Oracle's Power and Banking Play Sparks a 25% Two-Day Surge

Oracle stock rallies 25% in two days, fueled by a major energy deal with Bloom Energy and a new AI platform targeting corporate banking, backed by surging cloud revenue.

Oracle shares have staged a dramatic two-day rally, soaring roughly 25% and marking a sharp reversal for a stock that had lost over 45% in the preceding six months. This powerful rebound is fueled by a dual-pronged strategy addressing the critical bottlenecks for its artificial intelligence ambitions: securing massive energy capacity and aggressively targeting the lucrative banking sector.

The most immediate catalyst is a major expansion of the company's partnership with Bloom Energy. Oracle has secured access to up to 2.8 gigawatts of fuel cell capacity, with 1.2 GW already under contract and being installed at its US data centers. For a corporation that has taken on over $100 billion in debt to finance its AI infrastructure, guaranteeing a reliable, on-site power supply is now core operational strategy, not a side project. This move directly tackles the strain that extreme AI compute demands place on traditional power grids.

Financially, the deal has already paid an extra dividend. Oracle holds warrants for 3.53 million Bloom Energy shares at an exercise price of $113.28. Following Bloom's own 15% stock jump to around $203, that stake shows an unrealized gain of approximately $316 million.

Simultaneously, Oracle is launching a fresh offensive to monetize its AI capabilities. At a summit in London, its financial services division unveiled new AI agents designed for corporate banking. Targeting treasury, trade finance, and lending, the platform aims to automate manual processes and shorten decision cycles. Oracle plans to deploy hundreds of these specialized agents for data extraction, credit processing, and supply-chain finance within the next twelve months, embedding itself deeply in the long-term operations of some of the world's largest corporate clients.

This aggressive push is underpinned by substantial fundamental growth, distinguishing the rally from mere speculation. The company's remaining performance obligation, a measure of its contract backlog, exploded by 325% year-over-year in its fiscal 2026 third quarter to $553 billion. Total revenue climbed 22% to $17 billion, with cloud revenue up 44% to $9 billion. The growth engine, Oracle Cloud Infrastructure (OCI), saw sales skyrocket 84%.

Such expansion comes at a steep cost. Capital expenditures surged 209% in fiscal 2025 to a record $21.2 billion, funding the construction of five major data centers. This spending is viewed by analysts at Scotiabank as a necessary investment to fulfill a massive pipeline of AI infrastructure commitments, including major deals with firms like OpenAI.

The stock, trading at €138.56, remains deeply discounted, still more than 50% below its 52-week high of €280.70. Even after gaining about 12.6% over the past week, it is down roughly 17% for the year. Its valuation has moderated significantly, with a forward P/E of around 18 and an EV/EBITDA of approximately 17.5.

Leadership changes signal a focus on managing this capital-intensive transition. The appointment of new CFO Hilary Maxson, who brings experience from Schneider Electric in overseeing large-scale projects, has been noted by Wall Street as a move to steer financial resources toward the AI buildout. The next major test for Oracle's renewed narrative will come with the release of its fourth-quarter results, expected in June, where execution on its power and banking initiatives will be closely scrutinized.