Oracle in 2026: Looks like a "hard pass," but actually full of strength

If you only look at Oracle (NYSE: ORCL) stock price corrections in 2025, you might choose to miss out. But digging into the data reveals that this wave of adjustment actually occurred amid a surge of capital inflows—precisely from investors optimistic about AI prospects who continue to bet heavily. Short-term volatility masks the long-term logic: Oracle has become an indispensable core hub in the global data center ecosystem.

Data Center Expansion: Reserved 43% Growth Potential

Oracle currently operates nearly 150 data centers worldwide, with 64 more under construction. What does this mean? 43% capacity growth, with internal metrics showing these capacities are already fully booked. Looking at FY2026 Q2 performance, remaining performance obligations (RPO) increased by 438% year-over-year—direct proof of strong demand.

Additionally, Oracle is planning “gigawatt-scale” data centers to support advanced HPC computing. Just in cloud regions, over 100 have been deployed, including 51 in 26 countries, 23 multi-cloud zones (a key competitive advantage), and 29 dedicated clouds—including leading model builders like OpenAI.

Position Among Hyperscalers: From 3% to More

While Oracle holds only a 3% share of the global data center market, the entire hyperscaler group controls about 44% of the global data center industry, expected to surpass 60% in the coming years. As a member of this group, Oracle is gaining market share in this highly competitive landscape, while also maintaining a strong position outside hyperscalers—serving enterprise, private AI developers, and sovereign regions.

True Moat: Multi-Cloud Integration Capability

Data centers are fundamental, but Oracle’s real competitive edge lies in multi-cloud operational capabilities. Enterprises and large language model builders need to train, infer, and operate across multiple cloud platforms. Oracle has deeply embedded itself within all hyperscale networks, providing users with a unified cross-cloud experience.

More importantly, enterprises and AI developers can choose the models, GPUs, and computing resources they need through Oracle, without being locked into a single cloud provider. Oracle has become a centralized hub in the global tech industry for AI, AI infrastructure, and AI services—an irreplaceable position.

Revenue Growth Timeline: Reversal Expected by 2026

Market anxiety in 2025 stems from the belief that growth isn’t happening as fast as expected. But that’s normal—building data centers and GPU architectures takes time. The key data point is that Oracle’s revenue growth in FY2026 Q1 and Q2 has already begun to accelerate sequentially and year-over-year.

Expected growth for 2026 is about 17%, with potential doubling by the end of 2028. The only variable is the timeline for data center deployment.

From “Hard Pass” to “Hard Power”: Market Sentiment Shift

In December, analyst target price adjustments triggered sell-offs, but these were more technical adjustments rather than fundamental deterioration. MarketBeat’s 23 revisions and initial coverage show new target prices aligned with market consensus—starting from key support levels, with 60% upside potential.

Interestingly, analyst coverage in 2025 increased from 29 firms at the end of 2024 to 43 (a 48% increase); sentiment remains “moderate buy”; the consensus target price has risen 70% over the past 12 months. This adjustment instead confirms that the long-term bullish trend is gradually materializing.

All it takes is one catalyst—a sufficiently excellent earnings report to confirm or raise the target price.