Oracle's stock skyrocketed. Jefferies analysts say there could be even more room to run.

Core Insights - Oracle reported a record $455 billion in remaining performance obligations (RPO), indicating strong future revenue potential, which led to a significant stock price increase [1][2] - The stock surged 36% to close at $328.33, marking its best one-day performance since 1992, and briefly made CEO Larry Ellison the world's richest person [2] - Jefferies analysts raised Oracle's price target from $270 to $360, suggesting further upside potential [3] Financial Performance - RPO increased by 359% year-over-year, surpassing competitors like Microsoft, Amazon, and Google [2] - Revenue grew 12% year-over-year, slightly below Wall Street's forecast of 13% [5] - Software and infrastructure as a service growth also fell short of consensus expectations [5] Growth Projections - Jefferies projects Oracle Cloud Infrastructure to grow 77% year-over-year to $18 billion by fiscal 2026, with a long-term target of $144 billion by 2030, indicating a compound annual growth rate of nearly 70% [4] - Multicloud database revenue surged over 1,500% year-over-year, highlighting strong adoption of Oracle's multicloud strategy [4] Strategic Initiatives - Oracle plans to add 37 data centers in the coming years to support growth [5] - The increase in capital expenditure forecast to $35 billion for fiscal 2026 reflects a 65% rise, driven by infrastructure investment [5] Market Dynamics - Analysts noted that the ongoing AI infrastructure build-out may compress margins in the future, but the strong backlog and demand for AI workloads are expected to outweigh these pressures [8]