Oracle stock price falls after 30% surge in three sessions; what’s next?

Oracle Corporation stock price ended over 1% lower on Tuesday, snapping a three-session rally amid profit booking following a sharp run-up. The NYSE-listed technology stock closed 1.44% lower at $244.58 apiece.

Over the previous three trading sessions, Oracle share price had surged nearly 30%. The stock has gained 18% over the past six months, while rising 25% year-to-date (YTD). On a one-year basis, Oracle stock price has delivered returns of approximately 45%.

On Tuesday, June 2, Oracle Corporation shares underperformed the broader US stock market, despite marginal gains across major Wall Street indices. The Dow Jones Industrial Average advanced 0.45%, the S&P 500 gained 0.13%, while the Nasdaq Composite edged up 0.03%.

Oracle layoffs

Oracle Corporation is entering the final phase of what is expected to be its largest workforce reduction, with thousands of employees scheduled to complete their separation between June 1 and June 15.

The company is expected to lay off nearly 30,000 employees, representing approximately 18% of its global workforce.

According to a report by Tech Times, Oracle executives have indicated that the layoffs are part of a broader strategy to reallocate resources toward high-growth artificial intelligence (AI) businesses amid surging demand for computing capacity.

Oracle earnings

Investor focus is likely to remain on Oracle shares as the company prepares to announce its fourth-quarter earnings for fiscal year 2026 on June 10.

For the fiscal third quarter ended February 28, 2026, Oracle reported strong revenue growth, although its free cash flow (FCF) declined sharply, recording an outflow of nearly $11.5 billion.

Oracle’s total Q3 revenue rose 22% year-on-year (YoY) to $17.2 billion. Cloud revenue increased 44% in US dollar terms and 41% in constant currency to $8.9 billion. Software revenue grew 3% in US dollar terms but declined 1% in constant currency to $6.1 billion.

The company reported Q3 FY2026 earnings per share (EPS) of $1.79, surpassing analysts’ consensus estimate of $1.70.

For the fourth quarter of fiscal year 2026, Oracle expects total revenue growth of 18% to 20% in constant currency and 19% to 21% in US dollar terms. Cloud revenue is projected to grow between 44% and 48% in constant currency, and 46% to 50% in US dollar terms.

Oracle expects non-GAAP EPS to grow between 15% and 17%, ranging from $1.92 to $1.96 in constant currency and between $1.96 and $2.00 in US dollar terms.

For fiscal year 2026, the company expects revenue of $67 billion and capital expenditure of $50 billion. Oracle has also raised its total revenue guidance for fiscal year 2027 to $90 billion.

Technical outlook

Oracle stock price has broken out of a weekly three-tight-closes pattern near the $190 level and is currently trading around $244, signalling strong relative strength and sustained momentum, according to Anshul Jain, Head of Research at Lakshmishree Investments.

“The breakout signifies institutional accumulation and continuation of the prevailing uptrend rather than a short-term spike. Price action remains firmly constructive, with unmitigated supply zones on the weekly charts placed near $270 and $285, making them the next logical targets for bulls. Daily and monthly moving averages are already aligned in a bullish trajectory, while weekly averages are beginning to turn higher, reinforcing the strength of the emerging trend,” said Jain.

According to him, as long as Oracle stock price sustains above the breakout zone, momentum is likely to remain firmly in favour of buyers.

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