Oracle’s “Seismic Shift”: Analyst Views on AI-Driven Growth

Oracle’s AI Cloud Growth Fuels Stock Gains
Oracle’s stock nearly doubled in 2025, lifted by its $300 billion OpenAI deal. Even after weaker Q1 FY26 results of $14.9 billion revenue and $1.47 EPS, investors cheered forecasts of $18 billion in FY26 cloud revenue and long-term growth to $144 billion by FY30.

Safra Catz said Oracle’s backlog surged to $455 billion, up 359%, with AI leaders OpenAI, Meta, and xAI among new customers. The company’s AI edge comes from inference services linked to its proprietary databases and agent-based tools.

Risks include $35 billion in capex, fierce rivals, and uncertainty if AI adoption slows in a downturn. Some analysts also question whether growth is partly fueled by competitors outsourcing demand.

TipRanks data show a consensus target of $263.93, suggesting current valuations may be difficult to justify unless Oracle delivers tangible AI-driven returns.