Oracle Stock Surges Over 5% on New Multibillion-Dollar Cloud Deals, Eyes Record High

Oracle stock experienced a significant surge, climbing over 5% midday and positioning itself for a record closing high. This rise followed the announcement of new multibillion-dollar cloud services agreements. In a filing with the US Securities and Exchange Commission, Oracle revealed that CEO Safra Catz highlighted the company’s strong start in FY26, with MultiCloud database revenue growing at over 100% and several large cloud services agreements signed, including one expected to generate more than $30 billion in annual revenue starting in FY28.

In the 2025 fiscal year, Oracle’s cloud services business generated $24.5 billion in revenue, contributing to a total revenue of $57.4 billion. The stock reached an intraday high of $228, although it later pared some gains. Despite this, Oracle stock was set to surpass its previous record close of just over $215. Shares have increased by more than 33% over the past month, outperforming the tech-heavy Nasdaq’s 6.4% gain.

The stock’s jump was further supported by a note from Stifel analyst Brad Reback, who upgraded Oracle to Buy from Hold and raised his price target to $250 from $180, citing momentum in its cloud business. Reback noted that cloud gains should lead to accelerating total revenue increases in the coming years.

Oracle has increased its capital expenditures significantly to build out data centers for artificial intelligence, rising from $6.9 billion in FY24 to $21.2 billion in FY25, with expectations to exceed $25 billion in the current year. Despite this, Oracle’s spending remains lower than other tech firms.

However, short seller Jim Chanos warned that the AI stock ecosystem could be nearing a pullback, comparing the surge in AI stocks to the dot-com bubble. Chanos highlighted the risk of capex pullbacks and project delays, which could lead to disappointing revenues and earnings forecasts.