Oracle’s Q2 results left the market wanting more, with analysts forecasting nearly 50% upside. The embedding of AI throughout its stack will drive long-term growth. Highlights include chip neutrality and cloud network opportunities with major companies. Nvidia’s results indicate strong AI capacity demand, while Oracle’s strong revenue growth and margins show promise for sustained growth.

Oracle’s FY2026 Q2 report had mixed results, with $16.06 billion in net revenue, up nearly 14% from the previous year. Cloud revenue saw significant growth, with multicloud leading the way. Despite slower operating income growth, the increase in remaining performance obligation (RPO) hints at future revenue gains. Adjusted EPS outpaced consensus by 37%.

Analysts have expressed mixed sentiment post-Q2 report, with concerns over shortfalls. However, no immediate rating or price target changes were made, indicating a positive longer-term outlook. The coverage of Oracle has increased, leading to numerous upgrades and an above-consensus price target with potential 50% upside. The rebound may trigger consolidation and a market rally in early to mid-2026.

Read more at Yahoo Finance: Why Its AI Pipeline Could Drive a 2026 Rally