Overview

• Oracle shares are up more than 100% over six months on surging cloud demand, major AI contracts and a record pipeline of booked work.
• RPO has spiked, with Jefferies calling it “nuclear” on a 359% year-over-year jump and Bernstein citing $317 billion in new RPO that could elevate Oracle toward hyperscaler scale.
• Bernstein’s Mark Shmulik describes Oracle’s TikTok arrangement as a game-changer that boosts relevance with consumer internet firms and showcases AI inferencing, while urging clarity on funding the OCI buildout.
• Reports indicate Meta is considering Oracle for AI compute and any U.S. action on TikTok could reshape the opportunity, though both remain unconfirmed.
• Analysts highlight execution risks from sharply higher capital spending—projected near 52% of FY26 revenue—while Oracle has guided to at least 16% FY26 revenue growth, stronger cloud growth above 40%, and says booked revenue could exceed $0.5 trillion, with CloudWorld and TikTok developments seen as near-term catalysts.