Oracle Stock Surges on AI Cloud Momentum
Oracle shares have nearly doubled in 2025, fueled by a record-setting $300 billion, five-year cloud deal with OpenAI. While Q1 FY26 earnings fell short at $14.9 billion in revenue and $1.47 EPS, investors looked past the miss to focus on the company’s bullish cloud guidance — forecasting $18 billion in FY26 infrastructure revenue, up 77%, with growth expected to reach $144 billion by FY30.
CEO Safra Catz pointed to multibillion-dollar agreements and a swelling backlog of $455 billion in RPO, a 359% increase. Oracle is winning marquee customers such as OpenAI, Meta, and xAI, leveraging its database-linked AI inference services and development of AI agents for tasks like travel booking.
The surge comes with risks: heavy $35 billion in FY26 capital spending, intensifying competition from AWS, Google Cloud, and Microsoft Azure, and macro concerns if AI budgets tighten. Analysts remain largely positive, calling the trend a “seismic shift,” though some warn growth could be inflated by rivals outsourcing workloads.
According to TipRanks, the consensus price target stands at $263.93 — about 25% below current levels — underscoring doubts about long-term sustainability. The stock’s future will depend on whether enterprise AI adoption translates into real productivity and revenue.
