Oracle stock is trading near $140 as investors grapple with the company’s massive artificial intelligence infrastructure spending, even as Wall Street analysts maintain bullish long-term outlooks on the tech giant.
The stock’s decline reflects growing concern over Oracle’s capital expenditure burden. In fiscal 2026, the company spent $55.66 billion on capex, exceeding its prior $50 billion guidance, according to Reuters. That spending spree produced deeply negative free cash flow: Oracle generated $32 billion in operating cash flow but burned through $55.66 billion in capex, resulting in negative free cash flow of $23.7 billion for the year, as reported by Seeking Alpha.
The cash drain has forced Oracle to plan major fundraising. The company announced plans to raise nearly $40 billion in debt and equity in fiscal 2027 to continue its data center expansion, Reuters reported. Oracle’s existing debt load stood at roughly $99.6 billion, according to Money Morning, adding to investor anxiety about leverage.
Despite the stock’s 60% decline from its 52-week high of $345, Wall Street has not turned bearish. According to TipRanks, the average analyst price target sits at $263.86, implying 87% upside from current levels. Stock Analysis reports 43 analysts rate the stock “Buy,” with a 12-month target of $251.85. Bank of America reiterated its buy rating and $240 price target on June 14, 2026, even after the post-earnings selloff, according to The Street.
The disconnect between the stock price and analyst targets reflects a bet that Oracle’s massive infrastructure buildout will eventually pay off. The company boasts a $523 billion backlog of remaining performance obligations and reported cloud infrastructure revenue growth of 84% in recent quarters, according to sources citing its earnings reports. Analysts argue that if Oracle successfully executes on its data-center expansion and monetizes its AI-driven backlog, the stock could recover sharply.
Sources
- Reuters — Oracle’s FY2026 capex of $55.66 billion, plans to raise $40 billion in debt and equity for FY2027
- Seeking Alpha — Negative free cash flow of $23.7 billion in FY2026 despite $32 billion operating cash flow
- Money Morning — Oracle’s existing debt of $99.6 billion
- TipRanks — Average analyst price target of $263.86
- Stock Analysis — 43 analysts rate ORCL “Buy” with 12-month target of $251.85
- The Street — Bank of America’s buy rating and $240 price target as of June 14, 2026
