Oracle (NYSE:ORCL) is making waves in artificial intelligence with the debut of its new Oracle AI Data Platform, unveiled at the company’s AI World event in Las Vegas. The announcement has stirred investor optimism and renewed focus on the Oracle stock forecast, as the tech giant positions itself for a leading role in the next era of cloud and AI infrastructure.
Oracle’s Strategic AI Push
Oracle’s new AI Data Platform integrates Oracle Cloud Infrastructure (OCI), the Autonomous AI Database, and OCI Generative AI, creating a seamless bridge between enterprise data and generative AI applications. The system aims to help organizations efficiently prepare, analyze, and operationalize data for AI, setting Oracle apart from cloud competitors Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL).
At the event, Oracle also unveiled AI agents and several major partnerships—including new deals with the U.S. Air Force and the Choctaw Nation of Oklahoma. A notable integration with Microsoft’s Azure IoT Operations and Microsoft Fabric will further enhance real-time supply chain visibility.
Chief Technology Officer Larry Ellison described the AI revolution as “bigger than the railroads or the industrial revolution,” signaling Oracle’s intent to be at the heart of the world’s next great technological leap. This bold direction underscores why the Oracle stock forecast has turned increasingly positive among analysts.
About Oracle Stock
Oracle, once best known for its relational database systems, has evolved into a global leader in cloud infrastructure and software-as-a-service (SaaS) platforms. Headquartered in Austin, Texas, Oracle now boasts a market capitalization of roughly $707 billion—cementing its place among the world’s top cloud and software providers.
The company’s stock performance in 2025 has been exceptional. ORCL shares surged 46% over the past year and roughly 50% year-to-date, driven by a booming backlog in cloud and AI contracts. The stock climbed from $118.86 to a record high near $345.72 in September, reflecting surging investor confidence in its AI-driven growth story.
However, with ORCL trading around 47.6 times forward earnings, the valuation sits well above historical averages—meaning expectations are high. That makes Oracle’s ability to deliver sustained performance key to its long-term stock forecast.
Strong Q1 Results Reinforce AI Growth Story
Oracle’s fiscal Q1 2026 earnings, released on Sept. 9, reinforced the bullish Oracle stock forecast. The company reported $14.9 billion in total revenue, up 12% year-over-year (YOY). Cloud revenue reached $7.2 billion, marking a 28% YOY jump. Within that, Infrastructure-as-a-Service (IaaS) revenue surged 55% to $3.3 billion, while Software-as-a-Service (SaaS) rose 11% to $3.8 billion.
Perhaps most impressive, Oracle secured four multi-billion-dollar contracts with three major clients during the quarter, boosting its Remaining Performance Obligation (RPO) to $455 billion—a 359% increase from a year earlier. Non-GAAP earnings per share (EPS) rose 6% to $1.47, and operating cash flow hit $21.5 billion over the past year, up 13%.
Looking forward, Oracle projects cloud infrastructure revenue to grow 77% to $18 billion this fiscal year and soar to $144 billion within five years, driven by long-term AI contracts and rising demand for OCI. Analysts forecast fiscal 2026 EPS at $5.41 (up 23% YOY) and expect it to climb another 19% annually to $6.46 in fiscal 2027.
Analyst Outlook on Oracle Stock
Analyst sentiment remains upbeat. Bernstein SocGen reiterated an “Outperform” rating with a $364 price target, calling Oracle a potential top-three hyperscaler and future AI training leader. Citi maintained a “Buy” rating and raised its target to $415, citing OCI’s expanding adoption and efficiency-driven margin gains.
Overall, Oracle carries a “Moderate Buy” consensus. Of 40 analysts, 27 rate it a “Strong Buy,” while 10 recommend “Hold” and two advise “Strong Sell.” The average price target of $350.88 implies around 40% upside, while the Street-high target of $430 suggests potential gains of up to 72%.
Bottom Line
Oracle’s strategic pivot to AI and cloud infrastructure is paying off, and its partnerships with major clients and governments underscore growing trust in its technology. While valuation risks remain, the company’s surging cloud revenue and long-term contracts make the Oracle stock forecast increasingly optimistic.
For investors seeking exposure to the AI infrastructure boom, Oracle’s latest moves could mark the start of another powerful growth phase.
Featured Image: Unsplash
