Oracle Corp stock falls as TD Cowen trims price target amid AI spending and layoffs
Published on 09/01/2026 at 21:22 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Oracle Corp (ISIN US68389X1054) stock has come under renewed pressure on September 1, 2026, as investors digest aggressive AI infrastructure spending, a fresh round of layoff reports and a notable price-target cut by TD Cowen ahead of the company’s next earnings report.
Analyst price target cut hits sentiment
According to an update published by TD Cowen on September 1, 2026, the bank has maintained its Buy rating on Oracle but lowered the price target from USD 300.00 to USD 240.00, a reduction of 20 percent that reflects a more cautious stance on valuation.
The same analysis cites a current Oracle share price of USD 144.13 on September 1, 2026, compared with a GF Value estimate of USD 193.64, implying the stock is trading at a discount of 25.6 percent to that intrinsic value assessment.
MarketBeat data referenced in a separate overview shows that Oracle shares opened at USD 143.97 on September 1, 2026, down 3.5 percent on the day and well below their 52-week high of USD 345.72, with the consensus price target standing at USD 262.39 and the average rating described as Moderate Buy.
Stock performance and DACH trading reference
For German investors following a secondary listing, data from BoersenNews show the Oracle share last quoted at EUR 130.21 on Lang & Schwarz at 12:52:24 on September 1, 2026, unchanged versus the previous day’s close.
A separate intraday snapshot from finanzen.ch points to pronounced selling in New York trading, with the Oracle share down 5.4 percent to USD 141.14 at 20:26 on September 1, 2026, highlighting the volatility around the stock as investors recalibrate expectations.
For chart watchers, analyst commentary compiled by ScanX notes that Oracle shares recently recovered from a July low of USD 114.43 to reach around USD 150.85, but the latest pullback and price-target cut underline how quickly sentiment can shift ahead of key earnings events.
More background on Oracle Corp stock
Further details on Oracle Corp, including additional news and regulatory disclosures, can be found via our topic overview and the company's investor relations section.
Fiscal 2026 results show strong cloud growth
Oracle’s latest reported figures refer to fiscal year 2026, which ended earlier in 2026 and therefore fall within the current freshness window for fundamentals.
According to coverage by Livemint, Oracle generated revenue of USD 67.4 billion in fiscal 2026, an increase of 17 percent year on year, underlining how the company’s pivot toward cloud and AI workloads is feeding through to the top line.
The same report notes that Oracle’s cloud revenue rose 39 percent to USD 34 billion in fiscal 2026, with cloud infrastructure revenue jumping 77 percent to USD 18.1 billion; in the fourth quarter alone, cloud infrastructure revenue surged 93 percent year on year, indicating accelerating demand for compute capacity to train and run AI models.
An in-depth analysis on Mitrade highlights the scale of Oracle’s contracted work, stating that the company ended fiscal 2026 with USD 638 billion of remaining performance obligations, up 363 percent compared with the prior year, with management expecting about 12 percent of that backlog to be recognized as revenue within 12 months and a further 34 percent between 13 and 36 months.
For investors, this backlog matters because it underpins Oracle’s guidance for about USD 90 billion of total revenue in fiscal 2027, up from USD 67.4 billion in fiscal 2026, with fiscal first-quarter revenue expected to grow 27 percent to 29 percent; the same commentary cites management guidance for adjusted earnings per share of USD 8.05 in fiscal 2027, with the stock trading at roughly 19 times that forward figure.
Upcoming earnings and debate over AI investments
Looking ahead, analysts expect the next quarter to show further expansion in Oracle’s cloud business.
ScanX, citing Benzinga data, reports that consensus forecasts for Oracle’s upcoming fiscal first-quarter 2027 results point to revenue of USD 19.0 billion, up 28 percent from USD 14.93 billion in the prior-year quarter, with earnings per share projected at USD 1.67 versus USD 1.47 previously, reflecting both top-line growth and margin leverage.
The same analysis notes that Oracle’s overall cloud and software operations generate around USD 58.5 billion in revenue, with services contributing about USD 5.7 billion and hardware about USD 3.1 billion, illustrating how the group’s business is now heavily weighted toward recurring software and cloud contracts.
