A significant revenue pipeline has positioned Oracle as a strong contender for joining the esteemed trillion-dollar market cap club, capitalizing on the surging growth of artificial intelligence (AI). Over the past three years, numerous tech companies such as Nvidia, Broadcom, and TSMC have made their entries into this elite group, largely due to AI advancements. With the AI market projected to exhibit a compound annual growth rate of nearly 36% through the end of the decade, the potential for additional companies to achieve similar financial milestones remains promising.
Oracle, which has recently seen its stock soar by 88% in 2025, now boasts a market cap nearing $877 billion. This surge positions the company as only 14% away from reaching the $1 trillion threshold, fueled by an impressive upswing in both revenue and earnings, primarily linked to robust demand for its cloud computing services.
The company has raised its fiscal 2026 revenue guidance to at least $67 billion, anticipating nearly a 17% year-over-year improvement. This projection could very well be eclipsed, given the soaring demand for Oracle’s data center offerings, particularly as businesses increasingly rely on these resources for AI-related activities. The Oracle Cloud Infrastructure (OCI) division has been significantly bolstered by organizations renting data center capacity to support AI models and develop tailored applications.
Notably, OpenAI has committed to a substantial agreement with Oracle, set to pay $300 billion over five years for data center access. Additionally, Oracle concluded the first quarter of fiscal 2026 with an impressive $455 billion in remaining performance obligations (RPO), representing a staggering 359% growth compared to the prior year. CEO Safra Catz expressed optimism about signing further multi-billion-dollar clients, predicting that RPO could surpass half-a-trillion dollars soon.
The impressive backlog indicates that Oracle is well-positioned to elevate its revenue estimates, with OCI revenue projected to increase by 77% in fiscal 2026, reaching $18 billion. This growth trajectory is expected to continue, with revenue anticipated to jump to $32 billion the following year and over $73 billion by fiscal 2028. The ongoing expansion of Oracle’s cloud capabilities is expected to play a pivotal role in achieving a trillion-dollar market cap.
Market analysts have set a median 12-month price target of $350 for Oracle, suggesting a potential increase of 13% from current levels, which could be crucial in propelling the company into the trillion-dollar realm. Investors may find Oracle’s current sales multiple of 15, while higher than the U.S. tech sector average, justified given its favorable growth outlook. Sustaining this valuation and reaching $70 billion in revenue by fiscal year-end could set the stage for Oracle to achieve the coveted milestone.
As investors look for the next trillion-dollar entity, Oracle presents a compelling opportunity, particularly with its potential for accelerated growth in the upcoming years, setting the company on a path towards becoming a more significant player in the tech landscape.
