Oracle Stock Soars After New $30 Billion Cloud Deal

Oracle CEO Safra Catz planned to tell employees the company is off to a strong start for fiscal 2026. (ustin Sullivan/Getty Images)

Oracle’s cloud business is booming.

On Monday, the company issued a regulatory filing with the government saying CEO Safra Catz planned to tell employees later in the day that the current fiscal year is “off to a strong start” and that Oracle had signed several large cloud agreements. One of those is “expected to contribute more than $30 billion in annual revenue starting in FY28,” the filing said.

Oracle stock was up 5.5% to $221.88 in early trading.

Oracle has proven to be the third-party cloud provider of choice for leading artificial-intelligence-model companies, and it is a strong partner of Nvidia, the leading maker of AI chips. Oracle executive Mahesh Thiagarajan told Barron’s late last year that four of the five largest makers of AI large-language models use the company’s data centers.

On Sunday, Stifel analyst Brad Reback raised his rating for Oracle shares to Buy from Hold and increased his price target to $250 from $180, citing the robust prospects for the company’s cloud business. “We believe the combination of sustainable Cloud growth and opex discipline should enable Oracle to overcome the revenue mix shift headwinds and post accelerating EPS growth in FY27 and beyond,” he wrote.

Earlier this month, Oracle reported better-than-expected revenue for its fiscal fourth quarter. It also issued an upbeat forecast about growth in fiscal 2026.

Oracle shares are up 33% this year.

Write to Tae Kim at tae.kim@barrons.com