Oracle stock price falls after 30% surge in three sessions; what’s next?

Oracle Corporation’s stock price fell 1.44% to $244.58 on Tuesday, ending a three-session rally where shares surged nearly 30%. The decline followed profit-taking after a sharp run-up, with the stock still up 18% over six months and 25% year-to-date. The company is executing its largest workforce reduction, with nearly 30,000 employees—about 18% of its global workforce—scheduled to complete separation by June 15. Oracle executives cited a strategic shift to prioritize high-growth artificial intelligence businesses amid rising demand for computing capacity. For the fiscal third quarter ended February 28, 2026, Oracle reported revenue of $17.2 billion, a 22% year-over-year increase, driven by a 44% rise in cloud revenue to $8.9 billion. However, free cash flow turned negative at nearly $11.5 billion, while software revenue grew modestly at 3% in USD terms. Earnings per share reached $1.79, surpassing analyst estimates of $1.70. Oracle anticipates 18% to 20% revenue growth in constant currency for Q4 FY2026, with cloud revenue projected to expand 44% to 48%. Non-GAAP earnings per share are expected to grow 15% to 17%, between $1.92 and $2.00. For FY2026, the company forecasts $67 billion in revenue and $50 billion in capital expenditure, raising its FY2027 revenue guidance to $90 billion. Analysts at Lakshmishree Investments noted the stock’s breakout above $190, signaling sustained momentum with targets near $270 and $285. The company’s fourth-quarter earnings, set for June 10, will remain a key focus for investors amid ongoing restructuring and AI-driven growth strategies.