Oracle's AI Cloud Surge: Revenue Forecast Boosts Shares

Oracle experienced a notable surge in premarket trading, with shares climbing nearly 8% following an upgrade in the company's annual revenue forecast. This bullish outlook is largely attributed to a robust demand for Oracle's AI-related cloud services, propelling its stock up nearly 6% this year as faith in the software sector endures.

In a strategic move earlier this year, Oracle introduced Stargate, a partnership aimed at enhancing large-scale computing capabilities for OpenAI. Michael Ashley Schulman of Running Point Capital Advisors remarked on Oracle's evolution from a 'stodgy' image to a 'cloud-native mage', indicating a transformative competitive landscape.

Oracle's CEO, Safra Catz, announced a projected total revenue of at least $67 billion for fiscal 2026, as the company reported quarterly cloud services revenue rising by 14% to $11.70 billion. Following these strong financial results, several brokerages raised their price targets for Oracle's stock, which trades at a forward P/E ratio of 25.86.

(With inputs from agencies.)