Oracle Corporation (ORCL) shares surged 9.57% in pre-market trading on Thursday, following the release of better-than-expected fourth-quarter results and an optimistic outlook for its cloud business. The enterprise software giant's strong performance and ambitious growth projections have sparked enthusiasm among investors and analysts alike.

For the fiscal fourth quarter ended May 31, Oracle reported total revenue of $15.9 billion, up 11% year-over-year and surpassing analyst estimates of $15.59 billion. Adjusted earnings per share came in at $1.70, beating the expected $1.64. The company's cloud business was a standout performer, with cloud infrastructure revenue soaring 52% to reach $3 billion.

Looking ahead, Oracle provided a bullish forecast for fiscal year 2026, projecting even stronger growth in its cloud operations. CEO Safra Catz stated, "We expect our total cloud growth rate — applications plus infrastructure — will increase from 24% in FY25 to over 40% in FY26. Cloud Infrastructure growth rate is expected to increase from 50% in FY25 to over 70% in FY26." This optimistic outlook suggests Oracle is positioning itself to capitalize on the growing demand for cloud services and AI-related infrastructure.

The impressive results and promising future guidance have prompted numerous analysts to raise their price targets for Oracle stock. Jefferies increased its target to $220 from $200, while Deutsche Bank boosted its projection to $240 from $200. The positive sentiment is reflected in the broader analyst community, with 63% of the 41 analysts covering the stock maintaining a Buy or equivalent rating.