Oracle Corporation (ORCL) surged to new heights on Monday, reaching an all-time stock high after CEO Safra Catz delivered an unexpectedly bullish update on the company’s fiscal year 2026 outlook.
The software giant’s leap reflects its growing dominance in cloud computing and artificial intelligence infrastructure — areas where it was once seen as a laggard. With Catz projecting multi-billion-dollar contracts and renewed investor confidence, Oracle is proving it's no longer chasing the AI wave — it’s riding it.
Bullish Signals from the Top
Oracle’s latest surge stems from a regulatory filing in which CEO Safra Catz outlined an exceptional start to fiscal year 2026. She revealed that Oracle’s MultiCloud database revenue is growing at over 100% and that the company has signed several large cloud services agreements. The standout among them: a single agreement projected to generate more than $30 billion annually beginning in fiscal 2028.
These figures come just weeks after Oracle’s fiscal Q4 report, which showcased its strongest earnings beat in two years and its first quarter of double-digit revenue growth since 2022. That momentum appears not only intact but accelerating. Oracle’s booked cloud deals are already overwhelming its available capacity, forcing the company to stagger client onboarding — a situation described as unprecedented in Oracle’s history.
Cloud Deals Worth Billions
The centerpiece of Oracle’s optimism is its $30 billion-plus cloud services deal, one that underscores the firm’s deepening entrenchment in enterprise-scale AI infrastructure. Oracle has emerged as a preferred partner for leading large-language model (LLM) developers, supporting four of the five biggest names in the space.
Oracle’s rapid cloud expansion is also drawing analyst support. On Sunday, Stifel upgraded Oracle’s stock to “Buy,” raising the price target from $180 to $250. The firm cited Oracle’s sustainable cloud growth and disciplined operating expenses, suggesting the company is positioned for accelerating earnings through fiscal 2027 and beyond.
The market reaction was swift. Oracle shares rose over 5% to more than $222, extending a rally that has already seen the stock climb 35% in 2025. The surge follows a brutal start to the year, when shares fell over 25% through mid-April. Since then, Oracle’s strong results and upbeat guidance have restored investor enthusiasm.
From Doubt to Dominance: Oracle’s Transformation
Just a few years ago, Oracle was dismissed as an also-ran in the cloud race, overshadowed by Amazon Web Services (AMZN), Microsoft Azure (MSFT), and Google Cloud (GOOG). Today, the narrative has shifted. Oracle’s cloud infrastructure business is not only growing fast — it’s also emerging as a strategic lynchpin for AI development and deployment.
The company’s role in the ambitious Stargate Project, a joint AI infrastructure effort with OpenAI, SoftBank, and MGX, could be transformative. If the project scales as expected, Oracle’s future revenue projections may prove conservative. Already, Oracle’s backlog of booked cloud contracts (RPO) stood at $138 billion in Q4, up 41% from the prior year. While this growth decelerated from the prior quarter’s breakneck pace, it remains a robust indicator of long-term demand.
Catz’s latest commentary suggests that Oracle now has visibility into revenue growth through at least 2029 — a rare level of foresight for a company of its size. Internally, Oracle expects to exceed previously set revenue targets for FY27 and is increasingly confident about hitting — and possibly surpassing — those for FY29.
Conclusion
Oracle’s transformation from enterprise software stalwart to cloud infrastructure powerhouse is gaining full recognition on Wall Street. With a booming cloud business, multi-billion-dollar deals on the books, and a CEO publicly signaling even stronger growth ahead, Oracle appears to be entering a new phase of expansion. As demand for AI-driven services accelerates, the company’s ability to scale its infrastructure, maintain disciplined spending, and secure marquee customers may define its path forward — and continue to reward investors betting on its cloud comeback.
Catz’s latest commentary suggests that Oracle now has visibility into revenue growth through at least 2029 — a rare level of foresight for a company of its size. Internally, Oracle expects to exceed previously set revenue targets for FY27 and is increasingly confident about hitting — and possibly surpassing — those for FY29.
Conclusion
Oracle’s transformation from enterprise software stalwart to cloud infrastructure powerhouse is gaining full recognition on Wall Street. With a booming cloud business, multi-billion-dollar deals on the books, and a CEO publicly signaling even stronger growth ahead, Oracle appears to be entering a new phase of expansion. As demand for AI-driven services accelerates, the company’s ability to scale its infrastructure, maintain disciplined spending, and secure marquee customers may define its path forward — and continue to reward investors betting on its cloud comeback.
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