Oracle Corporation faces market scrutiny over rising capital expenditures

Oracle Corporation is facing market volatility following its fiscal 2027 first-quarter results. While the company reported strong revenue and profit growth, investors reacted negatively to a significant decline in free cash flow. Capital expenditures rose sharply to $28.499 billion in the first quarter of fiscal 2027, compared to $8.502 billion in the same period the previous year.

Financial analysts have provided mixed outlooks. DZ BANK maintained a ‘Buy’ rating but lowered its fair value estimate from $280 to $225, noting that while operations are running smoothly, high corporate debt and concerns regarding AI development speeds have hindered a price rally. RBC lowered its price target from $190 to $165 while maintaining a ‘sector perform’ rating. Conversely, UBS raised its price target from $245 to $250 with a ‘Buy’ rating, and JPMorgan maintained an ‘overweight’ rating with a $200 target.

The stock has struggled to find a support level after dropping below $150, with technical analysts watching the $140 and $133 levels closely.