Oracle Stock Surges 24% in Best Week Since 2001 on Cloud Growth

Oracle's stock experienced a remarkable surge, rising about 24% in one week—their best performance since 2001—driven by a strong earnings report and optimistic guidance for the future. The company's quarterly results showed an 11% year-over-year revenue increase to $15.9 billion and adjusted earnings per share of $1.70, topping expectations. Oracle's cloud business, particularly Oracle Cloud Infrastructure (OCI), saw significant growth, with OCI revenue jumping 52% year-over-year to $3 billion, highlighting the company's strategic focus on AI and multi-cloud solutions. CEO Safra Catz projected fiscal year 2026 revenue above $67 billion with capital expenditures expected to rise to $25 billion as Oracle expands its data center capacity to meet high demand, which Chairman Larry Ellison described as "astronomical." Analysts, including Joseph Bonner of Argus Research, have raised price targets on Oracle stock, citing the company’s robust backlog of contracts and its niche in the cloud infrastructure market despite fierce competition from Amazon, Microsoft, and Google. While the stock's recent momentum is impressive, investors should remain cautious of potential short-term profit-taking and market volatility.