Oracle Lands Key U.S. Government Cloud Deals as AI-Expansion Financing Questions Emerge

In the same week, Oracle also secured a major CMS project, relocating critical systems to OCI. The engagement covers more than 150 million Americans and leverages Oracle’s FedRAMP High-certified environment designed for sensitive federal data.

Even as order momentum looks solid, funding an aggressive AI push is drawing scrutiny. Market researchers at TD Cowen, per media reports, estimate Oracle could cut between 20,000 and 30,000 jobs worldwide to free up 8 to 10 billion dollars for expanding AI-focused data centers.

Oracle did not comment on specific headcount figures. What is clear is the company’s plan to raise between 45 and 50 billion dollars in 2026, a substantial portion of which would flow into infrastructure supporting its 300-billion-dollar partnership with OpenAI.

Should investors sell immediately? Or is it worth buying Oracle?

Views among analysts are split. DA Davidson upgraded Oracle to a Buy rating with a $180 price target, highlighting undervalued AI partnerships. By contrast, BMO Capital Markets and Citizens JMP lowered their targets, citing valuation risk and execution concerns.

The stock finished Thursday at $156.48, down 0.43%, well below its recent highs. Investors appear to be weighing the long-term potential of Oracle’s AI pipeline against the near-term costs associated with scaling the expansion.

Separately, a class-action case over alleged insufficient AI disclosures is nearing a deadline. The suit’s deadline is April 6, 2026, and the coming weeks will reveal whether the current order momentum can offset the financing challenges facing the company.