Here’s Why Oracle Traded (ORCL) Lower in Q1

Here’s Why Oracle Traded (ORCL) Lower in Q1 Soumya Eswaran Wed, June 17, 2026 at 3:58 PM GMT+2 3 min read ORCL ORCL-PD Janus Henderson Investors, an investment management company, released its “Forty Fund” first-quarter 2026 investor letter.  A copy of the letter can be downloaded here . Fund returned -12.

25% in the quarter, underperforming the Russell 1000 Growth Index (-9. 78%). Despite this, its 10-year annualized returns are approximately 15%.

The recent quarter's challenges stemmed from volatility and stock selection in the consumer discretionary sector. Initially, strong economic growth supported the market, but shifts occurred due to the Middle East conflict and inflation concerns. Artificial intelligence (AI) continued to be a strong investment theme, evidenced by rising share prices for AI supply chain companies.

The Fund maintains a positive view on the economic outlook despite current uncertainties. In addition, you can check the Fund’s top 5 holdings for its best picks for 2026. In its first-quarter 2026 investor letter, Janus Henderson Forty Fund highlighted Oracle Corporation (NYSE: ORCL ).

Oracle Corporation (NYSE:ORCL) is a leading global provider of products and services that enable enterprise information technology environments across multiple industries. On June 16, 2026, Oracle Corporation (NYSE:ORCL) closed at $188. 33 per share.

One-month return of Oracle Corporation (NYSE:ORCL) was -0. 31%, and its shares lost 11. 05% over the past 52 weeks.

Oracle Corporation (NYSE:ORCL) has a market capitalization of $541. 64 billion. Janus Henderson Forty Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q1 2026 investor letter: "Oracle Corporation (NYSE: ORCL ) was a relative detractor for the quarter.

While Oracle has continued to gain share in the hyperscale market, with a backlog of more than $500 billion, the stock declined in the first quarter on market concerns over the company’s ability to fund its ambitious infrastructure buildout. Concerns about potential disruption in Oracle’s legacy software businesses also pressured the stock. We believe these concerns are overstated, as Oracle has multiple avenues for funding growth due to its solid balance sheet and strong operating cash flow.

Additionally, we believe its software business is relatively insulated from AI competition given its focus on mission-critical systems that require precision and confidentiality. We remain invested in the stock. " Oracle’s (ORCL) Strategic Innovation Boosts its Dividend Appeal Oracle Corporation (NYSE:ORCL) ranks 40 on our list of  40 Most Popular Stocks Among Hedge Funds Heading Into 2026 .

According to our database, 115 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the first quarter, up from 111 in the previous quarter. While we acknowledge the potential of Oracle Corporation (NYSE:ORCL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .

Story Continues In  another article , we covered Oracle Corporation (NYSE:ORCL) and shared Columbia Global Technology Growth Fund's views on the company. In addition, please check out our hedge fund investor letters Q1 2026  page for more investor letters from hedge funds and other leading investors. READ NEXT:  33 Stocks That Should Double in 3 Years  and  15 Stocks That Will Make You Rich in 10 Years .

Disclosure: None. This article is originally published at Insider Monkey .