TLDR
- Oracle stock has surged 74.3% over the past year, outperforming the Nasdaq’s 23.6% gain by a wide margin
- The company is investing tens of billions in large data centers, spending over $1 billion annually just to power one Texas facility
- Q4 revenues jumped 11% year-over-year to $15.9 billion, with cloud services revenue up 14% to $11.7 billion
- Oracle’s cloud infrastructure growth rate is expected to accelerate from 50% to over 70% in fiscal 2026
- Analysts maintain a “Moderate Buy” rating with a mean price target suggesting 4.8% upside potential
Oracle Corporation has delivered impressive returns for investors over the past year. The stock climbed 74.3% in the 52-week period, leaving the Nasdaq Composite’s 23.6% gain in the dust.
The Austin-based enterprise software giant currently trades at $240.40, sitting 7.9% below its 52-week high of $260.87 reached in July. Despite this pullback, Oracle has maintained strong momentum with a 46.7% rally over the past three months.
Year-to-date performance tells a similar story. Oracle shares have jumped 44.2% compared to the Nasdaq’s 12.4% advance. The stock has been trading above its 200-day moving average since late May and has stayed above its 50-day moving average since early May.
Oracle’s recent quarterly results helped fuel the stock’s ascent. The company reported Q4 revenues of $15.9 billion, an 11% increase from the previous year. This figure beat consensus estimates by 2.3%, giving investors fresh confidence in the company’s direction.
Cloud services and license support revenue grew 14.3% year-over-year during the quarter. Cloud license and on-premise license sales increased 9.2% from the same period last year. Adjusted earnings per share hit $1.70, up 4.3% from the prior year and exceeding analyst expectations by 3.7%.
Data Center Investment Push
Oracle is making massive investments in data center infrastructure to capture AI demand. Bloomberg reported in August that the company is spending tens of billions of dollars developing large data centers despite energy and material shortages.
The investment scale is staggering. Oracle plans to spend over $1 billion annually just to power one new facility in West Texas using gas generators rather than waiting for utility connections.
AI has become the primary driver of Oracle Cloud Infrastructure growth. The majority of Oracle’s contract backlog consists of deals tied to customers training or deploying AI models with GPU-based servers.
The company’s infrastructure ambitions extend well beyond a single facility. Oracle is building multiple megasites to meet surging demand from AI customers who need massive computing power for their operations.
Growth Acceleration Expected
Oracle’s management team has painted an optimistic picture for the coming years. The company expects its cloud infrastructure growth rate to jump from 50% in fiscal 2025 to more than 70% in fiscal 2026.
Remaining performance obligations, which represent booked deals, are projected to grow over 100% in fiscal 2026. This metric gives investors insight into future revenue potential from already-signed contracts.
The contracted backlog exceeded expectations with 41% growth in fiscal 2025. Management expects this figure to more than double in the current fiscal year, reflecting strong customer demand for Oracle’s cloud services.
Oracle recently disclosed that fiscal 2026 started strong with multiple new cloud contracts already signed. One contract alone is expected to generate more than $30 billion in annual revenue beginning in fiscal 2028.
Compared to rivals, Oracle has outpaced Microsoft’s stock performance. Microsoft gained 24.1% over the past 52 weeks and 20.9% year-to-date, trailing Oracle’s returns in both periods.
Wall Street analysts maintain cautious optimism about Oracle’s prospects. The stock carries a “Moderate Buy” consensus rating from 37 analysts covering the company. The mean price target of $251.97 implies 4.8% upside from current levels.
Oracle’s current market capitalization stands at approximately $675 billion, placing it firmly in mega-cap territory. The company continues trading above key technical levels that suggest institutional support remains intact.
The stock’s recent performance reflects investor confidence in Oracle’s ability to capitalize on the AI infrastructure buildout currently sweeping through the technology sector.
