A global leader in enterprise software and cloud computing solutions, Oracle shares jumped nearly 8% in premarket trading on Thursday after the company raised its full-year revenue outlook, citing strong demand for its AI-driven cloud services. The stock is up nearly 6% year-to-date, reflecting continued investor confidence in the software sector despite global tensions. However, some analysts caution that U.S. President Donald Trump’s tariffs could pose a threat to Big Tech’s AI-related investments.
Earlier this year, Oracle whose cloud services support companies in developing their AI infrastructure launched a joint venture called Stargate to provide large-scale computing power to OpenAI.
“Oracle’s formerly conservative image has transformed into that of a ‘cloud-native mage,’” said Michael Ashley Schulman, partner at Running Point Capital Advisors. “The competitive landscape now resembles less a traditional three-player real-time strategy game and more a battle royale, with everyone jumping in and scrambling for computing resources.”
A global leader in enterprise software and cloud computing solutions, Oracle shares jumped nearly 8% in premarket trading on Thursday after the company raised its full-year revenue outlook, citing strong demand for its AI-driven cloud services. The stock is up nearly 6% year-to-date, reflecting continued investor confidence in the software sector despite global tensions. However, some analysts caution that U.S. President Donald Trump’s tariffs could pose a threat to Big Tech’s AI-related investments.
Earlier this year, Oracle whose cloud services support companies in developing their AI infrastructure launched a joint venture called Stargate to provide large-scale computing power to OpenAI.
“Oracle’s formerly conservative image has transformed into that of a ‘cloud-native mage,’” said Michael Ashley Schulman, partner at Running Point Capital Advisors. “The competitive landscape now resembles less a traditional three-player real-time strategy game and more a battle royale, with everyone jumping in and scrambling for computing resources.”
Oracle expects total revenue to be at least $67 billion for fiscal 2026, CEO Safra Catz said on a post-earnings call.
The Texas-based company’s cloud services quarterly revenue rose 14% to $11.70 billion. Its overall revenue of $15.90 billion beat estimates of $15.59 billion. At least nine brokerages have raised their price target post-earnings.
Oracle trades at a forward price-to-earnings ratio of 25.86, compared to rivals Microsoft at 31.34 and Amazon at 31.80, according to data compiled by LSEG.
Microsoft’s (MSFT.O), opens new tab stock has gained 12.16%, while Amazon’s (AMZN.O), opens new tab has decreased by 2.8% so far this year.
“ORCL has entered an entirely new wave of enterprise popularity that it has not seen since the Internet era in the late 90s,” analysts at Piper Sandler added.
Oracle shares soar as AI cloud demand propels revenue forecast
Oracle expects total revenue to be at least $67 billion for fiscal 2026, CEO Safra Catz said on a post-earnings call.
The Texas-based company’s cloud services quarterly revenue rose 14% to $11.70 billion. Its overall revenue of $15.90 billion beat estimates of $15.59 billion. At least nine brokerages have raised their price target post-earnings.
Oracle trades at a forward price-to-earnings ratio of 25.86, compared to rivals Microsoft at 31.34 and Amazon at 31.80, according to data compiled by LSEG.
Microsoft’s (MSFT.O), opens new tab stock has gained 12.16%, while Amazon’s (AMZN.O), opens new tab has decreased by 2.8% so far this year.
“ORCL has entered an entirely new wave of enterprise popularity that it has not seen since the Internet era in the late 90s,” analysts at Piper Sandler added.
Oracle shares soar as AI cloud demand propels revenue forecast