Oracle Corporation’s stock soared to an all-time high this week after the tech giant posted robust quarterly earnings and outlined an aggressive growth trajectory for its cloud and AI businesses.
The rally was further fueled by a bullish upgrade from BMO Capital Markets, which now projects double-digit income growth for Oracle despite the company’s plans for increased capital spending.
Oracle shares jumped as much as 14% on Thursday, closing just under $202 and cementing the company as the top gainer on the S&P 500 for the day. The surge followed the release of Oracle’s fiscal fourth-quarter results, which exceeded Wall Street expectations.
Revenue climbed 11% year-over-year to $15.9 billion, while adjusted earnings per share reached $1.70, both surpassing analyst forecasts. The company’s cloud infrastructure segment was particularly impressive, with revenue soaring 52% to $3 billion for the quarter. Oracle executives forecast that cloud infrastructure growth could exceed 70% in fiscal 2026, reflecting surging demand for AI-driven solutions and large-scale computing.
BMO Capital Markets responded to the strong performance by upgrading Oracle’s rating from “Market Perform” to “Outperform” and raising its price target from $200 to $235, implying nearly 18% upside from current levels. The upgrade is grounded in Oracle’s solid results, compelling forward guidance, and a remarkable $138 billion in remaining performance obligations—a key indicator of future revenue.
BMO analysts highlighted that if Oracle maintains its current trajectory, particularly in cloud and database services, the company is well-positioned for sustained operating income growth, even as it ramps up capital expenditures to meet soaring demand.
Looking ahead, Oracle’s management remains confident, projecting total revenue for fiscal 2026 to reach at least $67 billion—up from earlier estimates. The company’s strategic investments in AI and cloud infrastructure, including its high-profile partnership with OpenAI, are expected to drive continued momentum and reinforce its competitive position against industry heavyweights like Amazon, Microsoft, and Google.
Despite higher spending, analysts see Oracle’s earnings power accelerating, with consensus price targets trending higher across Wall Street. As investor appetite for AI and cloud exposure intensifies, Oracle’s stock price and outlook appear poised for further gains, underscoring its transformation into a dominant force in next-generation enterprise technology.
