Oracle's New 52-Week High: Buy or Sell ORCL Stock?

Oracle has reached a new 52-week high due to its growing cloud and AI capabilities, positive analyst endorsements, and expanding cloud infrastructure business. However, the stock's valuation is lofty, with a price-to-earnings ratio of 43 times forward earnings, leaving little room for error. Oracle's recent Q4 2025 results exceeded expectations, with total revenue at $15.9 billion, up 11% YoY, and cloud services and license support revenue rising 14%.

Oracle Corporation (ORCL) has reached a new 52-week high, driven by robust cloud infrastructure growth and a strategic pivot toward artificial intelligence (AI). The company's aggressive expansion in data centers and landmark cloud deals have bolstered its competitive standing in the market.

According to a recent article from Zacks Investment Research [1], Oracle's stock has surged 43% year-to-date, reflecting strong execution of its cloud transformation strategy. The company's cloud infrastructure revenue grew by 52% in the fourth quarter of 2025, with total revenues of $15.9 billion. Oracle's ambitious fiscal 2026 guidance projects revenues of more than $67 billion, with cloud infrastructure growth exceeding 70%.

A key factor contributing to Oracle's stock performance is its strategic partnership with OpenAI, which includes a $30 billion annual cloud deal starting in fiscal 2028. This partnership underscores Oracle's AI infrastructure capabilities and positions the company as a critical enabler of enterprise AI adoption. Oracle Database 23ai, which introduces over 300 new AI-focused features, further solidifies Oracle's competitive advantage.

Oracle's expansion into data centers has also been a significant driver of growth. The company has completed partnerships across all major hyperscalers, including Amazon (AMZN) and Microsoft (MSFT) Azure. This multicloud strategy allows Oracle to provide seamless integration of its cloud infrastructure within these platforms, meeting the demands of enterprises that use or plan to use multiple cloud providers.

The company's strong financial execution has been reflected in its operating margins, which remain healthy at 44%. Capital expenditure is expected to exceed $25 billion in fiscal 2026, indicating a significant investment in infrastructure. However, the company's $138 billion remaining performance obligations (RPO) backlog provides strong visibility into returns on these investments.

Investment analysts have taken notice of Oracle's progress. TD Cowen recently raised its price target to $275, highlighting the AI-driven cloud momentum [2]. The company's premium valuation, with a three-year EV/EBITDA multiple of 28.93x, reflects investor confidence in its transformation success.

For existing holders, maintaining positions in Oracle makes sense given the company's successful execution and improving competitive positioning. New investors should consider accumulating shares during market volatility, particularly if economic concerns create temporary weakness in technology valuations. Oracle currently carries a Zacks Rank #3 (Hold).

References:
[1] https://www.nasdaq.com/articles/oracles-cloud-expansion-aws-3-key-reasons-hold-stock-now
[2] https://www.stocktitan.net/news/JROOF/jericho-energy-ventures-and-m2-development-solutions-llc-form-cz7xx8v233yt.html