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The dominance of traditional hardware is giving way to a new era defined by software-driven innovation and cloud-based infrastructure. With artificial Intelligence (AI)-infused cloud platforms leading this charge, the spotlight’s now firmly on firms built for scale, speed, and smarts. Among them, Oracle (ORCL) has quietly morphed from a legacy database provider to a heavyweight in cloud infrastructure and enterprise AI.
The tech giant is once again receiving attention after it reported a robust Q4 report - a growth story that’s caught Wall Street’s attention. Guggenheim analyst John DiFucci raised his price target on ORCL stock from $220 to $250, and believes that the company is on the verge of a “narrative shift” after decades of technological innovation, while expecting a bigger jump in its top and bottom line.
So now, with the stars aligning and Wall Street tuning in, could Oracle be quietly charting its course toward the $250 mark?
About Oracle Stock
Austin-based Oracle (ORCL) has grown into a tech powerhouse with a market cap of $604.7 billion. Best known for its Oracle Database and autonomous systems, Oracle delivers a broad spectrum of cloud solutions - from ERP and HCM to NetSuite. Its reach spans industries, governments, and education, backed by hardware and consulting arms. With relentless innovation, Oracle remains a cornerstone in shaping the cloud-first, data-driven future of global enterprise technology.
With strong earnings and booming cloud momentum, ORCL stock has soared 51.4% over the past 52 weeks, trouncing the S&P 500 Index’s ($SPX) 11.4% gains over the same period. Shares touched a new record high of $216.93 on Wednesday, June 25.
However, Oracle’s stock doesn’t come cheap. It is priced at 39.2 times its forward earnings, which is significantly stretched compared to the industry average at the moment.
Oracle’s Latest Quarterly Results Surpassed Estimates
On June 11, Oracle posted robust results for the fourth quarter of fiscal 2025 (quarter ended May 31, 2025). The company’s total revenues increased by 11% year over year to $15.9 billion, surpassing the $15.6 billion consensus Wall Street estimate. Oracle’s top-line growth is seen in its profitability expansion. Its non-GAAP EPS rose by 4% annually to $1.70, which was also higher than the estimates.
At the heart of this growth were Oracle’s cloud-related operations. Its cloud services and license support segment revenue grew by 14% annually to $11.7 billion, accounting for 74% of its total top line. Plus, its cloud license and on-premise license revenue increased by 9% to just over $2 billion.
The growth in AI has also been noticeable in Oracle’s operations. The company reported that AI innovators are picking the Oracle Cloud Infrastructure (OCI) AI infrastructure and OCI Supercluster to train AI models and deploy AI applications. With the company’s AI infrastructure, AI innovators can use high-performance GPU clusters and scalable computing power, which makes OCI so popular.
Oracle also partnered with Advanced Micro Devices (AMD) to integrate AMD Instinct MI355X GPUs into OCI. This partnership is said to offer more than twice the price performance of the previous generation, as the companies realize efficiency gains.
While Oracle’s results have been robust in themselves, what has gotten investors excited is the prospects the company is showing. The company aims to scale its data center operations aggressively. Oracle currently has 23 multicloud data centers and plans to build 47 more by the end of fiscal 2026. As a result of this, Oracle plans to take up significant cloud infrastructure.
Oracle expects the total cloud-growth rate to increase from 24% in fiscal 2025 to more than 40% in this fiscal year. The company’s Chairman, Larry Ellison, also made the bold claim that it would be the “largest and most profitable cloud applications company in the world.” Plus, management expects its operations to stay steeped in demand. The company’s cloud infrastructure growth rate is expected to increase to over 70% in 2026, while its remaining performance obligations (RPO) are projected to grow more than 100%.
Analysts expect the tech stock’s fiscal 2026 EPS to grow by 20.2% to $5.29, followed by an increase of 14% to $6.03 in fiscal 2027.
What Do Analysts Expect for Oracle Stock?
After a full-day deep dive with Oracle’s IR chief Ken Bond, Guggenheim’s John DiFucci didn’t just walk away impressed - he walked away convinced. He gave a “Buy” rating and lifted his target price to $250 – the Street-high. He sees Oracle on the brink of a major narrative shift, powered by decades of innovation. With revenue poised to surge in fiscal 2026 and fiscal 2027, and fiscal 2029’s $104 billion target likely understated, DiFucci cements Oracle as a “Best Idea.”
Overall, analysts have a positive outlook on ORCL, giving a consensus “Moderate Buy” rating. Of the 35 analysts rating the stock, a majority of 21 analysts have rated it a “Strong Buy,” one suggests a “Moderate Buy,” and 13 analysts are playing it safe with a “Hold” rating. Meanwhile, the consensus price target of $215.34 represents 3% potential upside.
