Oracle Stock Forecast: Where Will It Stand in 3 Years?

Oracle’s Skyrocketing Growth: A Pathway to a Trillion-Dollar Giant

Oracle is poised to achieve substantial growth over the next three years, bolstering its status as a cloud computing behemoth. With Oracle’s impressive performance translating a $1,000 investment into nearly $4,600 within three years, the company’s significant 358% stock surge has outshined the S&P 500’s 84% gains. Currently valued at $802 billion, Oracle ranks as the 14th-largest global company, and there’s potential for even more growth.

Oracle’s Strategic Growth Blueprint

Concluding its fiscal 2025 on May 31, Oracle reported $57.4 billion in revenue, showcasing an 8% increase from the previous year. Notably, Oracle’s revenue in fiscal 2022 was $42.4 billion, marking over 10.6% compound annual growth over three years. The cumulative revenue for fiscal years 2023, 2024, and 2025 surpassed $160 billion, setting the stage for further expansion.

Analysts predict Oracle’s revenue could escalate, reaching $67 billion by fiscal 2026 and continuing this growth trajectory. This optimism stems from Oracle’s impressive $455 billion in remaining performance obligations (RPO) by the end of fiscal Q1, a 359% year-over-year increase, largely driven by heightened demand for its cloud infrastructure supporting AI applications.

Boosting Data Centers to Power Growth

Oracle’s strategic expansion includes increasing its multicloud data centers from 34 to 71 for its three hyperscale customers and doubling dedicated Oracle data centers to nearly 60 within the year. Oracle’s data center deployment surpasses all competitors combined, as highlighted by chairman Larry Ellison.

The Impact of Cloud Infrastructure Dominance

• Oracle operates in 51 regions across 26 countries, providing over 150 cloud-based services.
• Its multicloud offerings allow seamless integration with Microsoft Azure, Amazon AWS, and Google Cloud.
• This extensive network positions Oracle as a leader in the cloud infrastructure sector.

Future Revenue Growth Trajectory

Oracle’s revenue growth is set to gain momentum over the next two fiscal years, potentially reaching nearly $120 billion by fiscal 2028. This anticipated increase stems from its capacity-building initiatives and extensive data center rollout. If Oracle achieves $120 billion in revenue and aligns with the U.S. technology sector’s 9 times sales average, its market cap could soar to $1.08 trillion, indicating a possible 34% growth.

While Oracle’s current sales multiple stands at 14, continued market confidence could further enhance its valuation, leading to even greater gains.

Emegypt has no positions in any mentioned stocks. For disclosures, refer to The Motley Fool’s policy.