Oracle appears to be constructing some very big and strategic refineries. With sustainable growth, disciplined operations, and rich cloud partnerships, the company might finally be making a reputation as an upcoming tech giant. Oracle is not as flashy as newer tech favorites, but this latest upgrade by Stifel gives it a well-deserved moment in the spotlight. With cloud deals stacking up and infrastructure expenses ramping aggressively, Oracle is stealthily showing it can play in the same AI-fueled environment as Amazon, Microsoft, and Google. While critics have tended to portray Oracle as a company lagging in innovation, these new figures hint that a revolution is already on its way.
The evidence substantiates Stifel’s positive call. A 41% year over year increase in Oracle’s performance demonstrates strong demand for its cloud offerings. The $138 billion number highlights not only potential but a pledged obligation. The move to increase capital expenditures to $25 billion seems like a strategic move. It sets Oracle ahead in addressing skyrocketing AI-fueled computing demand, particularly as market leaders such as AWS, Azure, and Google Cloud incorporate Oracle’s database services. Although short-term margin compression is projected, careful management of operating expenses should enable profits to recover as revenue scales. The forecasted 30% growth annually in cloud revenue over the next two years implies that Oracle may soon be a dominant player in enterprise cloud infrastructure.
Long-term investors could view Oracle as a stable, under-valued technology stock just moving into a high-growth phase. This makes it more appealing in an anxious market that is hesitant to get caught up in short-term hype cycles. However, Oracle’s momentum is still behind its cloud rivals. Its transformation is too infrastructure-based, which is likely to be high-risk in a fluctuating tech economy. Oracle’s in-depth entrenchment in multicloud systems makes it a safe bet for big organizations that require stability, security, and compatibility. These are the three aspects that fresh competitors are not always able to promise. For investors and analysts tracking the cloud competition, Oracle’s next move could be its strongest yet.
Stifel raised Oracle Corp. to Buy from Hold, saying the software maker’s stepped‑up capital spending and swelling backlog point to “sustainable” growth in its cloud businesses. The brokerage raised its price target to $250, valuing the stock at about 30 times its forecast 2027 earnings of $8.35 per share. Oracle’s remaining performance obligations, a measure of contracted future revenue, jumped 41% year over year to $138 billion, driven by demand for computing power tied to artificial‑intelligence workloads and by customers running Oracle databases on Amazon Web Services, Microsoft Azure and Google Cloud. With orders outpacing supply, Oracle plans to lift capital expenditure about 20% to roughly $25 billion in fiscal 2026 and more than double its multi-cloud data‑center count to 47 over the next year, the analysts said.