Oracle Price Target Raised To $268 As Analysts React To New Cloud Revenue

Oracle's stock (NYSE: ORCL) is riding a wave of bullish sentiment, adding 31% in the past month alone, as its burgeoning cloud business has seen analysts rush in.

While Oracle's share price has gained 60% over the past year, hitting an all-time high of $237.99 in Thursday's shortened trading session, analysts remain divided on the sustainability and profitability of its cloud-driven growth.

The catalyst for much of this recent activity is the announcement of a multi-year cloud services agreement projected to generate over $30 billion in annual revenue starting in fiscal year 2028.

This massive contract, nearly triple the $10.3 billion revenue generated by Oracle's data center division in fiscal year 2025, has ignited speculation about the identity of the client, with rumors swirling around potential partnerships with OpenAI and SoftBank's ambitious $500 billion Stargate project.

Oracle's commitment to investing $7 billion in Stargate and a planned $40 billion investment in Nvidia chips for new data centers in Abilene, Texas, further underscores its aggressive push into cloud infrastructure and AI.

Bernstein, a prominent investment firm, has weighed in on the debate, raising its price target on Oracle to $268 from $225 while maintaining an “Outperform” rating. This vote of confidence reflects the firm's belief that Oracle is on the right track, but it also acknowledges the inherent controversy surrounding the stock.

Bernstein analysts point out that while Oracle's management has provided some insight into revenue streams, questions persist about the intricacies of the company's diverse business operations.

This upside revision comes hot on the heels of TD Cowen's street high raise on Thursday, pushing ORCL out to $275 from $250.

The $30 billion contract is undoubtedly a game-changer, but its impact on Oracle's bottom line remains to be seen. While the deal could propel Oracle into the upper echelon of cloud providers, it also raises concerns about margin pressure and the long-term implications for the company's business mix. The lack of transparency surrounding the contract details has only added to the debate.