Oracle's Cloud Growth Surges on AI Demand, Propelling Stock to Record Highs

Oracle Projects Strong Annual Cloud Growth, Boosting Momentum

Oracle Corp. projected cloud infrastructure sales will jump more than 70% in the fiscal year that began this month, boosting investor enthusiasm for the closely watched business. Oracle, long known for its database software, has been gaining in its effort to become a major player in the business of renting out computing power and storage by targeting clients focused on artificial intelligence work. Earlier this year, it announced a joint venture -- dubbed Stargate -- to provide OpenAI with massive sums of computing power. It has also inked customers for the cloud business, including Elon Musk's xAI and Meta Platforms Inc.

Oracle's $116 Billion Surge Leaves Little Room for Error on AI

Oracle Corp. investors find themselves at a pivotal crossroads. Either heed the warning from a growing list of indicators that suggest the stock has run up too far, too fast -- or continue to chase another rally that's been supercharged by lofty artificial intelligence expectations. Shares of the software maker have soared 75% from April's low, including their best two-day gain since 2001 after its earnings report last week showed AI-fueled revenue growth is gaining steam. However, that's left the stock trading at it most overbought level in 25 years and at its steepest valuation in more than two decades. And there are signs investors may already be balking.

Oracle beats quarterly revenue estimates

June 11 (Reuters) - Oracle (ORCL.N), opens new tab surpassed fourth-quarter revenue estimates on Wednesday, boosted by growing demand for its cloud offerings from companies deploying artificial intelligence. The company's growth is largely nurtured by its Oracle Cloud Infrastructure (OCI) solution and support for AI workloads. Analysts see the company becoming more of a cloud service provider that relies less on software growth. "We expect our total cloud growth rate -- applications plus infrastructure -- will increase from 24% in fiscal year 2025 to over 40% in fiscal year 2026," said CEO Safra Catz. Oracle has also been introducing AI assistants, advisers and agents. Its AI Agent Studio, announced in March, is designed to help customers and partners build their own customized AI agents. Revenue for the quarter stood at $15.90 billion, compared with the analysts' average estimate of $15.59 billion, according to data compiled by LSEG. Reporting by Juby Babu in Mexico City; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

Oracle shares soar as AI cloud demand propels revenue forecast

June 11 (Reuters) - Oracle (ORCL.N), opens new tab shares surged nearly 8% in premarket trading on Thursday after the company raised its annual revenue forecast, driven by strong demand for its AI-related cloud services. The stock has risen nearly 6% so far this year as confidence in the software sector remained strong despite geopolitical tensions, even as analysts warn that U.S. President Donald Trump's tariffs could undermine Big Tech's AI investments. Earlier this year, Oracle, whose cloud offerings help companies build their AI infrastructure, announced a joint venture called Stargate to deliver large-scale computing capabilities to OpenAI. "Oracle's once-stodgy image levels up to 'cloud-native mage,' and the competitive map now looks less like a classic three-player real time strategy and more like a battle-royale with everyone dropping in, looking for compute loot", said Michael Ashley Schulman, partner at Running Point Capital Advisors. Oracle expects total revenue to be at least $67 billion for fiscal 2026, CEO Safra Catz said on a post-earnings call. The Texas-based company's cloud services quarterly revenue rose 14% to $11.70 billion. Its overall revenue of $15.90 billion beat estimates of $15.59 billion. At least nine brokerages have raised their price target post-earnings. Oracle trades at a forward price-to-earnings ratio of 25.86, compared to rivals Microsoft at 31.34 and Amazon at 31.80, according to data compiled by LSEG. Microsoft's (MSFT.O), opens new tab stock has gained 12.16%, while Amazon's (AMZN.O), opens new tab has decreased by 2.8% so far this year. "ORCL has entered an entirely new wave of enterprise popularity that it has not seen since the Internet era in the late 90s," analysts at Piper Sandler added. Reporting by Rashika Singh in Bengaluru; Editing by Tasim Zahid Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Business

Oracle shares pop 15% to record high on earnings beat, cloud optimism

Larry Ellison, Oracle's co-founder, chief technology officer and chairman, at right, and U.S. President Donald Trump share a laugh as Ellison uses a stool to stand on as he speaks during a news conference in the Roosevelt Room of the White House in Washington on Jan. 21, 2025. Trump announced an investment in artificial intelligence (AI) infrastructure and took questions on a range of topics including his presidential pardons of Jan. 6 defendants, the war in Ukraine, cryptocurrencies and other topics. Oracle shares soared 15% on Thursday and headed for a record close and their best day since 2021, after the database software vendor issued robust earnings and a strong forecast, fueled by growth in cloud. Revenue climbed 11% year over year during the fiscal fourth quarter to $15.9 billion, topping the $15.59 billion average estimate, according to LSEG. Adjusted earnings per share of $1.70 exceeded the average analyst estimate of $1.64. "All told, ORCL has entered an entirely new wave of enterprise popularity that it has not seen since the Internet era in the late 90s," Piper Sandler analysts wrote in a note to clients. The firm was one of several to lift its price target on the stock, raising its prediction to $190 from $130. Oracle has been making headway in the cloud infrastructure market to challenge Amazon, Google and Microsoft. It's still small by comparison, with $3 billion in cloud revenue during the May quarter, compared with over $12 billion for Google, which counts productivity software subscriptions and cloud infrastructure sales when reporting cloud metrics. But Oracle's business is growing faster. Future expansion can also come from sales of Oracle's database on clouds other than its own. "The growth rate in multi-cloud is astonishing," Oracle Chairman Larry Ellison said on Wednesday's conference call with analysts. "In other words, our database is now moving very rapidly to the cloud, I think because - a few reasons, because the database has now all these AI capabilities, but also, quite frankly, now people can get it in whatever cloud they want." Remaining performance obligations, a measurement of money that's expected to be recognized as revenue in the future, sat at $138 billion, up 41% from a year earlier. Oracle CEO Safra Catz said RPO will likely more than double in the 2026 fiscal year, which ends in May 2026. Revenue for the new fiscal year should come in above $67 billion, she said. That's higher than LSEG's $65.18 billion consensus. Gains from OpenAI's Stargate artificial intelligence data center project, targeting $500 billion in investments over four years, are not yet included in forecasts. "If Stargate turns out to be, everything is advertised, then we've understated our RPO growth," Ellison said. For fiscal 2029, revenue should be above the $104 billion target the company set in September, Catz said. Still, the company faces the challenge of meeting client demand in cloud. "Demand continues to dramatically outstrip supply," Catz said, though she added that the company isn't having trouble sourcing Nvidia graphics processing units. Analysts at RBC, who recommend holding the stock, raised their price target to $195 to $145. But they noted that, "with the backdrop of continued capacity constraints, we struggle to see a path to meaningful acceleration in the near term."

