Oracle’s Stock (ORCL) Set’s New High – Large Cloud Deals Fuel Bullish Sentiment

Oracle (ORCL) is riding a wave of bullish sentiment, with blockbuster cloud deals and strategic investments in artificial intelligence supporting the move higher. The Oracle stock price has once again set new highs today, hitting $228,22 early, and currently trading 1.6% up on the day.

This momentum is not just a short-term blip; analysts, including those at Jefferies, are increasingly confident in Oracle's long-term growth trajectory, citing the company's expanding cloud business and its potential to exceed already ambitious targets.

Jefferies' recent research note underscores this optimism. The firm reiterated its “Buy” rating on Oracle, raising its price target to $220, a figure the stock has since surpassed. This bullish stance is directly linked to Oracle's announcement of multiple large cloud service contracts, most notably one poised to contribute over $30 billion in annual revenue starting in fiscal year 2028.

This single contract alone eclipses Oracle's entire fiscal 2025 cloud services revenue of $24.4 billion, signaling a paradigm shift in the company's cloud capabilities and market penetration.

The market's enthusiasm is further supported by Oracle's recent performance and future projections. The stock has been on a long-term uptrend since 2000, and the past year has seen significant growth of ~55%.

Oracle's strategic moves in the AI space are also contributing to its positive outlook. The company's partnership with OpenAI and SoftBank on Project Stargate, aimed at building AI-focused data centers, demonstrates its commitment to capturing a significant share of the rapidly growing AI market. Furthermore, Oracle's construction of what is touted as the world's largest AI data center underscores its ambition and positions it as a key player in providing the infrastructure needed to power the next generation of AI applications.

These investments are not just about future growth; they are already translating into tangible results. CEO Safra Catz recently highlighted the company's strong start to fiscal 2026, noting that Oracle's MultiCloud database revenue continues to grow at over 100%.

Jefferies anticipates Oracle's total cloud revenue to increase by more than 40% in fiscal 2026, with Infrastructure-as-a-Service (IaaS) growth projected to rise from 51% in fiscal 2025 to over 70% in fiscal 2026. The company's strong remaining performance obligations (RPO), which grew 41% year-over-year and are expected to more than double by fiscal 2026, further solidify the bullish outlook.