Oracle Corporation's stock (ORCL) soared nearly 4% on Monday, achieving a record closing high after the company announced major new cloud services contracts, as noted by Yahoo Finance. The software giant's filing with the US Securities and Exchange Commission detailed multibillion-dollar deals, sparking strong market enthusiasm.
Chief Executive Officer Safra Catz, in remarks prepared for Oracle's internal team, underscored the company's promising trajectory in fiscal year 2026, per Yahoo Finance. "Oracle is off to a strong start in FY26," she said. "Our MultiCloud database revenue continues to grow at over 100%, and we signed multiple large cloud services agreements including one that is expected to contribute more than $30 billion in annual revenue starting in FY28."
In its fiscal year ending May 31, Oracle generated $24.5 billion from cloud services, contributing to a total revenue of $57.4 billion, according to Yahoo Finance. This performance highlights the pivotal role of cloud computing in the company's growth strategy.
Oracle's stock surged up to 8.6% intraday, hitting $228, and last week eclipsed a prior high of just over $215. Over the past month, the stock has gained more than 33%, significantly outperforming the Nasdaq's 6.4% rise.
Stifel analyst Brad Reback upgraded Oracle to Buy from Hold, raising his price target to $250 from $180, driven by the company's cloud momentum. "Cloud gains should generate accelerating total revenue increases in coming years," he wrote, signaling confidence in Oracle's future.
Oracle's collaboration with OpenAI and SoftBank on the $500 billion Stargate project for US AI data centers, though stalled, remains a potential growth driver. Reback noted that "while Oracle's expanding relationship with OpenAI is expected to contribute to Cloud growth going forward, management has indicated that potential revenue from the Stargate project would be incremental to current total Oracle revenue growth expectations."
