Where Will Oracle Be in 2 Years?

By Harsh Chauhan – Mar 20, 2026 at 10:15AM ESTKey PointsOracle is converting its massive backlog into revenue, which should accelerate growth in the next couple of years.The company's earnings growth potential and valuation suggest it is likely to deliver healthy gains for investors.Shares of Oracle (ORCL 3.04%) have retreated 48% in the past six months, driven by concerns that the company is spending way too much to build artificial intelligence (AI) infrastructure. Oracle's decision to take on debt to fund the infrastructure buildout, along with its reliance on AI start-up OpenAI for a significant chunk of its backlog, has weighed on its shares in recent months. However, on March 10, Oracle stock received a nice shot in the arm after the company announced solid results for its fiscal 2026's third quarter (ended Feb. 28). Let's see why that was the case, and if the stock could go on a bull run from here and make investors richer over the next couple of years. Image source: Getty Images. Oracle's smart infrastructure strategy is reaping rewards Oracle's cloud infrastructure business is growing at a terrific pace. The company has been signing massive contracts with customers looking to run AI workloads in the cloud, and its backlog now stands at $553 billion. Oracle posted a 325% year-over-year increase in its remaining performance obligations (RPO) last quarter, which was much faster than the 22% year-over-year increase in its revenue to $17.2 billion. ExpandNYSE: ORCLOracleToday's Change(-3.04%) $-4.73Current Price$150.79Key Data PointsMarket Cap$447BDay's Range$149.55 - $153.2552wk Range$118.86 - $345.72Volume454KAvg Vol27MGross Margin64.30%Dividend Yield1.29% Oracle now needs to convert its RPO, which is the total value of contracts yet to be fulfilled at the end of a quarter, into revenue by building more data centers. That's why the company intends to raise $50 billion in debt and equity funding this year. Importantly, Oracle has already raised $30 billion of its target by issuing convertible preferred stock and bonds. Of course, the funding is going to negatively impact the cash flow, as it will have to cover the interest on the debt it is issuing. But Oracle has a big enough backlog to justify its financing moves. Additionally, Oracle now has a bring-your-own hardware model and is taking upfront payments from customers to build AI infrastructure. This strategy has started bearing fruit for the company, as it signed $29 billion in contracts using this model last quarter. The model should allow Oracle to continue expanding its infrastructure while simultaneously reducing pressure on its cash flow. Additionally, Oracle's infrastructure expansion led to an 84% year-over-year increase in its cloud infrastructure revenue last quarter to $4.9 billion. The company can therefore substantially accelerate its revenue and earnings growth over the next two years, driven by the massive demand for AI compute and its smart strategy of building more data centers through customer-funded hardware and advance payments. How much upside can investors expect in the next two years? Oracle has guided for $67 billion in revenue in fiscal 2026 (which will end in May this year). It has increased its fiscal 2027 revenue guidance to $90 billion, which points toward a 34% increase over the current year. Even better, the company's aggressive expansion is likely to lead to a bigger jump in fiscal 2028. ORCL Revenue Estimates for Current Fiscal Year data by YCharts Importantly, Oracle's bottom-line growth is also anticipated to accelerate. ORCL EPS Estimates for Current Fiscal Year data by YCharts That won't be surprising, considering Oracle's smart infrastructure buildout strategy. Assuming Oracle's earnings reach $10.73 per share in fiscal 2028 and it trades at 24.5 times earnings at that time (in line with the tech-focused Nasdaq-100 index's forward earnings multiple), its stock price could jump nearly 68% from current levels to $263. All this makes Oracle a top AI stock to buy right now, especially considering that it trades at just 19 times forward earnings.Read NextMar 20, 2026 •By Harsh ChauhanMassive News: Oracle's $553 Billion Backlog Could Make It the Most Important AI Stock of 2026, But Is It Too Late to Buy?Mar 19, 2026 •By Will Healy2 Beaten-Down Tech Stocks Coiled for a Massive ReboundMar 18, 2026 •By Daniel FoelberOracle Agrees That AI Is Challenging the SaaS Model. Here's Why Oracle Thinks It's the Disruptor, Not the Disrupted.Mar 18, 2026 •By Adria CiminoDown 20%, Is Oracle a No-Brainer AI Buy?Mar 18, 2026 •By Daniel FoelberOracle Isn't Done Spending Big on AI. Here's Why It Said Investors Shouldn't Worry.Mar 18, 2026 •By Daniel FoelberOracle's "Halo Effect" Is the Real Deal. But is the AI Growth Stock a Buy in March?About the AuthorHarsh Chauhan is a contributing Motley Fool technology analyst covering semiconductors, consumer electronics, artificial intelligence, and software. Harsh previously worked as a journalist for CCN Markets covering crypto and macroeconomics, a contributor at Capital 10x covering metals, mining, and industrial stocks, and a research associate at Zacks Investment Research. He holds a bachelor’s degree in commerce from St. Xavier’s College in Kolkata, India.TMFTechJunk13X@techjunk13Stocks MentionedOracleNYSE: ORCL$150.57(-3.18%)-$4.95*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.