Oracle's stock on pace for best week since 2001 on cloud momentum

Oracle CEO Safra Catz speaks at the FII PRIORITY Summit in Miami Beach, Florida, on Feb. 20, 2025. Oracle shares are on pace for their best week since 2001 as Wall Street cheers a strong earnings report and bullish comments on the company's prospects in cloud computing. The stock is up about 24% for the week, with almost all the gains coming in the two trading days after the company's quarterly earnings release. The last time Oracle had a better week was in April 2001, in the midst of the dot-com crash, when so-called dead-cat bounces were common. The prior quarter Oracle shares lost almost half their value. It's a much different company today, and while Oracle was generally viewed as a late entrant into the cloud infrastructure market, the company has found a niche and is seeing rapid growth helping clients operate artificial intelligence models. "Oracle is in the enviable position of having more demand than it can fulfill," Joseph Bonner, an analyst at Argus Research, wrote in a note to clients on Friday. He recommends buying the shares and lifted his price target to $235 from $200. Oracle rose to a record on Friday, topping $215. In the company's earnings report late Wednesday, revenue and earnings topped estimates. CEO Safra Catz said sales for the new fiscal year should come in above $67 billion, higher than LSEG's $65.18 billion consensus. "The demand is astronomical," Larry Ellison, Oracle's chairman told analysts on the earnings call. "But we have to do this methodically. The reason demand continues to outstrip supply is we can only build these data centers, build these computers, so fast." Oracle has been playing catchup in cloud to rivals Amazon, Google and Microsoft. In the 2025 fiscal year, Oracle's capital expenditures exceeded $21 billion, which is more than the company spent from 2019 to 2024. The sum should reach $25 billion in fiscal 2026, Catz said on the call. "We will build and operate more cloud infrastructure data centers than all of our cloud infrastructure competitors combined," Ellison said. Oracle shares are up 28% so far in 2025, while the Nasdaq is roughly flat. Among the most highly valued U.S. tech companies, the next best performer for the year is Meta, which is up 17%.

Oracle beats expectations on 'insatiable' cloud demand, sending its stock higher - SiliconANGLE

Oracle beats expectations on 'insatiable' cloud demand, sending its stock higher Database giant Oracle Corp.'s stock was moving higher in extended trading today after reporting financial results that surpassed analyst's expectations and saying it expects cloud growth to accelerate in the current quarter. The company reported fourth-quarter earnings before certain costs such as stock compensation of $1.70 per share on revenue of $15.9 billion, up 11% from the year-ago period. The numbers were better-than-expected, with Wall Street looking for earnings of just $1.64 per share on sales of $15.59 billion. The strong numbers helped Oracle to boost its bottom line, with the company delivering a net profit of $3.43 billion overall, up from $3.14 billion it reported in net income a year earlier. For the current quarter, Oracle is looking for earnings of between $1.46 and $1.50 per share, with revenue growth forecast at between 12% and 14%, officials said. That compares to the analyst's forecast of $1.48 per share in earnings and $14.96 billion in revenue, which would represent growth of 12.4%. While that wasn't exactly a blowout forecast, Oracle Chief Executive Safra Catz (pictured) revealed that the company's cloud computing business has more exciting prospects. She said the company expects cloud infrastructure revenue to grow more than 70% in the new fiscal year, accelerating from its current growth rate of 52% in the previous quarter. As a result, Oracle is targeting $67 billion in fiscal 2026 revenue, ahead of the $65.18 billion analyst forecast. According to Catz, the company is also on track to surpass a $104 billion revenue target that it set last September for fiscal 2029. During the previous quarter, revenue from cloud services and license support rose to $11.7 billion, exceeding the Street's target of $11.59 billion, while cloud and on-premises license revenue came to $2.01 billion, beating the $1.82 billion consensus estimate. Valoir analyst Rebecca Wettemann told SiliconANGLE that Oracle's cloud revenue is growing fast due to a combination of its novel multicloud strategy and the growing number of Oracle enterprise application customers who are relying on the company's cloud infrastructure to power those workloads. "They are major drivers of success, and more customers are turning to Oracle's database to power their AI initiatives too," the analyst said. "Autonomous database revenue is soaring, and as the on-premises databases shift to OCI, or even to rivals like AWS, Azure or Google, Oracle is going to ride that wave of growth." On a conference call with analysts, Catz and Oracle Chairman and Chief Technology Officer Larry Ellison spent a lot of time talking about the progress the company made in the last quarter. They cited a new partnership with the United Arab Emirates' government-backed artificial intelligence company G42 and the non-profit Cleveland Clinic Foundation on a new AI platform for healthcare, plus new cloud and consulting agreements with IBM Corp. According to Ellison, the Chinese online retailer Temu, owned by PDD Holdings Ltd., has also agreed to shift a ton of workloads onto Oracle's cloud infrastructure. Oracle has also doubled-down on AI development, launching a new AI Agent Studio offering with the Oracle Fusion Cloud Application Suite, which offers enterprise resource planning , human capital management, and customer experience capabilities. Wettemann said she expects Oracle to see a lot of traction with this, because it's embedding these agentic AI capabilities across its product portfolio at no extra cost. "While some competitors have struggled to figure out AI pricing, Oracle's strategy to just seamlessly integrate generative AI into its cloud applications, without tacking on any extra fees, has broken down barriers to adoption and sparked more experimentation across the board," she said. "Although it will start charging for AI Agent-Studio-built agents that depend on other models, customers will still be able to do a lot with predictable pricing, unlike many of Oracle's competitors." Last month, the Financial Times reported that Oracle is planning to buy up to $40 billion worth of graphics processing units from Nvidia Corp. to equip a sprawling data center currently under construction in Abilene, Texas, as part of the Stargate project it announced earlier this year. Oracle has partnered with OpenAI, Softbank Group Corp. and Abu Dhabi-based MGX on the Stargate project, which expects to spend more than $500 billion on building data center infrastructure for AI over the next five years. Oracle declined to comment on the Financial Times' report at the time, but if that number is correct it would likely represent a big escalation in its spending. On the call, Catz told analysts that Oracle's capital expenditure for 2025 exceeded $21 billion, up from just under $7 billion in the previous year. It could be that Oracle splits the cost of the new GPUs with its partners, or spreads it over several years. But it seems unlikely that it will splash all of that cash at once. Catz told analysts that the company is currently forecasting capex of just over $25 billion in fiscal 2026. Ellison chimed in to say that "we are doing a bunch of things to lower our capex costs. But even if we do that, capex is going to go up because the demand right now seems almost insatiable. I mean, I don't know how to describe it, I've never seen anything remotely like this." Elaborating, Ellison explained that Oracle recently received an order from an unnamed customer to utilize all of its available cloud capacity. "We never got an order like that before," he said. "We had to move things around. We did the best we could to give them the capacity they needed." All of this was music to the ears of investors, and Oracle's stock is now up more than 5% in the year to date, exceeding the performance of the broader S&P 500, which is up just 2% for the year.

