TLDR
- Oracle shares surged 24% this week, marking the best performance since 2001 following strong earnings and cloud growth
- Stock hit new all-time high of $216.59 on Friday before closing at $215.22, up 7.69%
- Multiple analysts raised price targets with UBS lifting to $225, citing extraordinary 100% backlog growth to $275 billion
- CEO Safra Catz guided fiscal 2026 revenue above $67 billion, beating consensus estimates of $65.18 billion
- Oracle’s capital expenditure will reach $25 billion in fiscal 2026 as demand for AI infrastructure outstrips supply
Oracle Corporation shares closed their best week in over two decades as investors celebrated the database giant’s transformation into a cloud infrastructure powerhouse. The stock rallied 24% this week after delivering earnings that exceeded expectations.
The company touched a new all-time high of $216.59 during Friday’s trading session. Oracle finished the day at $215.22, marking a 7.69% gain for the session.
This performance represents Oracle’s strongest week since April 2001. Back then, the company was navigating the dot-com crash. Today’s surge stems from very different circumstances.
Oracle has found its footing in the competitive cloud infrastructure market. The company is capitalizing on surging demand for artificial intelligence computing power.
CEO Safra Catz provided revenue guidance that caught Wall Street’s attention. She projected fiscal 2026 sales above $67 billion. This figure exceeded the consensus estimate of $65.18 billion.
Chairman Larry Ellison described the current market conditions during the earnings call. “The demand is astronomical,” he told analysts. “But we have to do this methodically.”
Analyst Upgrades Drive Momentum
Wall Street analysts responded with enthusiasm to Oracle’s results. UBS raised its price target to $225 from $200 while maintaining a buy rating.
The bank highlighted Oracle’s backlog growth as extraordinary. The company’s backlog surged 100% to over $275 billion for fiscal 2026.
Cantor Fitzgerald also boosted its target price. The firm lifted its target to $216 from $175 while keeping an overweight rating.
The upgrade came after Oracle projected 70% growth in Infrastructure as a Service. This exceeded analyst expectations of 60% growth.
DA Davidson took a more conservative approach. The firm raised its target to $170 from $140 but maintained a neutral rating.
Massive Infrastructure Investment
Oracle is spending heavily to meet demand for AI computing resources. Capital expenditures exceeded $21 billion in fiscal 2025.
This amount surpassed what Oracle spent from 2019 to 2024 combined. The company plans to increase spending to $25 billion in fiscal 2026.
Oracle’s clients now include major AI companies. Meta, OpenAI, and Elon Musk’s xAI all use Oracle’s cloud services.
These companies require massive amounts of Nvidia graphics processing units. They use these chips to train AI models that generate text, images, and videos.
Oracle also announced new partnerships this week. Startups Baseten, Physical Intelligence, and Vast Data joined as cloud clients.
Ellison made a bold prediction about Oracle’s infrastructure plans. “We will build and operate more cloud infrastructure data centers than all of our cloud infrastructure competitors combined,” he said.
Oracle’s spending still trails the tech giants. Google expects to spend $75 billion on capital expenditures this year. Microsoft targets $80 billion for its fiscal year.
Oracle shares have gained 29% in 2025. This outpaces the Nasdaq’s less than 1% gain for the year. The stock also leads performance among major tech companies, with Meta’s 17% gain ranking second.
Joseph Bonner at Argus Research upgraded his recommendation to buy. He raised his price target to $235 from $200, citing Oracle’s position of having more demand than it can fulfill.
