Oracle Boosts Cloud Business with AI-Driven Contracts, Cantor Fitzgerald Raises Target to $400

Cantor Fitzgerald analyst Thomas Blakey raised Oracle's (ORCL) target to $400, citing booming AI-related contracts driving growth in its cloud business. The company reported 359% YoY growth in Remaining Performance Obligations, an increase of $317 billion. The analyst expects the stock to trade on long-term AI growth potential, with upside potential when comparing the $317 billion to new contracts to the FY26-30 outlook.

Oracle Corporation's (ORCL) stock experienced a significant surge on September 11, 2025, as the company reported a substantial increase in its Remaining Performance Obligations (RPO), an indicator of future revenue. The stock surged 36% to close at $328.33, adding over $250 billion to the company's market value and pushing its total valuation above $920 billion Oracle (ORCL) Stock: Explodes Higher as AI Contracts Drive Backlog To All-Time Highs^[1].

The primary driver behind this rally was Oracle's revelation of a $455 billion backlog in AI infrastructure contracts, a 360% increase year-over-year. This backlog includes a $300 billion five-year agreement with OpenAI, among other major deals Oracle (ORCL) Stock: Explodes Higher as AI Contracts Drive Backlog To All-Time Highs^[1]. The company's cloud infrastructure business is projected to reach $144 billion annually by 2030, with a 77% growth expected in the current fiscal year Oracle’s Earnings Call Highlights Cloud Growth and AI Leadership^[2].

Oracle's CEO, Safra Catz, disclosed that the company signed four multibillion-dollar AI infrastructure deals during the first quarter. These deals, along with the strong demand for Oracle Cloud infrastructure, have significantly boosted the company's future revenue potential Oracle (ORCL) Stock: Explodes Higher as AI Contracts Drive Backlog To All-Time Highs^[1]. The stock rally also made Oracle's co-founder and executive chairman, Larry Ellison, the world's richest person, surpassing Elon Musk's net worth Oracle (ORCL) Stock: Explodes Higher as AI Contracts Drive Backlog To All-Time Highs^[1].

Analysts reacted mixedly to the news. While some, like JPMorgan's Mark Murphy, questioned Oracle's customer concentration risk, others, such as William Blair's Sebastien Naji, described the results as "astonishing" and validated growing market optimism about AI infrastructure demand Oracle (ORCL) Stock: Explodes Higher as AI Contracts Drive Backlog To All-Time Highs^[1]. Cantor Fitzgerald analyst Thomas Blakey raised Oracle's target to $400, citing the booming AI-related contracts driving growth in its cloud business Massive RPO Surge at Oracle: A Sign of Strong Forward Visibility?^[3].

Despite the stock surge, Oracle missed Wall Street earnings expectations. The company reported $1.47 per share versus analyst estimates of $1.48 per share. However, the disconnect between earnings results and stock performance highlights investor focus on future growth potential. Oracle's massive contract backlog suggests strong revenue visibility for coming years Oracle (ORCL) Stock: Explodes Higher as AI Contracts Drive Backlog To All-Time Highs^[1].