Is Oracle’s new Fusion Agentic app quietly reshaping the AI ​​story for ORCL’s core cloud stack?

• In recent days, Oracle has announced widespread deployment of Fusion Agentic Applications across finance, supply chain, human resources, and customer experience, along with expanded collaborations including AI databases, financial crime platform upgrades, and Celonis on Oracle Cloud Infrastructure.
• These releases further deepen Oracle’s commitment to applied enterprise AI by embedding tuned decision agents directly into the Fusion Cloud stack and positioning databases and compliance tools as the unified AI execution backbone.
• Here, we consider how this new wave of Fusion Agentic Applications and AI-enhanced platforms could reshape Oracle’s investment story.

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Oracle Investment Story Summary

I think to own Oracle today you have to believe that its massive AI and cloud backlog will lead to profitable growth despite heavy data center spending and mounting debt. While the latest Fusion Agentic Applications and AI database upgrades support the core theory of AI, they do little to alleviate immediate concerns about the implementation risks of the planned USD 45-50 billion financing and reliance on concentrated AI customers.

Among the recent updates, the expansion of Celonis collaboration feels particularly relevant. By bringing Celonis’ process intelligence to OCI and tying it to Fusion, Oracle is making these large AI infrastructure contracts more “sticky” through tangible process automation in finance and supply chain. Deeper, usage-driven partnerships like this could be at least as important as the headline GPU deals for the current catalyst to turn remaining performance obligations into revenue.

But while these AI wins are encouraging, investors should pay close attention to how much balance sheet strain Michigan’s buildup and extensive AI data center pipeline could cause…

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The Oracle story projects sales of $99.5 billion and profits of $25.3 billion by 2028. This assumes annual sales growth of 20.1% and profits roughly doubling from the current $12.4 billion.

We reveal how Oracle’s projections create a fair value of $255.31, an 85% increase over the current price.

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Some of the most optimistic analysts expected Oracle to reach around US$170 billion in sales and US$39 billion in revenue by 2029, but weighing that against the underutilization of AI data centers and the risk of slowing down legacy software highlights just how divergent the views are, and why this week’s Agent AI announcement and funding news could ultimately change those expectations.

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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

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