Oracle Surpasses Quarterly Estimates, Records 11% Rise in Revenue | AIM

The company announced fourth-quarter earnings of $1.70 per share, excluding certain expenses. Oracle surpassed Wall Street's expectations for its FY 2025 fourth-quarter performance on Wednesday. Within hours, increased demand for its cloud services from businesses integrating AI caused its stock to rise 7%. The company announced fourth-quarter earnings of $1.70 per share, excluding certain expenses like stock compensation. Revenue reached $15.9 billion, an 11% increase compared to the same period last year. These results exceeded expectations, as Wall Street had anticipated earnings of only $1.64 per share on revenues of $15.59 billion. In fiscal year 2025, total revenues grew 8% to $57.4 billion. Cloud services and license support revenues increased by 12% to $44.0 billion. Cloud and on-premise license revenues rose by 2% to $5.2 billion. "FY25 was a very good year, but we believe FY26 will be even better as our revenue growth rates will be dramatically higher. We expect our cloud growth rate -- applications plus infrastructure -- will increase from 24% in FY25 to over 40% in FY26. Cloud Infrastructure growth rate is expected to increase from 50% in FY25 to over 70% in FY26," Oracle CEO, Safra Catz, said. According to Oracle, in Q4 2024, total cloud revenue, including IaaS and SaaS, reached $6.7 billion -- a 27% increase. Cloud Infrastructure (IaaS) revenue was recorded at $3.0 billion, up 52%, while Cloud Applications (SaaS) generated $3.7 billion, a 12% rise. Fusion Cloud ERP (SaaS) revenue also reached $1.0 billion, growing by 22%, and NetSuite Cloud ERP brought in $1.0 billion, an 18% increase. Oracle has been launching AI assistants, advisors, and agents. Its AI Agent Studio, revealed in March, aims to assist customers and partners in creating their personalised AI agents. "MultiCloud database revenue from Amazon, Google and Azure grew 115% from Q3 to Q4. We currently have 23 MultiCloud data centres live, with 47 more being built over the next 12 months. We expect triple-digit Multicloud revenue growth to continue in FY26," Oracle chairman and CTO, Larry Ellison, said. After forming partnerships with Microsoft Azure and Google Cloud, the company joined forces with AWS in early 2024 to introduce Oracle Database@AWS. AIMreported that this offering will enable customers to utilise Oracle Autonomous Database and Exadata Database Service in AWS data centres.

'We'll take whatever you can give us!' - "insatiable" demand drives Oracle to a strong year end and a bullish outlook for accelerated growth

