Oracle Corporation (ORCL) has set Wall Street abuzz with its ambitious revenue projections, sending its shares up more than 4% on Friday. The tech giant, known for its cloud services and database management systems, boldly announced its expectation to surpass $100 billion in revenue by fiscal 2029, riding the wave of artificial intelligence (AI) adoption.
This optimistic forecast comes as businesses increasingly rely on cloud services to power their operations and harness AI capabilities. Oracle, alongside industry titans Microsoft (MSFT) and Amazon (AMZN), stands at the forefront of this digital transformation, providing essential infrastructure for companies to thrive in the AI era.
The company’s leadership team, respected for its veteran status and proven track record, has raised eyebrows with this ambitious target. Piper Sandler, a prominent brokerage firm, noted [via Reuters] the forecast as “surprising” but indicative of growing optimism within Oracle’s ranks.
In addition to its long-term projection, Oracle has also revised its nearer-term expectations upward. The company now anticipates fiscal 2026 revenue to hit $66 billion, a billion-dollar increase from its previous estimate.
This adjustment follows Oracle’s strong first-quarter FY2025 performance, where it reported revenue of $13.31 billion, exceeding analysts’ predictions. Cloud services revenue, now the company’s largest business in terms of both operating income and EPS, increased 21% year-over-year to $5.6 billion.
The market has responded enthusiastically to Oracle’s growth narrative. On a year-to-year basis, the company’s shares have surged by more than 46%, outpacing larger cloud rivals Microsoft and Amazon, whose stocks have risen by approximately 28% and 29%, respectively.
Bernstein, another respected brokerage, has highlighted Oracle’s unexpectedly strong positioning to capture market share in cloud services. This sentiment is echoed across Wall Street, with at least six brokerages raising their target prices for Oracle following the robust fiscal 2029 forecast.
Despite its impressive rally, ORCL, last trading above the $166 level, continues to trade at a more conservative or attractive valuation compared to its peers. With a forward price-to-earnings ratio of 22.60, it presents a compelling investment case against Microsoft’s 35.22 and Amazon’s 53.73.
As Oracle sets its sights on the $100 billion revenue milestone, all eyes will be on the company’s execution in the rapidly evolving landscape of AI and cloud computing.
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