Oracle Surges: Cloud Growth Fuels 23% Upside

Oracle (NYSE:ORCL) has seen a substantial increase in its stock value, closing at $175.06 and presenting an estimated 23% upside potential according to analysts.

Despite recent gains, the stock had been down year-to-date and significantly off its 52-week high. However, Q3 FY2026, reported on March 10, 2026, proved to be a turning point. This quarter marked the first time in over 15 years that Oracle achieved concurrent growth of over 20% in both organic total revenue and non-GAAP EPS.

During Q3 FY2026, total revenue reached $17.19 billion, with non-GAAP EPS at $1.79. Cloud revenue demonstrated robust growth, climbing 44% year-over-year to $8.91 billion, while IaaS revenue surged by 84% to $4.89 billion.

The company's strong financial position is further underscored by its $553 billion in Remaining Performance Obligations (RPO), representing a 325% year-over-year increase. Management has raised FY2027 revenue guidance to $90 billion, with Oracle Cloud Infrastructure revenue projected to reach $144 billion over the next five years, with a significant portion already booked.

Analysts maintain a predominantly bullish stance on Oracle, with a strong consensus target of $246.46. The bull case scenario suggests the stock could reach $344.19 within the next 12 months if IaaS growth continues and the RPO pipeline converts as planned.