Oracle (ORCL) recently delivered solid financial results for its fiscal Q4 2025. Following the earnings release, Oracle stock jumped about 13% in early trading on Thursday, June 12. While the company wrapped up its fiscal 2025 on a solid note, its outlook for fiscal 2026 indicates an acceleration in its growth rate, which could lead to further stock price gains.

Key drivers behind this bullish sentiment include Oracle’s strategic initiatives in AI integration, marked by the deployment of over 100 AI agents. This move is expected to bolster growth in cloud applications, further supported by robust bookings and increased renewal rates for its software as a service (SaaS) offerings. Additionally, Oracle Cloud Infrastructure (OCI) is poised for a substantial revenue uptick amid rising demand for its infrastructure services.

ORCL shares are already up more than 27% over the past month, but analysts still see room for growth. The Street-high price target is $246 via WestPark Capital, implying 23% upside from current levels.

Why FY26 Could Be a Breakout Year for Oracle Stock

Oracle is charging full speed ahead into the cloud and AI era, and the numbers from its latest quarterly earnings and outlook suggest that FY26 could be a breakout year for its stock. With total quarterly revenue climbed to $15.9 billion, up 11% year-over-year, the company is signaling that its focus on cloud and AI is paying off in a big way.

A key driver of this growth is Oracle’s cloud business, which encompasses both software-as-a-service (SaaS) and infrastructure-as-a-service (IaaS) offerings. Combined, cloud revenue reached $6.7 billion for the quarter, up 27% from the same period last year. Infrastructure revenue jumped 52%, marking the second consecutive year of solid growth. Oracle Cloud Infrastructure (OCI) consumption revenue soared 62%, reflecting the persistent demand that is outpacing supply.

Oracle’s infrastructure cloud services are now generating nearly $12 billion in annualized revenue. Cloud database services, a key component of its long-term growth strategy, have grown 31% year-over-year and are now approaching $2.6 billion in annual revenue. Autonomous Database consumption revenue surged 47%, building on 27% growth last year.

Its MultiCloud offerings, which enable its database services to run on Amazon (AMZN), Google (GOOG), and Microsoft (MSFT) platforms, saw explosive quarter-over-quarter revenue growth of 115%, reflecting an increasing customer appetite for hybrid and flexible cloud environments. To meet that demand, Oracle is expanding aggressively. It already operates 23 MultiCloud data centers and plans to build 47 more in the coming year. That’s in addition to 29 Oracle Cloud@Customer data centers currently live, with another 30 in development. This infrastructure footprint positions the company to serve enterprise clients with highly customized and secure cloud environments, an offering that continues to attract strong demand, with revenue from Cloud@Customer growing 104% year-over-year.

Oracle’s future revenue visibility is also exceptionally strong. Oracle ended the quarter with $138 billion in remaining performance obligations (RPO), up 41%. Of this, 80% is cloud-related, and 33% is expected to be recognized as revenue within the next 12 months. That backlog sets the stage for a significant acceleration in top-line growth.

Looking ahead to fiscal year 2026, Oracle is guiding for revenue north of $67 billion, up from the previous forecast of $66 billion. That represents a 16% year-over-year increase. Oracle projects its total cloud revenue growth rate (applications plus infrastructure) to jump from 24% in FY25 to over 40% in FY26. Meanwhile, Cloud Infrastructure growth is expected to surge from 50% to more than 70%, and RPO could more than double.

With demand booming across every cloud segment, from SaaS to infrastructure to MultiCloud and database services, FY26 is shaping up to be a transformative year.

Here’s What Analysts Recommend for Oracle Stock

Analysts are cautiously optimistic about Oracle stock, given the macro uncertainty. While ORCL stock has a “Moderate Buy” consensus rating, that sentiment could strengthen in the near term, with several Wall Street experts possibly revising their price target upward following its latest earnings and upbeat outlook.

Conclusion: Will Oracle Stock Hit $246 in 2025?

Oracle is on a strong trajectory heading into fiscal 2026. The company’s robust Q4 results, aggressive expansion into cloud and AI, and rising revenue all point toward accelerating growth. With infrastructure consumption demand outpacing supply, cloud revenue soaring, and a substantial backlog, Oracle is well-positioned for sustained momentum. If these trends continue, Oracle could very well reach or even exceed the $246 price target in 2025.