Oracle Stock Doubles on Cloud Optimism
Shares of Oracle have nearly doubled this year, propelled by a $300 billion, five-year deal with OpenAI. Despite Q1 FY26 results missing estimates at $14.9 billion in revenue and $1.47 EPS, Wall Street focused on management’s upbeat forecast: $18 billion in cloud infrastructure revenue this fiscal year, a 77% jump, and expansion to $144 billion by 2030.

CEO Safra Catz emphasized Oracle’s momentum with multibillion-dollar contracts and a massive $455 billion RPO backlog. Major AI players — OpenAI, Meta, and xAI — are among its new clients. Oracle’s advantage lies in inference services integrated with its databases, alongside AI agent initiatives for consumer services like travel.

Still, Oracle faces challenges: $35 billion in FY26 capex, entrenched competitors AWS, Google Cloud, and Azure, and economic risks if enterprise AI spending slows. Some analysts caution that AI adoption remains uneven, with ROI elusive for many firms.

Consensus analyst data from TipRanks sets a price target of $263.93, suggesting the stock may be overheated unless Oracle proves AI can drive durable productivity.