"Insatiable" cloud demand drove Oracle to a strong year-end with full-year revenues and profits up and a prediction from CEO Safra Catz that there's more acceleration to come in fiscal '26. For Q4 '25, total revenues were up 11% year-on-year to $15.9 billion, with cloud revenue - IaaS and SaaS - up 27% for the same period to $6.7 billion. Net income for the quarter was $3.4 billion. For full year '25, total revenues came in at $57.4 billion, up eight percent year-on-year, while net income was $12.4 billion. From CEO Safra Catz, the message for the new fiscal year is more of the same and more of it, raising guidance to $67 billion for the year: A few years ago, I told you that we've reached a tipping point in our cloud transition and expected revenue growth to accelerate, and it has. In Q4, we hit double-digit revenue growth, and it's only going up from here, even as the company gets bigger...With the addition of over 100 AI agents, along with strong bookings and higher renewal rates for our strategic SaaS products, I expect the cloud applications growth rate will accelerate this coming year. As for the infrastructure business, she said: OCI (Oracle Cloud Infrastructure) has seen exceptional demand for infrastructure services and those contracted non-cancellable bookings in RPO give us confidence that OCI revenue will grow over 70% this current year. For CTO Larry Ellison, the future is bright and based around three simple predictions: Oracle will be the #1 cloud database company. Oracle will be the #1 cloud applications company, and Oracle will be the #1 builder and operator of cloud infrastructure data centers. And there's more: No other company is even attempting to build the depth and breadth of AI-based applications that we have already built. Oracle will build more cloud infrastructure data centers than all of our infrastructure competitors combined. In the agentic era, Oracle's origins as a database and data management company will serve it well, Ellison argued: Other companies say they have all the data, so they can do AI really well, they can build all these AI agents on top of all of that data. The only problem with that statement is they don't have all the data we do. We have most of the world's valuable data. The vast majority of it is in an Oracle database. And the latest version of the Oracle database is an AI-centric piece of technology, a vector database called Oracle 23 AI. It's the key enabler for companies to use AI. Customers want to be able to use AI models on top of their own data, he added: This is our value proposition. Our database takes all of your data, our applications take all of your application data, and make that data available to the most popular AI models. Like if you use ChatGPT, if you use Grok, you use that in the Oracle Cloud. We are the key enabler for enterprises to use their own data and AI models. No-one else is doing that. And Oracle's multi-cloud platform approach, through partnerships with Microsoft, Google and Amazon Web Services, is paying off, he argued: If you're dedicated to using Microsoft Azure, you can get the Oracle database and Microsoft Azure. The fully-capable Oracle database in Microsoft Azure with all of our fanciest features, including the new AI features. You can get it at Google, you can get it in Amazon, you can get it at the Oracle Cloud. It's all the same in every place. That's given our customers a lot of comfort that Oracle is not only where they store all of their current data, but they want to keep using the Oracle database and expand their use of the Oracle database and move all of that data to the cloud as quickly as they can, and they're now able to do it at the place of the cloud that they're choosing. The one problem Oracle still has, said Catz, is too much demand: I am still in a position where our supply is not meeting our demand. We actually currently are still waving off customers or scheduling them out into the future so that we have enough supply to meet demand. This is a situation that we have not seen in our history. Ellison expanded on the point, citing a recent order that was basically 'we'll take all the capacity you have wherever it is'. He explained: We never got an order like that before. We had to move things around. We did the best we could to give them the capacity they needed. The demand is astronomical. But we have to do this methodically. The reason demand continues to outstrip supply is we can only build these data centers, build these computers so fast. One development from recent months that has not been factored into growth predictions is the potential impact of Oracle's participation in the Trump 2.0 Stargate initiative alongside OpenAI and Softbank among others. Catz noted that the reality at present is that Stargate is still in formation: Stargate is not formed yet, but some of our business with OpenAI, which is one of our partners in Stargate is part of our future very much so. But you understand, we work with OpenAI. Those are still small numbers in the scheme of everything else we're doing, but it will ultimately be bigger. Ellison added: If Stargate turns out to be everything as advertised, then we've understated our RPO (Remaining Performance Obligation) growth. Demand right now seems almost insatiable. A problem for Oracle, but a good one to have. A very strong year end for the company and bullish confidence about the future that comes as a breath of fresh air amid a lot of the understandable caution coming from other quarters given the ongoing uncertainties in the macro-economic climate. For Ellison and Catz, there was a clear undertone of 'we told you so' coming through in the post-earnings analyst call last night, which given the jitters that Wall Street short-termists showed during the period of transition to the cloud era that Oracle had to navigate is frankly entirely justified.

Oracle shares soar as AI cloud demand propels revenue forecast

Oracle shares jumped nearly 8% after raising its annual revenue forecast, driven by strong demand for AI-powered cloud services. With fiscal 2026 revenue expected at $67 billion, the company's transformation has boosted investor confidence, prompting multiple brokerages to raise their price targets.Oracle shares surged nearly 8% in premarket trading on Thursday after the company raised its annual revenue forecast, driven by strong demand for its AI-related cloud services. The stock has risen nearly 6% so far this year as confidence in the software sector remained strong despite geopolitical tensions, even as analysts warn that U.S. President Donald Trump's tariffs could undermine Big Tech's AI investments. Earlier this year, Oracle, whose cloud offerings help companies build their AI infrastructure, announced a joint venture called Stargate to deliver large-scale computing capabilities to OpenAI. "Oracle's once-stodgy image levels up to 'cloud-native mage,' and the competitive map now looks less like a classic three-player real time strategy and more like a battle-royale with everyone dropping in, looking for compute loot", said Michael Ashley Schulman, partner at Running Point Capital Advisors. Oracle expects total revenue to be at least $67 billion for fiscal 2026, CEO Safra Catz said on a post-earnings call. The Texas-based company's cloud services quarterly revenue rose 14% to $11.70 billion. Its overall revenue of $15.90 billion beat estimates of $15.59 billion.At least nine brokerages have raised their price target post-earnings. Oracle trades at a forward price-to-earnings ratio of 25.86, compared to rivals Microsoft at 31.34 and Amazon at 31.80, according to data compiled by LSEG. Microsoft's stock has gained 12.16%, while Amazon's has decreased by 2.8% so far this year. "ORCL has entered an entirely new wave of enterprise popularity that it has not seen since the Internet era in the late 90s," analysts at Piper Sandler added.

Oracle's AI Ambitions Take Flight After Record Cloud Growth - Oracle (NYSE:ORCL)

