“Over $30 billion annually.” That was perhaps the key takeaway from a report that noted big new deals ahead for networking giant Oracle (ORCL). And the huge new gains in revenue set to hit in the next three years gave investors a whole lot of reason to buy in today; investors sent shares rocketing up nearly 4.5% in Monday afternoon’s trading.
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Early reports noted that CEO Safra Catz was expected to point out that Oracle was off to a flying start to kick off its fiscal year 2026. That by itself might not mean so much, but Catz was ready with follow-up and receipts, including a better than 100% growth rate for MultiCloud databases. Then, of course, there was that $30 billion showstopper to serve as the cherry on top.
There was a bit of bad news that came along with that deal, though; reports noted that that particular deal would not start having actual impact on revenue until fiscal year 2028. But just knowing that the cash was likely to be forthcoming was enough to buoy investors’ spirits. The specifics of the deal were kept rather quiet, though, likely owing to the fact that it will not kick in for a couple of years yet.
Ellison’s Big Plans
Further, new reports say that this is not the end of Oracle’s road, but rather just the latest in a series of gains to come. At least, that is how it will work if chief technology officer Larry Ellison has his way. Ellison noted, not so long ago, that Oracle looks to be top of the heap in three key areas: cloud applications, cloud databases, and building cloud data centers.
The cloud database goal is likely to be met, Ellison noted, thanks to a wide array of data currently being stored in Oracle databases. And with artificial intelligence (AI) agents set to step in—despite reports that a lot of agentic AI systems are likely to fail within the next couple of years, Oracle’s systems on this front are likely to endure.
Is Oracle a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ORCL stock based on 20 Buys and 12 Holds assigned in the past three months, as indicated by the graphic below. After a 46.93% rally in its share price over the past year, the average ORCL price target of $214.64 per share implies 2.41% downside risk.
