‘Bouncing Upward’: Top Investor Details Why Oracle Stock Soared Yesterday

There’s been a roaring wave throughout the market, one that’s been gathering steam over the course of the past few months. Oracle (NYSE:ORCL) has been caught up in the riptide.

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That would be the worries over huge AI capex spending, both among Oracle and within the hyperscaler community. These fears – of shrinking margins, unclear ROI, and even the start of a bubble – have been pressuring share prices near and far.

For Oracle, there are some additional concerns. For one thing, a strong chunk of the company’s huge backlog relies on OpenAI, a company that has yet to turn a profit. Recent news, that the two had decided not to expand an AI data center in Texas, didn’t help calm doubts.

Moreover, Oracle will need to take on significant financing in order to build out the necessary compute power. The company announced in early February its intention to raise $45 to $50 billion in gross cash proceeds during 2026.

ORCL is down some 44% over the last six months.

Thus, yesterday came as a welcome relief for shareholders, who saw ORCL stock rise by over 9% in the Wednesday session. What happened to change the tide?

Top investor Joe Tenebruso has the answer.

“Shares of Oracle rallied on Wednesday, as investors applauded the tech titan’s strong quarterly earnings report,” shared the 5-star investor, who is among the top 1% of stock pros covered by TipRanks.

Specifically, Tenebruso is referring to the company’s fiscal 2026 third quarter report. Clearly, the market liked what it saw.

In fact, Oracle saw revenue jump 22% year-over-year to hit $17.2 billion in its fiscal 2026 third quarter, and Cloud Infrastructure revenue surged by an even more impressive 84%. Things were also looking good on the bottom line, notes Tenebruso. Non-GAAP operating income grew by 19% to reach $7.4 billion.

“The software colossus is quickly scaling capacity while maintaining impressive profit margins,” adds Tenebruso.

Going forward, the investor appears pleased with the company’s ability to continue growing revenues and improving margins. He notes that management is guiding for a revenue increase of 19% to 21% and adjusted earnings-per-share growth of 15% to 17% in the current quarter.

Further out on the horizon, Tenebruso cites management guidance of growing revenues from $67 billion in fiscal 2026 to $90 billion in fiscal 2027. In other words, the investor emphasizes that there’s “plenty of room for expansion.”

“The database leader is expanding its cloud business at a rapid pace,” states Tenebruso. (To watch Joe Tenebruso’s track record, click here)

Oracle is a very popular name among Wall Street analysts. With 28 Buys and 4 Holds, ORCL enjoys a Strong Buy consensus rating. Its 12-month average price target of $256.23 implies gains of close to 60% in the year ahead. (See ORCL stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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