A $30 Billion Reason to Buy Oracle Stock Now

Oracle (ORCL) is large tech company that provides database software, integrated cloud services, and more. 

Oracle’s stock is on an upward run right now, gaining 40% in just the last month. The company has gained 42% in the year to date, easily outpacing the benchmark S&P 500 Index’s ($SPX) 6.6% gain in the same period. Over a longer period, ORCL is up 103% in 2 years and more than 215% in 3 years.

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Oracle Tops Results

Oracle posted its fourth quarter earnings for fiscal 2025 on June 11, revealing net income of $3.4 billion. Earnings came to $1.70 per adjusted share against analysts’ estimated $1.64. Revenue was up 11% year-over-year to $15.9 billion, also beating estimates for $15.54 billion.

Cloud revenue grew 27% to $6.7 billion during the quarter while its remaining performance obligation (RPO) boomed 41% to $138 billion. 

The company has released robust guidance with revenue of at least $66 billion expected for its fiscal 2026.

For the fiscal first quarter, analysts expect earnings per share of $1.15, down slightly from $1.18 in the year-ago period. For the full year, they call for a 20.5% increase in earnings to $5.30. 

Oracle’s $30 Billion Catalyst

Oracle’s shares surged 4% on Monday, June 30 following the company’s announcement of a deal worth over $30 billion in revenue annually. The company’s filing with the U.S. Securities and Exchange Commission showed a new cloud deal that would add over $30 billion in revenue annually starting from fiscal 2028.

CEO Safra Catz says that the company is off to a “strong start in FY26,” while pointing toward the multiple cloud services deals signed recently. 

Additionally, the company has been busy with several other artificial intelligence initiatives, such as Stargate, which it is collaborating on with OpenAI and SoftBank (SFTBY). It is also pursuing expansion in the United Arab Emirates and has announced a recent expanded partnership with International Business Machines (IBM) on agentic AI. 

Should You Buy Oracle Stock?

Oracle has a consensus “Moderate Buy” rating, reflecting positive sentiment. However, its mean price target of $219.78 is lower than its current price, implying some downside risk. 

The stock has been reviewed by 35 analysts, receiving 22 “Strong Buy” ratings, one “Moderate Buy” rating, and 12 “Hold” ratings.

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On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.