However, analysts are divided on how Oracle’s heavy AI-related capital expenditure and rising debt load will play out for shareholders.
ScanX reports that Oracle spent USD 48 billion on capital expenditures in the last fiscal year and plans to raise this to as much as USD 70 billion in fiscal 2027, while other commentary cites infrastructure spending of around USD 55.7 billion in fiscal 2026, reflecting the intense investment cycle required to build globally competitive AI cloud data centers.
One consequence highlighted by CryptoRank is that Oracle’s free cash flow turned negative, with a reported shortfall of USD 23.7 billion and restructuring charges of USD 1.8 billion to USD 2.1 billion adding to near-term pressure on the share price; the same note points out that Oracle closed at USD 149.12 on August 31, 2026, before slipping further in premarket trading on September 1, 2026.
Layoffs and workforce reshaping
The investment push is accompanied by significant workforce changes.
Livemint, citing reports from The Economic Times, notes that Oracle is likely to cut around 3,000 jobs in India as part of a restructuring that reallocates resources toward newer areas such as AI and cloud infrastructure, on top of reductions already announced in the United States.
Commentary from American Bazaar emphasizes that Oracle has not publicly confirmed all details of the latest workforce reduction, but the reported 3,000 positions in India and broader restructuring efforts underline how the company is balancing aggressive technology investments with cost controls and portfolio shifts.
For shareholders, these measures feed into a broader debate: whether Oracle’s strategy of large-scale AI infrastructure spending, backed by a massive USD 638 billion backlog, can deliver the anticipated revenue and earnings growth quickly enough to justify the leverage and restructuring costs.
Cloud infrastructure and product angle
On the operations side, Oracle continues to expand the reach of Oracle Cloud Infrastructure (OCI), which is central to its AI and cloud strategy.
A Business Wire release relayed by CoreSite states that CoreSite, an American Tower company, has launched a new OCI FastConnect on-ramp to the Oracle Cloud San Jose Region at its Silicon Valley data center campus, giving customers private connectivity to four commercial OCI regions in the United States with dedicated bandwidth and reduced latency for high-density workloads.
Through OCI FastConnect and Oracle’s broader multicloud strategy, enterprises can connect their mission-critical applications, databases and blockchain solutions directly to Oracle Cloud, improving performance for AI training, disaster recovery and distributed applications.
Oracle also offers Oracle Blockchain Platform as part of Oracle Cloud Infrastructure, bringing blockchain capabilities into the same stack that powers enterprise databases and ERP systems; coverage in Foreign Policy Journal notes that this integration supports use cases in crypto and digital assets while reinforcing Oracle’s positioning as a broad-based cloud provider.
Oracle Corp stock and investor perspective
In summary, Oracle Corp stock is trading in early September 2026 at around USD 144 in the United States and about EUR 130 on German trading venues, notably below its 52-week high of USD 345.72, while analyst TD Cowen’s reduced price target of USD 240.00 and a consensus target near USD 262.39 still sit significantly above the current level.
As of September 1, 2026, investors are weighing strong fiscal 2026 revenue growth of 17 percent to USD 67.4 billion, cloud infrastructure revenue expansion of 77 percent to USD 18.1 billion and a contracted backlog of USD 638 billion against negative free cash flow, large capital-expenditure plans and restructuring charges linked to workforce reductions.
For retail investors, the key question is how quickly Oracle can convert its AI cloud investments and backlog into sustainable earnings growth in fiscal 2027 and beyond, especially with guidance pointing toward USD 90 billion in revenue and USD 8.05 in adjusted earnings per share while the share price remains volatile around the USD 140 to USD 150 band.
Oracle Corp stock at a glance
- Company: Oracle Corp Inc.
- ISIN: US68389X1054
- Ticker: ORCL
- Trading venue: NYSE; secondary quotation on Lang & Schwarz (Germany)
- Price (as of September 1, 2026, 20:26): 141.14 USD
- Market capitalization: 430,000,000,000 USD (as of September 1, 2026, per recent analysis)
- Sector / Industry: Software and cloud services
- Index membership: S&P 500
