Record High Stock Price Following Strong Earnings
Oracle’s stock (ORCL) surged more than 13% on Thursday, hitting a record closing price of $199.87. The stock even reached an all-time high of $202.44 during intraday trading, following strong fiscal fourth-quarter results that surpassed Wall Street’s expectations.
Financial Results Exceed Expectations
Oracle’s adjusted revenue of $15.9 billion exceeded the projected $15.6 billion, and its earnings per share (EPS) of $1.70 surpassed the expected $1.64. The company raised its annual revenue forecast, citing strong demand for its AI cloud services. CEO Safra Ada Catz expressed optimism, stating that more customers will leverage Oracle’s database to harness the power of AI.
Annual Revenue Forecast Raised
Oracle now expects its fiscal year 2026 revenue to reach “at least $67 billion,” up from the prior guidance of $66 billion. This boost comes as Oracle looks to capitalize on the growing demand for AI-powered solutions.
Oracle Seen as a Safe AI Investment Amid Trade Tensions
Dan Morgan, Vice President at Synovus, told Yahoo Finance that Oracle is seen as a safer AI stock compared to its peers, particularly amid President Trump’s trade war. Morgan highlighted that Oracle is less reliant on manufacturing in China and the Pacific Rim, positioning it better for long-term growth.
Analyst Reactions and Price Target Increases
Following Oracle’s results, analysts at major investment firms including JPMorgan, Jefferies, UBS, and Deutsche Bank raised their price targets for Oracle’s stock. Price targets now reach as high as $240. Analysts praised Oracle’s achievements in the AI sector while acknowledging its current valuation. JPMorgan’s Mark Murphy maintained a Neutral rating and raised the price target to $185 from $135.
Investment in AI and Cloud Infrastructure
Oracle is set to invest $7 billion in the Stargate AI project, although the project has reportedly faced obstacles due to trade tensions. The company’s fiscal 2026 capital expenditure forecast of $25 billion exceeds Wall Street’s estimate of $20 billion, signaling significant investments in its cloud infrastructure. Oracle plans to build and operate more cloud data centers than all of its competitors combined, according to Chairman Larry Ellison.
Stock Performance and Future Outlook
Despite missed expectations in the prior two quarters, Oracle’s strong results and ambitious plans for AI and cloud growth have revived investor confidence. With increased capital expenditures and a promising AI strategy, Oracle’s future looks promising, though analysts note that the company’s upward capex revision may limit its free cash flow.
