Oracle Stock Hits Record High After Strong Q4 Earnings and AI Forecast
Oracle Corporation’s stock surged over 13% on Thursday, closing at a record high of $199.87, after the tech major reported better-than-expected financial results for the fourth quarter. The stock touched an intraday peak of $202.44, marking its highest level ever.
The company posted revenue of $15.9 billion, exceeding Wall Street’s estimate of $15.6 billion, while earnings per share came in at $1.70, ahead of the projected $1.64.
Buoyed by growing demand for its artificial intelligence cloud services, Oracle raised its revenue forecast for the year ahead. CEO Safra Catz said the company expects to generate at least $67 billion in revenue in FY26, up from the previous guidance of $66 billion.
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“More customers will use the Oracle database to leverage AI,” Catz told analysts on a post-earnings call.
Oracle’s recent gains come after it missed analyst expectations for two straight quarters. Analysts had remained cautious, but several now see Oracle as a stronger player in the AI space, especially compared to semiconductor firms more exposed to trade risks.
“Oracle seems better positioned in AI than many chipmakers who depend heavily on China-based manufacturing,” said Dan Morgan, vice president at Synovus.
Top investment firms including JPMorgan, Jefferies, UBS, and Deutsche Bank have raised their price targets on Oracle stock, with Jefferies setting a target of $220 and JPMorgan revising its target to $185.
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Despite Oracle’s rising valuation, which now trades at 32 times its projected 2026 earnings, analysts remain upbeat. For comparison, Microsoft trades at a forward P/E of 29.
Oracle is also planning a major capital investment in AI infrastructure. Its $25 billion CapEx projection for FY26 surpassed analysts’ forecast of $20 billion, driven by expansion plans under the Stargate AI project.
“We will build and operate more cloud infrastructure data centres than all our competitors combined,” said Oracle chairman Larry Ellison.
While Oracle’s investments may impact short-term free cash flows, analysts believe its long-term growth prospects in AI and cloud computing remain strong.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
