Oracle Surges on AI Momentum
Oracle stock has nearly doubled in 2025, riding momentum from a $300 billion partnership with OpenAI. While Q1 FY26 came in light at $14.9 billion revenue and $1.47 EPS, the market focused on strong guidance: $18 billion in infrastructure revenue this year, with growth to $144 billion by 2030.
CEO Safra Catz pointed to robust contracts and a ballooning $455 billion backlog, with marquee AI customers like OpenAI, Meta, and xAI. Oracle’s competitive edge lies in database-driven AI inference and new agent technologies.
The outlook is not without risk — $35 billion in FY26 capex, heavy competition from hyperscalers, and economic uncertainty could weigh on performance.
Most analysts remain positive, but valuation is a concern. TipRanks lists a consensus price target of $263.93, well below today’s price, reflecting skepticism about long-term sustainability.
