NEW YORK, June 1, 2026, 13:05 EDT
Oracle shares climbed over 8% in Monday’s New York session, pushing the stock higher as investors came back to the software company on stronger AI-cloud demand, earnings momentum and some technical buying. Oracle last traded at $244.73, up $18.95, putting its market cap at $712.5 billion.
Oracle’s stock is no longer a recovery story for investors. Now it’s about whether the market is ready to get past Oracle’s high spending. A Zacks piece picked up by Yahoo Finance pointed out the shares climbed above their 200-day moving average after jumping 31.4% in the past four weeks.
There’s more going on than the chart. Oracle’s remaining performance obligations—or revenue under contract but not yet recognized—were $553 billion at the end of its third fiscal quarter, a jump of 325% from a year ago. The company is projecting $67 billion in revenue for fiscal 2026 and $50 billion in capital spending, mainly for assets like data centers.
Oracle got a boost Monday after reporting fiscal third-quarter earnings that beat forecasts, with analysts showing more optimism and buyers coming back into software and AI infrastructure stocks, according to Investing.com. The company posted earnings of $1.79 per share on $17.2 billion in revenue. Analysts were looking for $1.70 per share and $16.92 billion in revenue.
Cloud is where the focus is for Oracle. The company reported a 44% jump in cloud revenue to $8.9 billion this quarter. Cloud infrastructure pulled in $4.9 billion, up 84%. Revenue from multicloud database, which has Oracle databases running on other cloud services, climbed 531%.
The bullish side on Wall Street points to Oracle’s backlog as a key shift. Wedbush analyst Dan Ives said Oracle’s March quarter report was a “huge relief” for investors who had been nervous about data-center spending. According to another note summary, Ives sees Oracle as positioning itself as a “foundational infrastructure provider for the AI Revolution.” TipRanks
Oracle is pushing for more cloud deals as it goes up against far bigger platforms from Microsoft, Amazon and Alphabet’s Google. On Monday, Microsoft shares gained roughly 2.6%. Amazon dropped about 3.2%, and Alphabet was down around 1.4%. Oracle’s rise was more notable compared to the rest of the big cloud and AI-infrastructure stocks.
But the rally depends on expensive expansion. Reuters said in February that Oracle plans to raise $45 billion to $50 billion in 2026 with debt and equity to grow its cloud infrastructure, and investors are eyeing how much Oracle relies on big AI clients and what that means for cash flow. The key risk: if AI demand drops or if new data centers fill up slower than planned, Oracle may end up with more debt before revenue increases.
Bearish bets are showing up in filings. Situational Awareness LP reported a $1.07 billion put-options position against Oracle, with contracts on 7.293 million shares as of March 31, according to a Securities and Exchange Commission filing. Put options can rise in value if a stock goes down. The 13F disclosures are historical and don’t say if the position is still in place.
Buyers are still looking at Oracle’s backlog as visibility on revenue, not just as a pipeline. The focus now is on whether the company can actually convert those AI contracts to booked sales at a pace that covers its data-center costs.
