The rally briefly vaulted co-founder Larry Ellison to the top of the global rich list, overtaking Elon Musk for a few hours. Oracle now commands a market capitalisation of $933 billion—nearly three times the size of the Nifty IT index and more than double the entire value of Tata Consultancy Services (TCS).
For perspective, TCS—India’s largest IT firm—reported $30.2 billion in FY25 revenues and carries a $128 billion market value. By contrast, Oracle added more than that in a single trading session. According to Bloomberg data, the two companies had comparable valuations at the start of 2021—on January 22 that year, the gap between Oracle and TCS was just $8 billion. Today, that difference has ballooned to over $800 billion.
The Austin-headquartered database software giant projects its cloud infrastructure revenue to reach $32 billion by FY27, a sharp jump from the $10.2 billion reported in FY25. For FY26 alone, Oracle expects the segment to grow 77% to $18 billion, before surging to $114 billion by FY29 and further to $144 billion in FY30.
Earlier, the company had guided for incremental annual revenues of $30 billion from FY28, backed by a string of large cloud service agreements. In FY25, Oracle reported total revenue of $57.4 billion, up 8.4% year-on-year, while net profit rose 19% to $12.4 billion.
Oracle’s stock had already been on a tear before the latest surge—rising 45% year-to-date through Tuesday’s close, nearly four times the S&P 500’s gain. The rally has pushed its valuation to 34x CY26E GAAP operating income, compared with 22x for peers.
Notably, the latest rally has pushed Oracle’s stock beyond the consensus analyst target of $324.6. Of the 47 analysts tracked by Bloomberg, 35 have a “Buy” rating, with Citi assigning the highest target at $410. Shares closed Wednesday at $328.33, taking year-to-date gains to 97%.
(Edited by : Ajay Vaishnav)
