Why Now Is the Time to Buy Oracle Stock
Key Points
Oracle's backlog grew 325% year over year, reaching $553 billion in the third quarter of fiscal 2026.
The company anticipates total revenue reaching $90 billion in 2027.
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Oracle (NYSE: ORCL) stock skyrocketed to an all-time high in September 2025, but has since plummeted more than 57%, down to about $138 per share as of April 11. A broader technology sell-off coincided with nervous investors questioning Oracle's heavy capital expenditures, sending the stock downward. For opportunistic and patient investors, this has created an excellent window to purchase shares of the technology giant.
Oracle has a tremendous backlog. The company's Remaining Performance Obligations (RPOs) hit $553 billion in the third quarter of Oracle's 2026 fiscal year. This RPO level is up 325% year over year.
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In its latest quarterly report, Oracle's overall revenue rose 22% year over year. In the cloud infrastructure division, Oracle reported a spectacular 84% increase in revenue, bringing the segment closer to $5 billion.
Image source: Getty Images.
Yes, Oracle has plans to spend aggressively, but with a strong backlog and growing demand, that spending is largely justified. Even with high capex, Oracle reaffirmed its 2026 fiscal year guidance and raised its 2027 guidance. The company believes that revenue could reach $90 billion in 2027.
Near-term volatility has created an opportunity to buy Oracle at a reasonable price. The stock's forward price-to-earnings (P/E) ratio is down to about 18, and the enterprise value-to-EBITDA ratio is approximately 17.5. These valuation metrics suggest that the stock is much more fairly priced than it was in the fall of 2025.
Oracle has high revenue visibility through at least the next couple of years. Long-term investors should see the stock's rough patch in 2026 as an opportunity instead of a threat. Now is the time to buy Oracle stock.
Should you buy stock in Oracle right now?
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Catie Hogan has positions in Oracle. The Motley Fool has positions in and recommends Oracle. The Motley Fool has a disclosure policy.
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