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Cloud infrastructure and IT solutions provider Oracle (ORCL) has been one of the top performers in the technology sector over the past few months, with its stock price surging by nearly 55% in the last three months. The solid momentum in its business indicates that the rally will continue in the foreseeable future.
Closing out its fiscal 2025 on a high note, Oracle delivered robust fourth-quarter results, marked by double-digit revenue growth. Management remains upbeat and expects the revenue growth rate to accelerate in fiscal 2026, setting the stage for further upside in ORCL stock.
The company’s total revenue surged, driven by significant increases in cloud services and license support. Cloud infrastructure services, in particular, saw exceptional demand, with contracted noncancelable bookings suggesting a projected revenue growth of over 70% in FY26 for Oracle Cloud Infrastructure (OCI).
Oracle’s focus on cloud applications, including ERP, financials, and supply chain management, positions it as a leader in enterprise solutions. The incorporation of over 100 AI agents enhances their suite of offerings, promising accelerated growth in cloud applications in the upcoming year.
Moreover, Oracle’s Autonomous Database and AI data platform are meeting the evolving needs of AI-driven enterprises. Further, the flexibility to run databases across multiple cloud environments strengthens its appeal to a diverse customer base.
Cloud Revenues to Push ORCL Stock Higher
Looking ahead, Oracle anticipates its revenue to exceed $67 billion for FY26, reflecting a robust 16% year-over-year increase. With a substantial $138 billion in remaining performance obligations (RPO) and a growing cloud backlog, Oracle remains poised for sustained growth and leadership in the enterprise cloud solutions market.
Given this positive backdrop, the highest price target for Oracle stock is $250, representing about 14% upside potential from current levels. However, given the solid momentum in its business, Oracle stock can rise even further.
For instance, management has set big expectations for its cloud operations. Oracle anticipates its total cloud revenue (spanning both applications and infrastructure) will accelerate from 24% growth in fiscal 2025 to over 40% in 2026. Notably, its Cloud Infrastructure growth is projected to surge from 50% to more than 70%. Meanwhile, the company expects its remaining performance obligations to more than double in the same period, signaling robust demand for its services.
CEO Safra Catz highlighted in a recent filing that Oracle is off to a strong start in FY26. The company’s MultiCloud database business is growing at over 100%, indicating that demand for flexible, scalable cloud solutions is rising rapidly. Oracle has also secured several significant cloud service contracts, one of which is expected to generate more than $30 billion annually starting in fiscal 2028.
Oracle’s MultiCloud offering enables customers to integrate Oracle’s cloud products with services from major competitors, such as Microsoft (MSFT) Azure, Amazon’s (AMZN) AWS, and Alphabet’s (GOOGL) Google Cloud, providing enterprises with the flexibility to optimize cost, performance, and functionality. Revenue from MultiCloud database services delivered via these platforms surged 115% from Q3 to Q4. Oracle currently operates 23 multi-cloud data centers, with another 47 under construction over the next 12 months. Triple-digit revenue growth in this segment is expected to continue into FY26.
The company’s Cloud@Customer offering, which brings Oracle’s cloud infrastructure directly to a customer’s data center, is also gaining traction, with revenue up 104% year-over-year. Oracle operates 29 dedicated Cloud@Customer datacenters, with plans to add 30 more in FY26. Meanwhile, consumption revenue from OCI grew 62% in the most recent quarter, with expectations of even faster growth ahead.
Will Oracle Stock Break Past $250 Soon?
Oracle shares have already seen a strong rise, and Wall Street’s highest price target of $250 points to even more potential gains. However, with solid earnings, a fast-growing cloud business, expanding AI capabilities, and a strong multi-cloud strategy, Oracle stock could climb even higher than the Street's high price target.
