remains below its 200-day average. This suggests improving momentum without confirming a longer-term trend reversal. Oracle Crosses Above 50-Day Moving Average
• Negative Sentiment: AI spending and debt are raising execution concerns. Reports say Oracle is considering another round of job cuts after reducing its workforce by 13% in fiscal 2026. The potential cuts reportedly reflect pressure from large AI infrastructure investments and rising debt, creating concerns about cash flow and profitability. Oracle Weighs Another Round of Job Cuts
• Negative Sentiment: Bearish sentiment remains a risk. Investor Michael Burry reportedly added to his short position in Oracle, arguing that AI-related valuations resemble a late-stage boom. The trade does not change Oracle’s fundamentals but may reinforce volatility and skepticism about whether future AI returns will justify current capital spending.

Analysts Set New Price Targets

Several equities research analysts recently commented on the company. Morgan Stanley reaffirmed a “mixed” rating on shares of Oracle in a research report on Thursday, June 11th. CLSA began coverage on shares of Oracle in a research note on Monday, July 20th. They set a “hold” rating and a $145.00 target price on the stock. UBS Group dropped their price target on shares of Oracle from $285.00 to $245.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. Mizuho set a $320.00 price target on shares of Oracle in a research note on Wednesday, June 3rd. Finally, Scotiabank restated an “overweight” rating on shares of Oracle in a research report on Thursday, June 11th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $263.97.

Oracle Price Performance

The firm has a 50-day simple moving average of $152.76 and a 200-day simple moving average of $161.83. The firm has a market capitalization of $450.57 billion, a PE ratio of 26.74, a PEG ratio of 0.91 and a beta of 1.72. The company has a debt-to-equity ratio of 3.21, a current ratio of 1.12 and a quick ratio of 1.12.

Oracle (NYSE:ORCL) last released its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, beating the consensus estimate of $1.96 by $0.15. The firm had revenue of $19.18 billion during the quarter, compared to analyst estimates of $19.10 billion. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The business’s revenue for the quarter was up 20.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.70 EPS. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. As a group, equities analysts forecast that Oracle Corporation will post 6.47 earnings per share for the current year.

Oracle Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were given a $0.50 dividend. The ex-dividend date was Friday, July 10th. This represents a $2.00 annualized dividend and a yield of 1.3%. Oracle’s dividend payout ratio (DPR) is presently 34.31%.

Insider Buying and Selling at Oracle

In other news, Vice Chairman Jeffrey Henley sold 400,000 shares of the business’s stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total transaction of $63,664,000.00. Following the completion of the sale, the insider owned 400,000 shares of the company’s stock, valued at $63,664,000. The trade was a 50.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Oracle

Several institutional investors and hedge funds have recently bought and sold shares of ORCL. Mpwm Advisory Solutions LLC raised its position in Oracle by 76.9% during the third quarter. Mpwm Advisory Solutions LLC now owns 115 shares of the enterprise software provider’s stock worth $32,000 after acquiring an additional 50 shares during the period. Sherman Asset Management Inc. lifted its holdings in Oracle by 5.5% during the first quarter. Sherman Asset Management Inc. now owns 1,054 shares of the enterprise software provider’s stock valued at $155,000 after purchasing an additional 55 shares in the last quarter. Southern Capital Advisors LLC grew its position in shares of Oracle by 1.3% in the first quarter. Southern Capital Advisors LLC now owns 4,446 shares of the enterprise software provider’s stock valued at $654,000 after purchasing an additional 57 shares during the period. Talisman Wealth Advisors LLC increased its stake in shares of Oracle by 1.9% during the second quarter. Talisman Wealth Advisors LLC now owns 3,086 shares of the enterprise software provider’s stock worth $675,000 after purchasing an additional 59 shares in the last quarter. Finally, Global Financial Private Client LLC increased its stake in shares of Oracle by 0.8% during the first quarter. Global Financial Private Client LLC now owns 7,836 shares of the enterprise software provider’s stock worth $1,153,000 after purchasing an additional 59 shares in the last quarter. 42.44% of the stock is currently owned by hedge funds and other institutional investors.

About Oracle

Oracle Corporation is a multinational technology company that develops and sells database software, cloud engineered systems, enterprise software applications and related services. The company is widely known for its flagship Oracle Database and a portfolio of enterprise-grade software products that support data management, application development, analytics and middleware. Over recent years Oracle has expanded its focus to include cloud infrastructure and cloud applications, positioning itself as a provider of both platform and software-as-a-service solutions for large organizations.

Oracle’s product and service offerings include Oracle Database and the Autonomous Database, Oracle Cloud Infrastructure (OCI), enterprise resource planning (ERP), human capital management (HCM) and supply chain management (SCM) cloud applications (often grouped under Oracle Fusion Cloud Applications), middleware such as WebLogic, and developer technologies including Java and MySQL.