Oracle Corp ORCL stock gained on Thursday after the company reported better-than-expected fourth-quarter financial results and issued an upbeat outlook commentary on Wednesday. Oracle reported fourth-quarter revenue of $15.9 billion, up 11% compared to estimates of $15.58 billion, and adjusted earnings of $1.70 compared to estimates of $1.64. Oracle guided for total revenue of at least $67 billion in fiscal 2026. Also Read: AMD Powers Oracle Cloud With New Epyc Chips Promising Major Boost In Performance Cloud infrastructure revenue increased 52% year-over-year, and Oracle Cloud Infrastructure (OCI) consumption revenue grew by 62% in the fourth quarter. What Analysts Are Saying Wall Street analysts rerated the stock and raised their stock price targets. Guggenheim analyst John Difucci reiterated Oracle with a Buy and a $220 price target. Citizens JMP analyst Patrick Walravens maintained Oracle with a Market Outperform and raised the price target from $205 to $240. JPMorgan analyst Mark Murphy reiterated Oracle with a Neutral and raised the price target from $135 to $185. Keybanc Capital Markets analyst Jackson Ader maintained Oracle with an Overweight and raised the price target from $200 to $225. WestPark Capital analyst Curtis Shauger reiterated Oracle with a Buy and raised the price target from $195 to $246. Piper Sandler analyst Brent Bracelin maintained Oracle with a Neutral rating and raised the price target from $130 to $190. RBC Capital Markets analyst Rishi Jaluria reiterated Oracle with a Sector Perform rating and raised the price target to $195 from $145. Guggenheim: Oracle reported strong fourth-quarter results across the board, including accelerating IaaS growth for the year at 51%. Even more impressive was guidance, as it's benefiting from demand from all directions, Difucci said. The analyst said that the primary drivers of IaaS today are AI Training and traditional Cloud workloads. Difucci expects AI inferencing and database migrations to become more meaningful over the next year. Capex of $9.1 billion significantly exceeded the consensus number of $3.9 billion, yielding FCF that is just negative for the year. Management said they expect fiscal 2026 capex of $25 billion (which is above Difucci's $23.0 billion and the Street's $19.9 billion) to fuel the top-line growth, the analyst said. Oracle stock might meander at times, but the trend here is up, as per the analyst, who noted this will be a multi-year Best Idea. Difucci expects first-quarter revenue of $14.9 billion (prior $15.0 billion) and EPS of $1.46 (prior $1.48). Citizens JMP: While Oracle's data center buildout is not cheap -- with $9 billion in capex this quarter (Citizens estimates $4 billion) and more than $25 billion expected in fiscal 2026 -- Walravens continues to view the stock as an attractive opportunity for capital appreciation. His positive outlook is backed by strong bookings growth driving RPO and revenue, the evolution of Oracle Cloud Infrastructure (OCI) into a strategic cloud provider, a large total addressable market of approximately $745 billion ($265 billion from applications and $480 billion from infrastructure), and the long-term leadership of Chairman and CTO Larry Ellison and CEO Safra Catz. Walravens expects first-quarter revenue of $15.0 billion and EPS of $1.50. JPMorgan: Murphy's preview of Oracle's fourth-quarter earnings results emphasized the positive tone across his recent data points on AI demand. The analyst reiterated that Oracle is an essential player in the AI market and specifically alluded to the possibility that Oracle might be positioned to achieve its quarterly total revenue growth guidance, representing a trend change from prior results. He also expressed that Oracle's premium valuation logically embeds expectations of a sustainable revenue growth trajectory appreciably higher than Oracle's current reporting. Ironically, RPO sheds light on what some investors might have been expecting. Still, the analyst said comments on fiscal 2026 are bullish on aspects related to demand, RPO and revenue growth. Overall, he continues to respect Oracle's achievements in the AI arena while remaining mindful of valuation. Murphy expects first-quarter revenue of $15.1 billion and EPS of $1.48. Keybanc Capital Markets: Oracle sees demand that is hard for Ader to see, and it is spending to catch up. Capex of $9.1 billion came in way ahead of even the analyst's above-consensus estimate of $4.3 billion entering the quarter, and he now expects over $25 billion in capex next year. Ader said he had flagged this coming out of the KBCM Industrial Conference a few weeks back. Ader expects first-quarter revenue of $14.98 billion (prior $15.06 billion) and EPS of $1.47. WestPark Capital: Oracle's fourth-quarter performance showcased robust growth, particularly in its Cloud Infrastructure (IaaS) and Cloud Application (SaaS) segments, with results surpassing Wall Street's consensus estimates, Shauger said. Given the clear momentum in Oracle's business, the analyst raised his first-quarter revenue and EPS estimates from $15 billion and $1.49 to $15.1 billion and $1.51, above consensus estimates of $15 billion and $1.48, respectively. With Oracle's cloud migration driving a multi-year acceleration, Shauger noted Oracle's shares could rerate even further. Piper Sandler: The caution flags Bracelin raised in April on the risk that capex might consume most or all of the fiscal 2026 operating cash flows were premature and overshadowed by a surprisingly strong RPO backlog that could double to $276 billion in fiscal 2026 (versus $138 billion in fiscal 2025), as per the analyst, driven by broad-based adoption of Oracle cloud database, applications, and AI infrastructure services. He noted that Oracle has entered an entirely new wave of enterprise popularity that it has not seen since the Internet era in the late 1990s. The price target boost reflects increasing visibility into the growth potential. Increasing capital intensity risks that could widen the net debt position and pressure margins in the short run kept Bracelin at Neutral, assuming these risks elevate volatility and temper multiple expansion. Bracelin expects first-quarter revenue of $15 billion and EPS of $1.48. RBC Capital Markets: Oracle reported a solid quarter and posted solid RPO growth, leading shares up ~8% after market close, Jaluria noted. Total revenue came in above consensus and guidance, with Cloud revenue topping the guidance range. Capex came in higher than expected in the quarter on the back of continued demand for capacity, the analyst said. While the quarter was a step in the right direction, with continued capacity constraints, he struggled to see a path to meaningful acceleration in the near term. Jaluria expects first-quarter revenue of $14.98 billion (prior $14.81 billion) and EPS of $1.48 (prior $1.45). ORCL Price Action: Oracle stock is up 13.03% at $199.57 at publication on Thursday. Read Next: Tech Titans Unite For Stargate UAE In AI Venture Photo: Rokas Tenys via Shutterstock ORCLOracle Corp$199.1612.9%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. 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Oracle Q4 Earnings: Ellison Criticizes Salesforce Over Product Integration

