Oracle Falls 4.1% as TD Cowen Cuts Target to $240, Keeps Buy Rating

Oracle (NYSE:ORCL), the enterprise-software and AI cloud giant, fell roughly 4.1% to $142.995 on Tuesday after TD Cowen cut its price target from $300 to $240. The firm kept its Buy rating but signalled that Oracle's October analyst meeting will need to deliver convincing cloud-growth targets and a credible path through its heavy AI spending cycle.

Oracle's fiscal 2026 revenue rose 17% to $67.4 billion, while cloud-infrastructure revenue jumped 77% to $18.1 billion. Remaining performance obligations climbed to $638 billion. Free cash flow, however, sank to negative $23.7 billion as the company raced to build the data-center capacity needed to serve that demand.

Cowen's reduced $240 target still implies roughly 67.8% upside from $142.995. The shares also trade about 26.15% below their $193.64 GF Value estimate, according to GuruFocus. Oracle's pipeline is equal to about 9.5 times annual revenue, leaving the harder task of turning that backlog into profit against a backdrop of cash burn, debt and potential dilution.