Oracle (ORCL) Stock: Climbs Almost 2% on OpenAI Partnership and Cloud Momentum

TLDRs;

• Oracle shares ticked up as investors welcomed momentum from its expanding OpenAI cloud partnership and massive AI-related demand.
• The company is preparing for its Dec. 10 earnings, where Wall Street expects another surge in cloud bookings.
• Analysts see Oracle’s multiyear AI infrastructure contracts as a transformative growth catalyst despite valuation and debt concerns.
• Market watchers predict Oracle could capture a much larger share of the cloud market as its AI-first strategy accelerates.

Oracle Corporation (NYSE: ORCL) gained 1.36% on Monday as enthusiasm around its strengthening cloud partnerships ,  particularly a landmark multi-year deal with OpenAI, bolstered investor sentiment. The stock’s uptick comes despite a year marked by volatility and a sharp retreat from its 2025 peak, leaving shares nearly 40% below their 52-week high.

Oracle Corporation, ORCL

Yet the pullback is attracting bullish analysts who argue that the market is overlooking Oracle’s rapidly expanding role in the global artificial intelligence infrastructure race. With the company set to release fiscal Q2 2026 earnings on December 10, expectations are building for another revealing snapshot of its AI-powered growth trajectory.

Analysts forecast revenue of roughly $16.2 billion, up significantly from $14.2 billion during the same quarter last year. Adjusted earnings per share are projected to rise from $1.47 to $1.64, underscoring confidence in Oracle’s cloud-first strategy.

A Massive OpenAI Partnership Reshapes Oracle’s Future

Much of the renewed optimism traces back to Oracle’s deepening partnership with OpenAI. Reports indicate the AI lab has committed to an unprecedented $300 billion, five-year cloud compute agreement, making it one of the largest infrastructure contracts ever signed in the technology sector.

This mega-deal positions Oracle as a top-tier provider of AI compute capacity alongside hyperscale rivals Amazon, Google, and Microsoft. For Oracle, the partnership is more than a revenue stream — it serves as validation of its bold bet on high-performance cloud architecture and multicloud interoperability.

Wells Fargo and Deutsche Bank both argue that the market is severely undervaluing the long-term earnings power of these AI contracts. Many analysts now frame Oracle as a potential breakout winner of the “AI super-cycle,” with some projecting cloud market share could triple by 2029.

Strategic Leadership Shifts and Surging Backlog Support Growth

Oracle’s leadership reshuffle also reflects its new growth phase. The elevation of Clay Magouyrk and Mike Sicilia to co-CEOs signals a future centered on cloud infrastructure and industry-wide AI integration. Founder Larry Ellison remains actively involved as chairman and chief technology officer.

Under the new leadership model, Oracle has expanded its ability to embed cloud services into customer data centers, partner clouds, and enterprise systems, a flexibility unmatched by other hyperscalers.

The proof is in its numbers: Oracle’s remaining performance obligations (RPO) have skyrocketed to more than $500 billion, a tenfold increase in just three years. These multiyear commitments underscore exceptionally strong demand for Oracle’s AI-ready cloud offering.

Debt Concerns and Valuation Risks Remain in Focus

Despite the enthusiasm, Oracle’s rapid infrastructure expansion has raised investor concerns about rising leverage and compressed margins. Analysts widely acknowledge the company is spending aggressively to build out dozens of new data centers capable of handling AI workloads.

Still, many see the debt concerns as exaggerated. Citi’s recent outlook suggests Oracle could report RPO above $600 billion this quarter, potentially easing pressure. Meanwhile, HSBC noted that Oracle may employ creative financing models ,such as joint ventures or special-purpose vehicles , to reduce balance sheet strain.

Even with these challenges, most major firms maintain Buy ratings, pointing to long-term tailwinds far outweighing short-term risks.

Investors Eye December 10 for Clarity

All eyes turn to December 10, when Oracle reports earnings that could either calm or compound market worries. A strong revenue beat, expanding backlog, or clarity around AI infrastructure strategy could reignite bullish momentum.

With the OpenAI partnership gaining global attention and enterprise cloud spending accelerating, Oracle stands at the center of one of the most consequential technology shifts in decades.

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