Customers 'will sometimes pick our front office applications over Salesforce,' Oracle CTO Larry Ellison says. Larry Ellison, Oracle co-founder and chief technology officer, criticized the company led by his one-time employee Marc Benioff as offering products that aren't as well integrated as those from Ellison's own company during Oracle's latest quarterly earnings call. Ellison's comments were notable in part because Benioff himself has frequently compared Salesforce's AI capabilities against Microsoft, sometimes asserting that the Salesforce platform's level of integration leads to better AI-powered results compared to that Microsoft's Copilot and other AI products can produce. Salesforce analysts-and solution providers in past interviews with CRN-have sometimes criticized the vendor for slower integration of newly acquired companies. Customers "will sometimes pick our front office applications over Salesforce as a result of" the integration among Oracle enterprise resource planning (ERP), supply chain, human capital and other products, Oracle's Ellison said on Wednesday's call. Oracle executives reported the vendor's earnings for the last quarter of its 2025 fiscal year, which ended May 31 "Our customer engagement applications are getting better and better," Ellison said. "Everything is in the same database. Everything comes with the same AI data platform with it. All the analytics are there. Everything is there. You don't have to do the system integration. You don't have to buy a bunch of pieces and make them work together." [RELATED: Digital Services Firm Argano Expands Planning, Forecast, Automation Services With Anavate Buy] Oracle's NetSuite division is part of CRN's 2025 Partner Program Guide. Benioff left a 13-year tenure at Oracle in 1999 to co-found Salesforce. CRN has reached out to Salesforce for comment. In May, Benioff defended his pending purchase of data management vendor Informatica as a way to "harmonize or activate all the data across the entire enterprise" and deliver the best AI results through agents, data, apps and metadata. "Every company does say that they have agents, but without these four parts ... you're just not really able to deliver this complete experience for the enterprise, including delivering digital labor," Benioff said. On Wednesday, Oracle became the latest technology giant to report no hindrance to customer AI demand despite economic uncertainty as countries negotiate global tariffs, with company executives raising the revenue it expects this fiscal year by $1 billion and seeing increased demand for cloud products by customers who want to take advantage of AI and AI agents. Safra Catz, CEO of the Austin, Texas-based database products and cloud vendor, said on Wednesday's quarterly earnings call that using cloud ERP products such as Oracle's NetSuite and Fusion instead of on-premises products is the only way to fully unlock AI capabilities. "Many customers are still on on-premise ERP products," said Catz. "Those can't really use the advanced agentic and AI capabilities." Ellison added that the AI era should push customers to consolidate technology vendors, a benefit to Oracle and its apps that work together spanning supply chain, ERP, customer engagement and other use cases. "Companies don't really enjoy buying applications from five different vendors and then making all of those applications work together," Ellison said. Ellison appeared to continue attacking Salesforce's assertion as a premiere AI vendor because of the enterprise customer data its products house for customers-although Ellison didn't mention Salesforce by name. "These other companies say they have all the data, so they can do AI really well," Ellison said. "They can build all these AI agents on top of all of that data. The only problem with that statement is they don't have all the data. We do. We have most of the world's valuable data. The vast majority of it is in an Oracle database." Oracle's latest database version is "AI centric" with data vectorized and searchable, Ellison said. Data inside Oracle applications can leverage leading AI models for insights that incorporate company data. And enterprises will trust Oracle databases that are highly scalable, secure and reliable 24 hours a day. "We are the key enabler for enterprises to use their own data and AI models," he said. "No one else is doing that. ... This is not a small point. This is why our database business is going to grow dramatically." Ellison told analysts that Oracle's business has seen large non-AI contracts as well, including one with Temu that moves the China-based online marketplace's infrastructure to Oracle Cloud. Oracle has also seen "astonishing" growth in multi-cloud sales, the CTO said. Multi-cloud database revenue from Oracle's partnerships with Amazon, Google and Microsoft more than doubled from the third fiscal quarter to the fourth, according to the vendor. About 20 multi-cloud data centers are live with 47 being built over the next 12 months. The vendor has about 30 Oracle Cloud@Customer data centers live. Another 30 should be built in the current fiscal year. Oracle Cloud Infrastructure (OCI) consumption revenue grew 62 percent in the fourth fiscal quarter. Oracle predicts triple-digit multi-cloud revenue growth to continue in fiscal year 2026. "That's given our customers a lot of comfort that Oracle is not only where they store all of their current data, but they want to keep using the Oracle database and expand their use of the Oracle database and move all of that and move all of that data to the cloud as quickly as they can," he said. "They're now able to do it (in) the cloud of their choosing." High demand was a contributor to Oracle's higher-than-expected capital expenditures. The vendor reported $21.2 billion in CapEx for the fiscal year and $9.1 billion in the fourth fiscal quarter. Catz said to expect more than $25 billion in CapEx in fiscal year 2026. Catz stressed that most of that CapEx is for equipment that generates revenue, not land or building. "We don't build unless we've got orders for our capacity to be built out," she said. Ellison added that Oracle is making "large engineering investments" to speed up networking and lower the cost of networking. The vendor is not having trouble getting graphics processing units (GPUs). Oracle CEO Safra Catz stressed to analysts on the call that the $500 billion Stargate AI infrastructure partnership by Oracle, Microsoft-backed OpenAI and investment giant SoftBank "is still in formation." But Oracle is still seeing plenty of business, with its data center supply still not meeting the high volume of customer demand. "We are the destination for everyone who wants AI workloads, who want database workloads and want applications," Catz said. "We have so much in pipeline right now." Ellison added that if "Stargate turns out to be everything is advertised, then we've understated our RPO growth." For now, Oracle expects its remaining performance obligations (RPO) to more than double year over year in fiscal year 2026. The vendor reported $138 billion in RPO, up 41 percent year over year. Its total revenue for the fourth fiscal quarter was $15.9 billion, up 11 percent year over year. Cloud services and license support revenue totaled $11.7 billion, up 14 percent year over year. Cloud license and on-premises license revenues reached $2 billion for the quarter, up 8 percent year over year ignoring foreign exchange. Catz said that license revenue growth means that customers "want to use the bring-your-own-license pricing to go to the cloud." Cloud revenue was $6.7 billion, up 27 percent year over year. Cloud infrastructure contributed $3 billion, up 52 percent year over year. The rest was in cloud application revenue, up 12 percent year over year. Oracle's Fusion Cloud ERP offer brought in $1 billion during the quarter, up 22 percent. NetSuite Cloud ERP brought in $1 billion, up 18 percent year over year. Oracle reported operating income of $5.1 billion using Generally Accepted Accounting Principles (GAAP). Net income was $3.4 billion. As for the fiscal year, Oracle reported total revenue of $57.4 billion, up 8 percent year over year. Cloud services and license support revenues totaled $44 billion, up 12 percent year over year. Cloud license and on-premises license revenues were $5.2 billion, up 3 percent year over year ignoring foreign exchange. Oracle brought in $17.7 billion in GAAP operating income for fiscal year 2025. Net income was $12.4 billion. The vendor predicts total cloud growth rate-which includes cloud apps and infrastructure-to grow from 24 percent in the fiscal year that just ended to 40-plus percent in fiscal year 2026. Catz raised Oracle's fiscal year 2026 revenue guidance by more than $1 billion, now expecting more than $67 billion, up 16 percent year over year. Cloud infrastructure growth rate should go from 50 percent in fiscal year 2025 to 70-plus percent next fiscal year. For the first fiscal quarter, Oracle predicts total revenue growth between 11 percent and 13 percent ignoring foreign exchange. Total cloud revenue is expected to grow from 26 percent to 30 percent. Oracle's stock traded at about $189 a share after market close Wednesday, up about 7 percent.

