Is ORCL a good stock to buy? We came across a bullish thesis on Oracle Corporation on Beyond The Hype – Looking Past Management & Wall Street Hype’s Substack by Beyond The Hype and Shilpa Reddy. In this article, we will summarize the bulls’ thesis on ORCL. Oracle Corporation’s share was trading at $178.34 as of April 16th. ORCL’s trailing and forward P/E were 32.02 and 21.14 respectively according to Yahoo Finance.
Oracle Corporation offers products and services that address enterprise information technology environments worldwide. ORCL delivered a strong Q3 FY2026 earnings beat, with revenue of $17.19B (+22% YoY) and non-GAAP EPS of $1.79 (+21% YoY), supported by accelerating cloud momentum and robust AI-driven demand. Total cloud revenue grew 44% YoY, led by IaaS growth of 84% and multicloud database expansion of 531%, highlighting Oracle’s strengthening position as a key hyperscaler alternative in AI infrastructure.
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Remaining performance obligations surged to $553B, reinforcing long-term visibility, with a growing share tied to large-scale AI contracts increasingly funded upfront by customers, significantly reducing Oracle’s capital intensity and financing burden. Investor concerns around balance sheet strain were directly addressed through a successful $30B investment-grade debt raise and planned equity financing, while management emphasized that most AI contracts require limited incremental capital due to customer-supplied or prepaid hardware.
Although margins compressed to 43% (-135bps YoY) due to mix shift and capacity buildout, this reflects intentional investment into high-growth infrastructure that is already driving FY27 revenue guidance higher to $90B. Oracle also secured over 10GW of AI data center capacity with partner funding and improved deployment efficiency by 60%, signaling accelerating execution. SaaS remains resilient, with AI-enhanced development reinforcing ecosystem stickiness, while the strategic TikTok stake adds optionality to non-operating income.
Despite near-term dilution overhang from ATM equity, Oracle’s improved visibility, accelerating AI backlog conversion, and expanding infrastructure footprint position it for sustained revenue compounding and potential multiple rerating as execution risk continues to decline, with additional upside if AI capacity monetization and backlog conversion accelerate further into free cash flow.
Previously, we covered a bullish thesis on Microsoft Corporation (MSFT) by Long-term Investing in February 2025, which highlighted strong AI-driven Azure growth, the OpenAI partnership, and expanding cloud infrastructure despite competitive pressure from low-cost AI models like DeepSeek. MSFT’s stock price has appreciated by approximately 2.56% since our coverage. Beyond The Hype and Shilpa Reddy shares a similar view but emphasizes sustained earnings resilience, AI-led productivity gains, and continued enterprise cloud demand.
Oracle Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 111 hedge fund portfolios held ORCL at the end of the fourth quarter which was 122 in the previous quarter. While we acknowledge the risk and potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ORCL and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
