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Investing.com - Oracle (NYSE:ORCL), currently valued at $618 billion and trading near its 52-week high, received a vote of confidence from Barclays (LON:BARC) on Monday as the investment bank reiterated its Overweight rating and $221.00 price target on the software giant’s stock. According to InvestingPro data, Oracle has demonstrated impressive momentum with a 50.6% return over the past year.
The reaffirmation follows Oracle’s 8-K filing Monday morning, which disclosed the company’s strong start to fiscal year 2026 and revealed multiple large cloud services agreements. Most notably, one deal is expected to generate more than $30 billion in annual revenue starting in fiscal year 2028.
Barclays indicated that despite Oracle’s strong fourth-quarter performance, significant investor skepticism remained regarding the company’s ambitious long-term revenue targets, which include approximately 20% year-over-year revenue growth expected in fiscal 2027 and over $104 billion in revenue by fiscal 2029.
The newly announced cloud services agreement substantially reduces the gap between Oracle’s fiscal 2026 guidance of more than $67 billion and its fiscal 2029 target exceeding $104 billion, according to Barclays. The investment bank noted the deal supports Oracle’s projection of over 100% year-over-year RPO (remaining performance obligation) growth for fiscal 2026.
Barclays expects Oracle shares to move higher in response to this announcement, as the major cloud deal should significantly boost investor confidence in the company’s ability to achieve its long-term financial objectives.
In other recent news, Oracle Corp . has announced a significant start to its fiscal year 2026, with MultiCloud database revenue growth exceeding 100%. The company also signed major cloud services agreements, including a contract expected to bring in over $30 billion in annual revenue starting in fiscal year 2028. Stifel upgraded Oracle’s stock from Hold to Buy, citing substantial growth in capital expenditure and Remaining Performance Obligation (RPO) gains, with expectations for accelerated revenue growth in the coming years. Guggenheim also raised its price target for Oracle, maintaining a Buy rating, and highlighted the company’s shift towards focusing on operating income growth. Jefferies increased its price target for Oracle, noting robust RPO growth and a promising outlook for cloud services expansion. Additionally, Oracle partnered with xAI to offer Grok models through Oracle Cloud Infrastructure’s Generative AI service, enhancing AI capabilities for enterprise applications. This collaboration aims to leverage Oracle’s data platform for improved AI model performance. These developments reflect Oracle’s strategic focus on expanding its cloud and AI services, positioning the company for future growth.
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