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Oracle posted blockbuster gains on Wednesday, and the rally may not be over, according to equity analysts at Jefferies.
The surge in Oracle’s stock price came after the software giant shocked Wall Street with a record $455 billion in remaining performance obligations, or RPO — a measure of contracted future revenue — in its fiscal first quarter.
That figure was up 359% year over year, surpassing cloud rivals Microsoft, Amazon, and Google, according to Jefferies’ analysis.
Following the earnings release, Oracle’s New York-listed stock closed 36% higher at $328.33 on Wednesday — its best one-day performance since 1992.
The phenomenal gains also briefly propelled CEO Larry Ellison to the position of the world’s richest person, surpassing Tesla CEO Elon Musk.
Those eye-popping gains could be a sign of more to come for the $922 billion company.
“We see room for the stock to grind even higher as optimism builds around the outlook,” wrote Jefferies’ analysts in a Wednesday note.
They lifted Oracle’s price target from $270 to $360 — implying 10% further upside from Wednesday’s close.
Jefferies projects Oracle Cloud Infrastructure to expand 77% year-over-year to $18 billion in fiscal 2026 before scaling to $144 billion by 2030. This would represent a compound annual growth rate of nearly 70% from 2025 and outpace consensus forecasts by more than $50 billion.
Meanwhile, Oracle’s multicloud database revenue surged more than 1,500% year over year, which Jefferies said underscores the robust adoption of its multicloud strategy.
That growth looks poised to continue: Oracle plans to add 37 data centers over the next several years.
Still, not everything met consensus in Oracle’s first quarter.
Revenue rose 12% year-over-year, shy of Wall Street’s 13% forecast.
Software and infrastructure as a service growth also came in under consensus. Oracle raised its capital expenditure forecast to $35 billion for fiscal 2026 — a 65% jump that mirrored an acceleration in infrastructure investment.
“The increase illustrates persistent supply constraints amid surging demand, particularly from AI workloads,” wrote the analysts at Jefferies.
They warned that the ongoing AI infrastructure build-out is likely to compress margins going forward.
Even so, Jefferies said those near-term pressures are outweighed by the company’s huge backlog and accelerating demand for AI workloads.
Oracle shares are extending gains to trade 1.4% higher in after-hours trade on Thursday. The stock is up 97% year-to-date.
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