Oracle Stock Is on Pace for Its Worst Year Since 2001. Here's What Followed Its Only 2 Worse Years.
The year after one of them, shares climbed 84%. The year after the other, they kept sliding.
Oracle stock is experiencing a challenging year in 2026, trading near $113, down 42% from last year's closing price of $194.91, and touching a new 52-week low. This performance puts the stock on pace for its worst calendar year since its 1986 IPO, worse than the 1990 and 2001 downturns. In 1990, Oracle's revenue forecasts were overly optimistic, leading to a first-ever quarterly loss and 400 job cuts.
The company rebounded in 1991 with 12% revenue growth and a net loss reversal. In 2001, the dot-com crash and reduced demand impacted Oracle, as the Nasdaq Composite dropped 21% that year. Unlike previous downturns, Oracle's 2026 performance is largely self-inflicted due to high capital spending. Management expects revenue growth of around 34% this fiscal year, but concerns remain about the company's large cash expenditure.
Despite the challenging outlook, Oracle's stock is trading at 14 times expected earnings, suggesting a potential investment opportunity for those willing to wait for the company's cash flow to improve.
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