Oracle’s shares hit a record high, surging 14% to $201.38 on Thursday, as the company raised its annual revenue forecast driven by strong demand for its AI-related cloud services. The software giant now expects total revenue of at least $67 billion for fiscal 2026.
Oracle’s cloud offerings are helping companies build their AI infrastructure, and the company has announced a joint venture with OpenAI to deliver large-scale computing capabilities. Analysts say Oracle’s once-stodgy image is “cloud-native mage,” and its competitive map now looks like a battle-royale.
The Texas-based company’s cloud services quarterly revenue rose 14% to $11.70 billion, beating estimates of $15.59 billion. At least nine brokerages have raised their price target post-earnings, citing the strong demand for Oracle’s AI-related services.
Oracle trades at a forward price-to-earnings ratio of 25.86, compared to rivals Microsoft and Amazon. Shares of Microsoft gained 12.16%, while Amazon decreased by 2.8% so far this year.
Source: https://www.reuters.com/business/oracle-shares-soar-ai-cloud-demand-propels-revenue-forecast-2025-06-12