Cloud power: Why Oracle stock is rising

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Eugene Komchuk

11.03.2026

Cloud power: Why Oracle stock is rising — Oracle stock growth and the company’s prospects

Oracle released a strong quarterly report that pushed its stock higher. Investors reacted positively to the growth of the company’s cloud business and improving financial results. But do Oracle shares have the potential for a much bigger rally?

What the market saw in Oracle’s report

On March 10, Oracle (ORCL) shares jumped after the company released quarterly results that exceeded market expectations. At the close of trading, the stock was around $150, and after the report it rose by about 10% in after-hours trading. This was the market’s reaction to strong financial results and an updated company forecast.

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Oracle’s net income for the quarter rose to $3.7 billion, up from $2.94 billion a year earlier. Earnings per share, as well as total revenue of $17.2 billion, also came in above analysts’ expectations. Another driver for the stock was the company’s new outlook: Oracle raised its revenue target for fiscal year 2027 to $90 billion.

The report also showed that the company’s cloud business is growing particularly fast. Total revenue from this segment increased 44%, while revenue from cloud infrastructure surged 84%. This segment is now considered key for Oracle because the company is actively expanding data centers and computing capacity needed to train and run artificial intelligence models.

Why the cloud business became Oracle’s “fuel”

Oracle is one of the oldest technology companies in the United States. Founded in 1977, it long made most of its money from database software. These systems are used by banks, corporations, and government institutions to store and process large volumes of information.

In recent years, however, the company has begun reshaping its strategy. Oracle has been developing its own cloud — a network of data centers where businesses can store data, run applications, and access computing power via the internet. This is the same market where Amazon Web Services, Microsoft Azure, and Google Cloud compete.

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This business has now received a second boost thanks to artificial intelligence. Training and running AI models requires enormous computing power, which cloud providers supply. Oracle is rapidly building new data centers and signing major contracts with AI companies, including OpenAI. As a result, the company is transforming from a software developer into a provider of infrastructure for artificial intelligence.

What prospects Oracle has

Despite the strong report, investor sentiment toward Oracle remains mixed. From its September peak of about $345 per share, the stock has lost more than half of its value. Much of this decline is linked to the massive spending on AI infrastructure and market concerns about how sustainable this growth model will be.

Attention has also been drawn to reports of layoffs. According to Bloomberg, Oracle is preparing to cut thousands of jobs to control costs amid large-scale data center construction. The company has also reported restructuring its development teams, explaining that new AI tools allow more software to be created with smaller teams.

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At the same time, Oracle is not slowing its investments. The company still plans to spend about $50 billion expanding its cloud infrastructure and data centers. For some investors, this looks like a bet on future growth; for others, it represents additional risk, especially given the company’s debt load and negative free cash flow.

A balance between growth and risk

In the coming years, much will depend on whether Oracle’s bet on AI infrastructure pays off. Demand for computing power for artificial intelligence continues to grow, and the company is trying to carve out its place alongside the world’s largest cloud providers. If Oracle can maintain the rapid growth of its cloud business and meet its revenue forecasts, it could support further gains in the stock.

However, investors are also watching how quickly these enormous investments will turn into stable profits and cash flow. For now, the market is waiting to see whether Oracle can prove that its strategy of massive spending on AI infrastructure will become a long-term driver of growth — rather than an expensive bet on the future.

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