Larry Ellison Says 'Most Of The World's Valuable Data' Is In Oracle As AI Demand Skyrockets - Oracle (NYSE:ORCL)

Enterprise cloud giant, Oracle Corp. ORCL, highlighted its strategic edge in the intensifying global AI race, something that allows it to successfully compete against the giants of this space. What Happened: During its fourth quarter earnings results on Wednesday, Oracle's Chairman, Larry Ellison, emphasized the company's competitive strength in its deep integration inside enterprise data architecture. "Most of the world's valuable data is stored in an Oracle database," Ellison said, pointing out that these systems are now being transitioned to public cloud platforms. "All of those databases are moving to the cloud, Oracle's cloud, Microsoft's Azure cloud, Amazon's cloud, or Google's cloud." The comment reinforces Oracle's positioning, not just as a cloud vendor, but as a foundational data layer for enterprise AI, regardless of where customers choose to host their infrastructure. See Also: Wikipedia Halts AI Summaries After Editors Warn Of 'Irreversible Harm' -- Say No 'Need To One-Up' With Google At the core of Oracle's AI strategy is its new flagship product, Oracle Database 23AI, which Ellison described as "an AI-centric piece of technology." The platform is built to integrate enterprise data directly with leading large language models (LLMs), such as ChatGPT and Grok. Ellison explained that Oracle's database and applications are designed to consolidate enterprise data and make it accessible to today's leading AI models. "Our database takes all of your data," he said, adding that customers can use models like ChatGPT or Grok "in the Oracle Cloud" to work with their own data securely and at scale. Underscoring the level of demand it is now seeing for its cloud infrastructure solutions, the company's CEO, Safra Catz's said that they are now turning customers away, or scheduling them into the future when they have "enough supply to meet demand." Ellison reiterated the same, saying that "the demand continues to outstrip supply," and that "he's never seen anything remotely like this." Today's Best Finance Deals Why It Matters: The company released its fourth quarter results on Wednesday, reporting $15.9 billion in revenue, compared to $14.29 billion a year ago, and ahead of consensus estimates at $15.58 billion. Oracle posted a profit of $1.70 per share, beating estimates at $1.64, driven by strong performance in its Oracle Cloud Infrastructure (OCI) business, with $3 billion in revenue, an increase of 52% year-over-year. "We expect OCI consumption revenue to grow even faster in FY26. OCI revenue growth rates are skyrocketing, so is demand," Ellison said. Price Action: Shares of Oracle were down 0.62% on Wednesday, trading at $176.38, but they popped 7.58% after hours following the company's fourth quarter results. According to Benzinga's Edge Stock Rankings, Oracle shares score high on Momentum, but lag on other metrics. They have a favorable price trend in the short, medium, and long term. Let's see how it compares with its peers and competitors in cloud computing and AI. Read More: Michael Saylor Shrugs Off Quantum Computing Threat To Bitcoin, Warns Companies Like Microsoft, Google More Vulnerable: 'You'll See It Coming A Mile Away' Photo courtesy: drserg / Shutterstock.com ORCLOracle Corp$200.9113.9%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum84.22Growth31.56QualityNot AvailableValue14.91Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Oracle Earnings See Cloud Acceleration | The Motley Fool

Oracle's cloud infrastructure revenue rose by 52% year over year in the fourth quarter of fiscal 2025 to $3.0 billion, and the company sees even stronger growth ahead. Oracle expects cloud infrastructure revenue to soar by more than 70% in fiscal 2026 as the company's data center investments pay off. Total cloud revenue growth, which includes applications as well, is expected to reach 40% in fiscal 2026, up from 24% in fiscal 2025. MultiCloud database revenue from third-party cloud providers more than doubled in the fourth quarter compared to the third quarter. Oracle has 23 MultiCloud datacenters operating today, with another 47 set to open over the next year. Oracle Cloud@Customer revenue grew by 104% year over year as clients opted to bring Oracle's cloud technology into their own data centers. The booming cloud business pushed total revenue up 11% year over year to $15.9 billion. Adjusted earnings per share rose by just 4% year over year, partly due to the costs associated with rapidly building out new data centers. Cloud services and license support expenses jumped 32% in the fourth quarter, quicker than overall cloud revenue growth. Share prices of Oracle were up about 7% in after-hours trading on Wednesday soon after the fourth-quarter report was released. Oracle beat analyst expectations on all fronts, and the company's upbeat forecast for accelerating cloud infrastructure growth was icing on the cake. Going into the report, Oracle stock was up about 6% year-to-date. Oracle's cloud infrastructure growth is partly being driven by the company's investments in artificial intelligence (AI) infrastructure. While Oracle's public cloud business struggled to take off in the pre-AI era, growth has accelerated dramatically as AI companies race to secure computing capacity. Oracle continues to build out new data centers at a rapid pace as demand soars, and as long as the AI boom doesn't peter out, the company's cloud infrastructure business should continue to thrive.

