Oracle’s Stock Hits Record Highs as AI Demand Continues to Drive Growth

Oracle Corporation’s stock (NASDAQ: ORCL) delivered a stunning performance on Thursday, with shares surging 13.99% to breach the $200 mark for the first time in the company’s history. The enterprise software giant reported quarterly earnings per share of $1.70, beating analyst expectations by 3.37%, while raising its annual revenue forecast driven by unprecedented demand for AI-related cloud services. The stock reached a record high of $201.05, representing a remarkable gain of $24.67 from the previous close of $176.38, as investors responded enthusiastically to the company’s robust cloud outlook and AI infrastructure positioning.

Oracle Shares Gain on Strong Results Driven by AI Demand

Oracle’s fourth-quarter results exceeded expectations across multiple metrics, with the company announcing quarterly EPS of $1.70 that surpassed analyst estimates by 3.37%. The Texas-based enterprise software company reported overall revenue of $15.90 billion, beating consensus estimates of $15.59 billion, while cloud services quarterly revenue rose an impressive 14% to $11.70 billion. CEO Safra Catz announced during the post-earnings call that Oracle expects total revenue to reach at least $67 billion for fiscal 2026, significantly boosting investor confidence in the company’s growth trajectory.

The earnings beat was particularly notable given the company’s positioning in the rapidly expanding AI infrastructure market. Oracle’s cloud offerings, which help companies build their AI infrastructure, have benefited from the massive demand for computing capabilities needed to support artificial intelligence applications.

The company’s involvement in the Stargate joint venture with OpenAI to deliver large-scale computing capabilities has further solidified its position as a key player in the AI ecosystem, transforming what analysts describe as Oracle’s “once-stodgy image” into that of a “cloud-native mage.”

Market reaction was swift and decisive, with at least nine brokerages raising their price targets following the earnings announcement. The strong performance comes despite broader geopolitical tensions and concerns about potential tariffs that could impact Big Tech’s AI investments.

Oracle’s ability to deliver exceptional results in this environment demonstrates the resilience of demand for AI-related cloud services and the company’s effective execution in capturing this market opportunity.

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Oracle’s Shares Hit New Highs

Oracle’s stock performance on Thursday showcased dramatic intraday movement, opening at $189.96 and climbing steadily throughout the trading session to reach a record high of $201.05. The stock’s day range extended from $188.88 to $201.99, with trading volume reaching 34,064,751 shares, significantly above the average volume of 9,722,209. The 13.99% gain represented the stock’s best single-day performance in recent memory, with the company’s market capitalization reaching $564.25 billion at the close.

Key financial metrics highlighted Oracle’s strong valuation position relative to competitors, with the stock trading at a forward price-to-earnings ratio of 25.45, compared to Microsoft’s 31.34 and Amazon’s 31.80. The company’s trailing P/E ratio of 41.40 reflects investor confidence in future growth prospects, while maintaining a reasonable valuation compared to other AI-focused technology stocks. Oracle’s year-to-date return of 21.48% significantly outpaced the S&P 500’s 2.56% gain, while the one-year return of 44.94% demonstrated sustained investor enthusiasm for the company’s AI cloud strategy.

Analyst price targets now range from a low of $145.00 to a high of $246.00, with an average target of $204.78, suggesting potential upside from current levels.

The stock’s 52-week range of $118.86 to $201.99 illustrates the remarkable appreciation driven by AI demand and cloud transformation. With strong financial metrics including a profit margin of 21.80% and return on equity of 103.74%, Oracle has positioned itself as a compelling investment opportunity in the evolving AI infrastructure landscape, with analysts describing the company as entering “an entirely new wave of enterprise popularity not seen since the Internet era in the late 90s.”

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.