Analysts have raised their recommendation on Oracle Corporation to a Buy rating, pointing to valuation levels not seen in several years despite the company’s ongoing growth momentum. In the most recent quarter, total cloud revenues increased 34% year-over-year, driven by a 68% surge in Oracle Cloud Infrastructure. Remaining performance obligations jumped 438% to $523 billion, signaling a strong backlog of contracted revenue. While high leverage and escalating funding costs are cited as potential headwinds, management’s positive guidance for the third quarter and robust demand for cloud services are expected to reduce default risks and support continued margin expansion.

Oracle shares climbed nearly 5% last Friday after investors responded to two key developments. First, Meta Platforms selected Oracle’s cloud infrastructure to support its Llama family of AI models, leveraging the company’s data-center capabilities in a deal tied to Meta’s new energy arrangement with Oklo. Second, HSBC identified Oracle among 11 U.S.-listed companies poised for significant upside in the upcoming earnings season, highlighting that Oracle ended 2025 with a project backlog nearly ten times larger than at the end of the prior year. These endorsements underscore Oracle’s position in the AI revolution and its ability to monetize long-term infrastructure commitments.