Oracle Gets Mizuho Reaffirmation as Firm Maintains Outperform Despite Share Pullback

Oracle (ORCL, Financials) received a fresh vote of confidence from Mizuho, which reiterated its Outperform rating and $400 price target ahead of the company's fiscal second-quarter results on December 10. The firm said the recent selloff has more to do with investor worries over capital spending than a shift in Oracle's long-term trajectory.

Oracle shares have fallen sharply since their September peak, though they've regained some momentum with an 8% gain over the past week. Mizuho noted concerns around heavy data-center investments and financing needs, citing the company's low current ratio and negative free cash flow over the past year. The firm expects Oracle to rely more on vendor financing and capital leases to help manage costsan approach increasingly common across the AI infrastructure sector.

Wall Street expects fiscal 2026 EPS of $6.98 with 17% revenue growth, and Mizuho anticipates the company will post a solid print next week. Analysts also expect management to address funding plans for cloud expansion, which could help stabilize sentiment.