Guggenheim analyst John DiFucci maintains a $400 price target on Oracle, calling it his top software pick for 2026 and implying upside that more than triples the current share price. Oracle has fallen 35% year to date to $124.21, underperforming the S&P 500 by over 45 percentage points, while the consensus Wall Street target of $251.85 implies roughly 103% upside. The selloff accelerated after S&P cut Oracle's credit rating to BBB-, one notch above junk, citing negative free cash flow of $23.69 billion on $55.66 billion in trailing capex and plans for another $70 billion in fiscal 2027 spending. DiFucci argues the pullback ignores a $638 billion remaining performance obligation backlog that surged 363% year over year, with cloud infrastructure revenue up 93% and management reconfirming a $90 billion fiscal 2027 revenue target. He expects free cash flow to rebound sharply starting in fiscal 2029 as infrastructure spend converts to recurring revenue, though risks include potential further credit downgrades, concentration in the OpenAI relationship, and data-center permit challenges.
International Business Machines
Oracle Corporation
