Oracle Breaks Out! Up 35% Since Earnings — Is the Cloud Boom Just Beginning?

After a 22% jump following its earnings report and another 10.5% rally last week, $Oracle(ORCL)$ just hit a record high!

Some savvy traders in our community seized the opportunity:

🎉 Huge congrats to @IamZhong for locking in $1,250 in profits on $Oracle(ORCL)$.

🎉 Huge congrats to @Platce for securing 54% returns by buying $Oracle(ORCL)$ calls.

🎉 Huge congrats to @Huatkia88 for earning 97% returns by selling $Oracle(ORCL)$ puts.

When a company offers strong guidance and a high degree of earnings clarity, all three strategies—buying shares, call options, or selling puts—can be smart ways to ride the momentum.

What’s Driving Oracle’s Breakout?

Oracle offers a broad suite of cloud products, including SaaS applications, Oracle Cloud Infrastructure (OCI), and advanced database services.

The Q4 FY2025 earnings were a turning point:

• Both revenue and non-GAAP EPS beat expectations.

• More importantly, Oracle signaled a major growth inflection for FY2026.

One standout metric? Remaining Performance Obligations (RPO) are expected to double year-over-year—a key forward indicator showing future contracted revenue yet to be recognized.

In the press release, management even stated:

“RPO growth in fiscal 2026 could exceed 100%.”

Compare that to 41% in FY2025 and 44.2% in FY2024—it’s a huge leap. That RPO surge supports Oracle’s forecast of $67B+ in revenue for FY2026, implying 16% YoY growth, up from 8.4% last year.

Cloud Is Now the Growth Engine

Cloud is officially Oracle’s largest business segment. OCI revenue jumped 52% YoY in Q4, lifting total cloud revenue by 27% YoY.

Management now expects:
☁️ OCI revenue to grow at least 70% in FY2026
☁️ Total cloud revenue to grow over 40%

And with Oracle signing major deals with AWS, all hyperscalers may increasingly rely on Oracle’s database technology.

Yes, margins are feeling pressure and free cash flow dipped slightly—but the trade-off for cloud and AI expansion could be worth it.

How Does Oracle Compare?

Currently trading at 34.25x forward P/E, Oracle may seem pricey—until you compare:

• Microsoft (MSFT): 32.98x

• Amazon (AMZN): 36.08x

• Nasdaq 100 Index: 28.6x

Given its projected 16% annual growth, Oracle could grow into its valuation quite comfortably.

In terms of cloud:

• Oracle’s cloud revenue is growing faster than AWS

• OCI's 52% growth outpaces peers

• Forecasted 70% OCI growth in FY2026 is aggressive but impressive

Plus, Oracle offers a 0.81% dividend yield, higher than Microsoft’s 0.65%, and boasts better cash efficiency than Amazon based on price-to-cash flow.

So… what’s your play from here?

🟢 Chase the breakout
🔵 Wait for a pullback
🟡 Sell puts and collect premium?

Drop your thoughts below ⬇️

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