Oracle (ORCL) and its upcoming earnings report are in focus as a potential decider of which way AI stocks will move in 2026. The artificial-intelligence trade that has fueled the market’s rally can swing in either direction this week after the report. Oracle is scheduled to report earnings after the closing bell on Wednesday, with analysts anticipating growing revenue and profits. Options pricing also suggests traders expect Oracle’s stock could move nearly 10% in either direction after its results.

Overall, analysts are expecting Oracle to post adjusted earnings of $1.64 per share, up 12% year over year, according to FactSet. Sales for the November-ended quarter are also seen rising 12% to $16.2 billion, based on analyst consensus forecast.

Oracle (ORCL) shares hit a record high following the company’s last quarterly report in September. Now the shares could see a repeat pattern this time around according to several analysts. Bernstein’s Mark Moerdler set a $364 price target, signaling roughly 65% upside. He highlighted Oracle’s addition of over $300 billion in incremental business in recent months, despite a three-month stock decline. Should ORCL stock see a boom following a solid earnings report, it’s also expected to send other AI stocks like Nvidia and AMD higher, per Barclays analyst Raimo Lenschow.

“We expect Oracle’s fiscal Q2 earnings to be another significant event, particularly as sentiment for the AI infrastructure market has turned more negative in recent months from elevated AI bubble fears and financing concerns for both Oracle and key customers (OpenAI),” Lenschow wrote. “In our view, these fears have created an ‘all or nothing’ mindset around Oracle shares, evidenced by the shares currently sitting 10% below levels before Oracle’s Q1 earnings, despite consensus fiscal year 2029 total revenue and adjusted EPS estimates increasing roughly $64 billion and roughly $4 since then, respectively.”