Oracle’s stock has seen a strong rally in 2025, rising more than 20% and reaching a record high of $199.86 by Thursday’s close. This surge reflects growing investor confidence in the company’s transformation into a key force in the cloud computing and AI infrastructure sectors. However, in Friday’s pre-market trading, the stock pulled back slightly, dropping to $197.58.
One of the main reasons behind the stock’s strong performance is the company’s newly revised forecast for fiscal 2026. Oracle raised its annual revenue target to at least $67 billion, projecting a 16.7% increase year-over-year—up from the earlier estimate of 15%. This more optimistic outlook sparked a sharp jump in the stock price, with shares gaining over 13% on Thursday alone, making Oracle the top performer in the S&P 500 that day.
A major factor fueling this momentum is the rapid expansion of Oracle’s cloud and AI infrastructure segment. The Oracle Cloud Infrastructure business grew by 52% year-over-year, generating $3 billion in revenue. Looking ahead, the company expects growth in this segment to surpass 70% in fiscal 2026, driven by strong demand from businesses developing AI models and managing large-scale data operations.
Earlier in the year, Oracle further strengthened its position in the AI space through a partnership with OpenAI, launching a joint venture named Stargate. This collaboration focuses on delivering high-performance computing capabilities for advanced AI applications. The move has helped Oracle gain credibility as a serious competitor in the AI cloud infrastructure landscape, placing it alongside major players such as Amazon Web Services, Google Cloud, and Microsoft Azure.
