RBC raises Oracle (ORCL.N) price target to $190 from $160

RBC Capital has raised its price target for Oracle (NYSE:ORCL) to $190 from $160, while maintaining a "Sector Perform" rating ahead of fourth-quarter fiscal 2026 earnings. The firm attributed the adjustment to peer multiple expansion, noting that Oracle trades at a P/E ratio of 42.64. Despite this, InvestingPro analysis suggests overvalued relative to its fair value.

Oracle has been undergoing significant strategic shifts, including a 18% reduction in workforce—approximately 30,000 jobs—to redirect resources toward its AI data center buildout. The Stargate project, a key component of Oracle’s AI infrastructure, has also seen structural changes, with OpenAI shifting to bilateral capacity leases. These developments may alter Oracle’s ownership and financing requirements.

RBC Capital will closely monitor Oracle’s multi-year capital expenditure framework, the impact of the Stargate restructuring, and the pace of data center deployments. Oracle’s remaining performance obligations exceeded $550 billion in Q3 FY2026, a figure RBC views as a key indicator of future growth.

Other analysts have also adjusted their outlooks. Mizuho maintains an "Outperform" rating with a $320 price target, while UBS and Scotiabank raised targets to $285 and $290, respectively. With Oracle’s earnings announcement approaching, investor attention remains focused on its strategic execution and AI growth trajectory.