Oracle stocks are experiencing another comeback lately, as the US-based computer software company has seen an influx of cloud service-related developments, including a $30 billion (£21.88 billion) annual deal starting in 2028.
What's In Oracle's Latest Deal?
Oracle Corp has entered into a cloud services agreement projected to generate over $30 billion (£21.88 billion) in yearly revenue. The company disclosed the deal in a regulatory filing on Monday but did not identify the customer.
'Oracle is off to a strong start in FY26. 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 FY28,' Oracle CEO Safra Catz said.
It is worth noting that Oracle has made significant inroads in the competitive cloud computing services market, partly by catering to clients involved in artificial intelligence projects.
Earlier this year, the company unveiled a joint initiative called Stargate, aimed at supplying OpenAI with substantial computing resources. Oracle had previously noted that this agreement had not yet been included in its financial results or reported backlog.
Oracle Stocks Skyrocket
Oracle shares have rallied strongly this June, climbing over 35% year‑to‑date and recently surging 5–6%. Analysts have responded, with Stifel Nicolaus upgrading its rating to Buy, raising its price target from $180 (£131.29) to $250 (£182.35).
Meanwhile, Deutsche Bank (Buy, $240 or £175.06), Westpark Capital (Buy, $246 or £179.43), and Barclays (Overweight, $221 or £161.20) have also increased their targets recently. Overall, the stock holds a "Moderate Buy" consensus, with average price targets ranging from $200 to $215 (£145.88-£156.82). The upbeat analyst sentiment reflects optimism around Oracle's accelerating cloud and AI momentum.
Bold Target Moving Forward
In recent months, Oracle co-founder and CTO Larry Ellison has set bold targets to lead in three cloud domains: databases, applications, and data centre operations. He emphasised Oracle's strategy of leveraging its dominant database presence, enabling multi-cloud flexibility across OCI, AWS, Azure, and GCP, which is fueling a staggering 115% quarter-over-quarter growth in database revenue.
Moreover, the new AI-optimised Oracle 23ai ensures full data accessibility for leading AI models while also providing privacy protection. Oracle's cloud apps, though trailing larger rivals, are gaining momentum via AI agents and partnerships (OpenAI, X.ai, Meta). Meanwhile, its rapid mini-data centre expansion aims to outbuild its competitors.
With expanding multi-cloud capabilities, a revamped financial team, and growing analyst confidence, Oracle is positioning itself as a serious contender in the next era of enterprise computing. As Ellison's vision unfolds and multi-billion-dollar contracts come online, the coming years could redefine Oracle's place in the tech landscape.
