Oracle stock jumped Monday after its chief executive touted the tech giant's recent success in landing cloud services agreements, including one that will reach more than $30 billion in revenue by 2028. Separately, a Wall Street analyst boosted his view on Oracle to a buy call.
Oracle Chief Executive Safra Catz said in a regulatory filing early Monday that the company is off to a "strong start" for its May-ending fiscal 2026.
"Our MultiCloud database revenue continues to grow at over 100%, and we signed multiple large cloud services agreements including one that is expected to contribute more than $30 billion in annual revenue starting in fiscal year 2028," Catz said in the statement. The filing came in advance of a meeting between Catz and "Oracle colleagues," according to the notice.
On the stock market today, Oracle stock gained 4% to close at 218.63.
Oracle stock gained 32% overall in June, vaulting the enterprise tech stock beyond record highs last seen in December. Shares were boosted by a strong fiscal Q4 earnings report.
Catz said with the June 11 report that Oracle expects revenue growth will be "dramatically higher" for the current fiscal year. She touted the company's momentum in winning large cloud contracts, including from AI startups. Her commentary Monday helps back that bullish outlook.
Oracle Stock Upgraded By Stifel
Meanwhile, Stifel analyst Brad Reback upgraded his call on Oracle stock to buy from hold in a client note late Sunday. He set a price target of 250, up from 180.
Stifel was a holdout as Oracle won over a majority of its Wall Street analysts over the past 18 months. Reback previously raised concerns about the costs for Oracle to keep up with its growing AI and cloud demand. He titled his note Sunday "Uncle...Upgrading To Buy As Cloud Acceleration Appears Sustainable."
The "dramatic step-up" in capital expenditures and growth for Oracle's cloud work backlog supports Oracle's growth expectations, Reback wrote. The company's growing capex costs may weigh on margins in the "near-term," he said, adding that Oracle's management has shown it can manage those expenses.
"We believe the combination of sustainable cloud growth and opex (operating expense) discipline should enable Oracle to overcome the revenue mix shift headwinds and post accelerating EPS growth in FY27 and beyond," Reback wrote.
Oracle's Big Rally
After a long and occasionally bumpy process of reorienting its nearly 50-year-old database business to the cloud, Oracle's cloud infrastructure business has emerged as a fast-growing alternative to industry giants Amazon, Microsoft and Google parent Alphabet. Momentum for Oracle's cloud offerings helped carry the stock to a 60% gain last year. That marked Oracle stock's best performance since 1999.
With Monday's jump, Oracle stock is up more than 31% in 2025. Shares have rallied back after a rough start to the year that saw Oracle stock tumble more than 25% from the start of the year to a mid-April low point.
Oracle stock broke out on June 12 from a long consolidation pattern with a buy point at 198.31. The stock is extended past a 5% buy zone above that level, according to IBD MarketSurge.
