Oracle continues momentum as Baird says it has found its ‘cloud mojo’

Oracle (NYSE:ORCL) has discovered what Austin Powers needed: mojo.

The IT tech giant has found its “cloud mojo,” according to investment firm Baird, as investors bid up shares more than 6% on Monday, adding to last week’s gains.

“Oracle reported strong FQ1 results on Monday, including accelerating OCI growth (to 46% growth YOY in cc vs. 42% in FQ4), leading to a surge in shares,” analyst William Power wrote in an investor note.

“Shares continued to work higher throughout the week, including after Thursday’s Financial Analyst session, where it updated expectations to reach $66 billion of revenue in F2026 (vs. $65 billion previously), and $104 billion of revenue in F2029 (implying a 16% CAGR in between F26-F29).”

Investors were pleased with Oracle’s most recent results, which saw its remaining performance obligations soar 53% during the period to $99B.

Cloud revenue (which includes infrastructure and applications) came in at $5.6B, as infrastructure revenue soared 45% year-over-year to $2.2B, while application revenue rose 10% year-over-year to $3.5B. Oracle also said that Fusion Cloud ERP revenue rose 16% to $900M.

Recent partnerships with Amazon (AMZN) Web Services and Google (GOOGL) (GOOGL) Cloud were also received well, as co-founder Larry Ellison briefly became the second-wealthiest person in the world.

Over the past five days, Oracle has added roughly $50B to its market cap and almost $100B to its market cap over the past month. Year-to-date, Oracle shares have gained 65%, outpacing the gains seen in its larger aforementioned cloud competitors, as well as other tech stalwarts like Apple (AAPL), Microsoft (MSFT) and Meta Platforms (META). (Oracle also has a cloud partnership with Microsoft and announced a deal with generative artificial intelligence startup OpenAI in June.)