Where Will Oracle Stock Be in 1 Year?

The past year has been a forgettable one for Oracle (ORCL -0.04%) investors, as shares of the cloud infrastructure giant have shed 54% of their value during this period.

This sharp drop in Oracle stock is primarily due to concerns about the massive debt the company has been taking on to fund the build-out of artificial intelligence (AI) data centers. However, Wall Street anticipates a major turnaround in Oracle’s fortunes over the coming year.

Let’s see what Wall Street expects from Oracle stock and check if the AI infrastructure giant can indeed achieve the upside the market expects it to deliver in the next one year.

Image source: The Motley Fool.

Oracle could jump over 80% in a year, according to Wall Street

Oracle’s 12-month median price target of $240 implies an 84% jump from current levels. Another important point worth noting is that 36 of the 45 analysts, or 80%, rate the stock as a buy.

ORCL – Oracle

$130.48-$0.05 (-0.04%)

NYSE · As of 9:58 AM ET 10/28/26

It is easy to see why Oracle is a Wall Street favorite. The company reported an incredible backlog of $664 billion in the first quarter of fiscal 2027 (which ended on Aug. 31). Oracle’s remaining performance obligation (RPO), which refers to the total value of a company’s unfulfilled contracts, is poised to drive stronger growth for the company over the coming year.

Oracle points out that its cloud infrastructure revenue increased by 121% in fiscal Q1. That was an improvement over the 93% year-over-year growth in cloud infrastructure revenue the company reported in the fourth quarter of fiscal 2026. So, Oracle is now converting its backlog into revenue at a stronger pace.

Even better, the company expects its cloud infrastructure revenue growth to accelerate for the rest of the fiscal year, driven by stronger conversion of its RPO into revenue. Not surprisingly, Oracle is anticipating a 34% increase in revenue in fiscal 2027 to at least $90 billion. What’s more, analysts are expecting Oracle’s revenue to increase at a stronger pace of 46% in fiscal 2028 to $131.8 billion.

This potential acceleration in Oracle’s growth should ideally be rewarded with a premium valuation, which is why I expect the stock to easily achieve the price target discussed earlier.

The stock’s attractive valuation should pave the way for solid upside

Oracle trades at just 5 times sales, a discount to its five-year average sales multiple of 6.6. For comparison, the tech-laden Nasdaq Composite index has a price-to-sales ratio of 5.1. Ideally, Oracle deserves to trade at a premium due to its huge RPO and its improving growth trajectory.

Assuming Oracle trades at even 7 times sales at the end of fiscal 2028, slightly higher than its five-year average sales multiple, its market cap could reach $923 billion (based on the $131.8 billion estimate noted earlier). That’s 133% higher than Oracle’s current market cap, indicating that the stock is poised for healthy gains over the next year and a half (as its fiscal 2028 will end in August that year).

As such, Oracle can indeed achieve the 12-month Wall Street target and then head higher, given its strong growth prospects and attractive valuation.

Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.