Orcl stock began the first week of the trading day with a bang as it opened 8% higher on Monday after some strong indications from CEO Safra Catz.
At the time of publishing, Oracle shares were trading at $225.07, very close to their 52-week high of $228.17.
Many analysts have upgraded their outlook of the Orcl stock as they are paying close attention to Oracle’s swift buildout of its cloud and AI infrastructure, robust revenue growth, and the company’s disciplined management of operating costs.
Why Orcl stock is rising today?
The jump in Orcl stock price came after an SEC filing which indicated that CEO Catz is set to tell colleagues that Oracle’s MultiCloud database business is still growing at a rate of more than 100%.
She’ll also highlight several major cloud service deals the company has secured, including one projected to generate over $30 billion in annual revenue beginning in fiscal year 2028.
The development came as Oracle has been ramping up its cloud infrastructure efforts to better compete with tech giants like Amazon Web Services, Microsoft Azure, and Google Cloud.
Its MultiCloud database service has emerged as a major growth engine, driven by the growing adoption of hybrid and multi-cloud strategies among enterprise clients.
The growth of the company is also reflected in its earnings as Oracle’s latest quarterly results surpassed analyst forecasts, with overall revenue climbing 11% year-over-year and cloud revenue increasing by 14%.
This solid performance, along with the company’s rapid growth in data centers and AI infrastructure, has helped boost investor confidence even further.
Oracle has raised its revenue outlook for fiscal 2026 to more than $67 billion, anticipating a 16% year-over-year increase.
The company’s leadership expects total cloud revenue spanning both applications and infrastructure to grow from 24% in fiscal 2025 to over 40% in fiscal 2026.
They also project that remaining performance obligations (RPO) will more than double.
What analysts say?
Orcl stock continues to enjoy a positive outlook from analysts as Stifel Nicolaus upgraded Oracle’s rating from “Hold” to “Buy” and increased its price target from $180 to $250.
The firm pointed to Oracle’s sharp rise in capital spending and remaining performance obligations (RPO) as clear indicators of accelerating momentum in its Cloud Infrastructure and SaaS applications segments.
Westpark Capital boosted its price target on Oracle from $195 to $246 while maintaining its “Buy” rating.
Deutsche Bank also reaffirmed a “Buy” rating and raised its target to $240.
Meanwhile, both Oppenheimer and Guggenheim kept their “Outperform” or “Buy” ratings, with Guggenheim lifting its target to $250, highlighting Oracle’s emphasis on operating income growth and the anticipated acceleration in cloud revenue.
The year 2025 seems like just another great year for Oracle as the company’s share witnessed a continued uptrend over the past few years.
In 2024, Orcl stock saw a 59.99% annual gain while in 2023 the rate of growth remained 30.95%.
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