Oracle Stock Hits New Heights on Cloud Deals
Oracle’s market value has soared in 2025, with shares nearly doubling on optimism tied to a $300 billion cloud pact with OpenAI. Q1 FY26 revenue of $14.9 billion and EPS of $1.47 fell short, but projections of $18 billion in cloud infrastructure this year and $144 billion by 2030 buoyed sentiment.
CEO Safra Catz highlighted a record $455 billion RPO backlog, rising 359% from last year, with major customers like OpenAI, Meta, and xAI. Oracle is positioning itself with database-driven inference and AI agents targeting real-world applications.
Risks include high spending — $35 billion planned for FY26 capex — along with competition from industry giants and economic slowdown concerns.
Most analysts are bullish, labeling the trend a “seismic shift,” but TipRanks shows a price target of $263.93, significantly below current trading levels.
