Oracle Shares Soar 23% on Record Cloud Earnings, AI Demand

Oracle's shares surged more than 23% this week, marking the company's best weekly performance since 2001, driven by strong fiscal fourth-quarter earnings and an optimistic outlook for fiscal 2026. The stock hit a new all-time high of $216.59, fueled by a significant increase in cloud services revenue and a projected fiscal 2026 revenue exceeding $67 billion, surpassing Wall Street estimates. Oracle's transformation into a cloud infrastructure leader, particularly in artificial intelligence (AI) computing power, has attracted investor enthusiasm, with a notable partnership with OpenAI enhancing its AI capabilities. Analysts from firms such as UBS and Cantor Fitzgerald raised their price targets in response to Oracle's extraordinary backlog growth, which doubled to over $275 billion, and the company’s planned $25 billion capital expenditure to meet AI infrastructure demand. Despite some valuation models suggesting potential downside, the overall market sentiment remains bullish, reflecting confidence in Oracle's strategic shift and sustained growth in cloud and AI sectors. The stock's strong performance is also reflected in its multi-year uptrend, with nearly 290% gains over five years, underscoring its emergence as a compelling tech growth story.