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Oracle (ORCL) has captivated market attention in recent years. The explosion of artificial intelligence (AI) has turned into a major tailwind for the company, so much so that analysts now see Oracle as a serious candidate for entry into the coveted $1 trillion club.
The company wields some of the globe’s most robust and cost-effective data center infrastructure tailored for AI workloads. Demand is outstripping supply by a significant margin, prompting Oracle to earmark over $25 billion for new data center construction in fiscal year 2026.
Larry Ellison, Oracle’s Chairman and CTO, envisions surpassing all competitors combined in data center presence. His ambitious projection places Oracle on track to scale between 1,000 and 2,000 locations over the long haul, marking a tenfold increase from its current footprint.
In addition, CEO Safra Katz emphasizes Oracle’s trajectory towards becoming not only the foremost cloud application company globally, but also one of the largest cloud infrastructure providers. This trajectory could very well push Oracle toward the $1 trillion mark analysts now anticipate.
About Oracle Stock
Oracle (ORCL), based in Austin, Texas, has carved out a commanding position in the enterprise software world. With a market cap of $590 billion, it is a key player offering cloud solutions that help design, build and manage complex deployment models across industries.
Over the past 52-weeks, ORCL stock has surged by 45.8%, and within just three months, it has jumped 41%, leaving investors with more than a little to smile about.
Despite trading at 39.4 times forward earnings and 10.1 times sales, figures that certainly tower above sector averages, the valuation might not be out of line. The reason lies in Oracle’s expanding growth trajectory.
Oracle Surpasses Q4 Earnings
On June 11, Oracle reported its fiscal 2025 fourth-quarter earnings that outpaced Wall Street forecasts. The day after the results, ORCL stock surged more than 13% to close at a then-record high of $199.86, leading gains across the S&P 500 Index ($SPX).
The company posted $15.9 billion in revenue for the quarter, marking an 11% increase year over year and beating analyst expectations of $15.5 billion. Cloud Services and License Support revenue climbed 14%, while Cloud Licenses and On-premise Licenses rose 9%.
What stood out was Oracle’s RPO in Q4, which soared 41% to an all-time high of $138 billion. Management signaled that RPO could more than double in fiscal 2026. The company closed the quarter with non-GAAP net income rising 5.9% from the prior year to $4.9 billion.
Non-GAAP EPS climbed 4.3% from the year-ago level to $1.70, beating Wall Street’s forecast of $1.64. Oracle ended the quarter with $11.2 billion in cash and marketable securities.
The company issued robust guidance, forecasting revenue and earnings growth to be “dramatically higher” in fiscal 2026. That translates to an estimated $67 billion in net revenue, reflecting a nearly 16% year-over-year increase. The acceleration is expected to be driven by Oracle’s expanding global footprint and growing capacity utilization.
Analysts echo this optimism, projecting fiscal year 2026 EPS to rise 20.2% year over year to $5.29. Looking ahead to fiscal year 2027, the bottom line is forecasted to grow another 14% from the prior year to reach $6.03.
What Do Analysts Expect for Oracle Stock?
Following Oracle’s latest quarterly results, Wall Street analysts appear to be reading from the same bullish script. Bank of America took a measured stance by maintaining a neutral rating, but that did not stop it from hiking its price target on ORCL stock from $156 to $220.
Meanwhile, KeyBanc could not hide its optimism. Calling the growth projections “stunning,” it lifted its target to $225 from $200. Deutsche Bank went one step further, pushing the bar to $240 from $200, framing Oracle’s earnings as a “watershed cloud moment.”
Consensus on the Street leans heavily positive, assigning ORCL an overall rating of “Moderate Buy.” Of the 35 analysts tracking ORCL, 21 are firmly in the “Strong Buy” camp, one favors a “Moderate Buy,” while 13 recommend to “Hold” the stock.
The average price target of $214.41 represents potential upside of 2%, while the Street-high target of $246 suggests that the stock can climb as much as 17% from the current price level.
