Oracle Just Hit a New 52-Week High. Should You Buy ORCL Stock Here?

Oracle (ORCL) recently reached a new 52‑week high, driven by growing enthusiasm over its expanding cloud and artificial intelligence (AI) capabilities and positive analyst endorsements. The software giant has been steadily expanding its footprint in cloud computing, and its partnership with major AI players like Nvidia (NVDA) is helping fuel optimism about future growth. Oracle’s cloud business — especially its Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS) segments — is gaining momentum, positioning the firm as a credible alternative to established players.

So, is Oracle’s new high the start of a new breakout? Or is it a signal to pause and reassess, considering the stock's lofty valuation? 

More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.

 

About Oracle Stock

Best-known for pioneering relational database software and enterprise tools, Oracle has evolved into a powerhouse in cloud infrastructure, SaaS applications, hardware systems, and consulting services. Headquartered in Austin, Texas, the firm serves a global client base. With a market capitalization of $660 billion, the company ranks among the world’s top software and cloud computing firms. 

Oracle reached a 52‑week high of $241.44 on July 8, primarily due to a landmark cloud infrastructure deal and accelerating AI-driven growth. ORCL stock rallied after news broke that Oracle will supply approximately 4.5 gigawatts (GWs) of data-center capacity under the “Stargate” program, a contract projected to generate around $30 billion annually from fiscal 2028.

This deal, alongside strong fiscal fourth-quarter 2025 financials and a price target boost, has reinforced the bullish sentiment. ORCL stock has gained 45% on a year-to-date (YTD) basis. 

www.barchart.com

Oracle stock is priced at 43 times forward earnings — a significant premium over peers and its own historical average. At current levels, the stock leaves little room for error. Any delays in contract execution or margin pressure could spark a pullback. 

Oracle Smashes Q4 Forecasts

Oracle’s fiscal Q4 2025 results, reported on June 11, saw total revenue of $15.9 billion, topping expectations and marking 11% year-over-year (YOY) growth. Cloud services and license support revenue rose 14% to $11.7 billion, while cloud infrastructure (IaaS) revenue alone surged 52% to $3 billion. Meanwhile, SaaS revenue grew 12% to $3.7 billion. 

Non‑GAAP EPS rose to $1.70, up from $1.63 in the year-ago quarter and beating analyst forecasts. Remaining Performance Obligations climbed 41% to $138 billion, signaling strong future revenue visibility. Additionally, operating cash flow for the fiscal year grew 12% to $20.8 billion.

Looking ahead, Oracle issued strong guidance for fiscal 2026, with total cloud growth expected to exceed 40% and cloud infrastructure growth anticipated to be over 70%. CEO Safra Catz emphasized the company’s ambition to expand its cloud presence internationally, positioning Oracle as a top-tier cloud infrastructure provider. Total revenue is guided to be at least $67 billion, implying 16% YOY growth. 

Analysts remain optimistic, predicting EPS to climb 20% to $5.30 for fiscal 2026 before surging another 14% to $6.04 in fiscal 2027.

What Do Analysts Expect for Oracle Stock?

Oracle just gained a powerful new bullish boost from Jefferies, which raised its ORCL stock price target from $220 to $270. This optimism stems from Oracle’s recent string of cloud deals, which Jefferies describes as a “pivotal moment” in Oracle’s evolution.  

Investment firm BMO flagged concerns about rising capital expenditure and the likely need to raise new capital, hinting at potential financial pressures in fiscal 2026 and 2027. Nevertheless, BMO analyst Keith Bachman has an “Outperform” rating for the stock with a $245 price target. 

Oracle stock has a consensus “Moderate Buy” rating overall, which shows confidence tempered with caution. Among the 35 analysts covering the tech stock, 23 recommend a “Strong Buy,” one gives a “Moderate Buy" rating, and 11 analysts stay cautious with a “Hold” rating.

Oracle has already surpassed its average price target of $229.59. However, the Street-high target price of $275 suggests that shares could rally as much as 14%.

www.barchart.com

On the date of publication, Sristi Suman Jayaswal 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.