Oracle's Cloud Revenue Jumps 27% in Its Fiscal 2025 Q4 | The Motley Fool

Oracle (ORCL -0.62%) reported its fiscal 2025 fourth-quarter results on June 11, delivering quarterly revenue of $15.9 billion (up 11%) and annual revenue of $57.4 billion (up 9%), surpassing earlier guidance. It also raised its fiscal 2026 revenue target to over $67 billion, forecasting 16% growth. The company highlighted its cloud revenue, which grew by 27% to $6.7 billion in the quarter, and its remaining performance obligation (RPO) which rose 41% to $138 billion, It also expects over 70% growth in its cloud infrastructure (IaaS) segment. In the quarter, which ended May 31, Oracle's cloud infrastructure services reached an annualized revenue run rate of nearly $12 billion, yet its supply was insufficient to meet surging demand. In its efforts to build out its footprint to take advantage of that mismatch, it laid out $9.1 billion in capital expenditures, which resulted in negative free cash flow of $2.9 billion. The company projects that its capex will exceed $25 billion in fiscal 2026, up from $21.2 billion in fiscal 2025, with the "vast majority" of it dedicated to revenue-generating data center equipment. "[W]e are putting out as much capacity as we possibly can as quickly as we can. I do believe that the $25 billion next year may turn out to be understated. So it is all to meet demand. We don't order, we don't build, unless we've got orders for our capacity to be built out. And we have so much in orders right now that I actually expect, I believe I said on the call, over $25 billion this next quarter. And that is, again, to match demand." -- Safra Catz, Chief Executive Officer This aggressive and customer-commitment-driven capex deployment signals strong visibility into future contracted revenues, providing investors with a rare level of confidence in its long-term sales growth. However, it also introduces near-term margin pressures and execution risks if supply lags persist. Oracle's database business -- which company Chairman Lawrence Ellison says is responsible for storing "most of the world's valuable data" -- serves both as the foundation for customers' cloud migrations and as the AI data layer, enabling integration of proprietary enterprise data with large language models (LLMs) across every major public cloud. Autonomous database consumption revenue surged 47% on top of last year's 27% growth, while cloud database services reached $2.6 billion annualized. "Our database takes all of your data, our applications take all of your application data, and make that data available to the most popular AI models. If you like ChatGPT, you use ChatGPT. If you like Grok, you use Grok. You use that in the Oracle Cloud. We are the key enabler for enterprises to use their own data and models. No one else is doing that. That makes sense. ... This is not a small point. This is why our database business is going to grow dramatically." -- Lawrence Ellison, Chairman & Chief Technology Officer Oracle's ability to operationalize AI on enterprise data securely across multicloud environments differentiates its stack, positioning its high-margin database franchise to be a secular beneficiary of global AI adoption. Annualized revenue from strategic back-office SaaS (software-as-a-service) applications rose 20% to $9.3 billion in the quarter. Oracle continues to win market share by offering end-to-end vertically integrated product suites, eliminating the need for multivendor integration, and leveraging embedded data and analytics. "So we're seeing a lot of companies basically saying, 'I'm gonna go all Oracle. I'm gonna buy the complete Oracle suite for ERP, EPM, chain manufacturing.' ... [O]ur intent is to give some of our biggest customers a one-stop shop where they can buy the entire suite to run their enterprise from us. And that gets rid of a lot of headaches. Everything is in the same database. Everything comes with the same AI data platform with it. All the analytics are there. Everything is there. You don't have to do the system integration. That has been our strategy for some time, and that's all coming together. As a bunch of companies are not successfully navigating this admittedly difficult transition from on-premise to the cloud, we're picking up a lot of their users." -- Lawrence Ellison, Chairman & Chief Technology Officer By capturing customers transitioning from legacy on-premise solutions and consolidating disparate vendors, Oracle is expanding its long-term recurring revenue base. Management guided for fiscal 2026 revenue of at least $67 billion (up 16%), while RPO is projected to grow by more than 100%. Oracle also expects to surpass its previously stated revenue growth targets for fiscal 2027 and fiscal 2029, and promised to offer a more detailed long-range update at Oracle Cloud World in October.

Oracle's Larry Ellison Just Made a Bold Prediction. Should You Get in on the Stock Now? | The Motley Fool

Oracle (ORCL -2.17%) has long been a giant in database management, and that's helped the company steadily grow revenue over time. But over the past couple of years, Oracle has seen revenue truly take off thanks to the company's cloud infrastructure business. And what's driving this is demand from customers in the artificial intelligence (AI) space. In the most recent quarter, cloud infrastructure revenue soared 52% to $3 billion. The company, seeing unrelenting demand, expects growth to be even stronger in the new fiscal year. This message matches what other AI players have been saying in recent times. Nvidia spoke of enormous demand for its new Blackwell architecture and chip, and companies such as Meta Platforms and Alphabet reiterated big capital-spending plans to support their AI platforms. On top of this, analysts predict the general AI market will reach into the trillions of dollars in just a few years. So, it's not surprising that Oracle is benefiting from this momentum. And this growth story has been so solid in the past months that, during the company's recent earnings call, Chairman and Chief Technology Officer Larry Ellison made a very bold prediction. Does all of this make Oracle a buy now? Let's find out. First, though, let's take a look at Oracle's story so far. As mentioned, Oracle has been around for years -- 48 to be exact -- and gradually built its leadership in database management. Over time, though, the company expanded into various areas, and its big move was the launch of Oracle Cloud back in 2016. Customers like Oracle for the strength and security of its database management system and the flexibility of Oracle Cloud. For example, they can choose a multicloud option that allows them to deploy the Oracle database in any cloud, opt for Oracle Alloy to run their own cloud, or adopt a hybrid cloud offering suited to their workload needs. Today, as AI customers race to develop their platforms, Oracle's cloud applications and infrastructure growth are soaring. The company reported double-digit gains across the board -- from application to infrastructure and even specific platforms like Fusion Cloud ERP -- into the billions of dollars in the recent quarter. And remaining performance obligations (RPO) -- expected revenue from signed contracts -- soared 41% to $138 billion. RPO offers visibility on revenue ahead, so the recently reported numbers are reason to be optimistic. All of this has prompted Oracle to predict that even though the current fiscal year that just ended was very good, the next one will be even better. The total cloud-growth rate will increase from 24% in the latest fiscal year to more than 40% in the next, according to Oracle's forecasts. Now, let's move along to the even bolder prediction that Ellison made during the call: "Oracle will be the largest and most profitable cloud applications company in the world," Ellison said. He also predicts a win in the area of infrastructure, saying "Oracle will build more cloud infrastructure data centers than all of our infrastructure competitors combined." It's impossible to say whether these predictions will come true, but there is have some evidence that Oracle is on the right track to significantly benefit from AI demand. The company's latest database update known as Oracle 23 AI allows customers to immediately and securely use popular large language models (LLMs) with their own data. Ellison says it's the only system of its kind. This should help companies apply AI to their businesses with ease and drive more growth for Oracle. As for infrastructure, Ellison says demand is "astronomical," and a recent customer even asked for all available capacity regardless of its location. The AI infrastructure build-out is far from over, so this trend could continue. All of this sounds great, but is Oracle a buy right now? After all, the stock is trading at a record high after gains of 29% since the start of the year. It's important to take a look at valuation, and here we can see the stock trades for 31x forward earnings estimates. This is high compared to Oracle's past valuation, but we should keep in mind two things. First, the AI opportunity has broadened Oracle's revenue opportunities -- as we can see through recent revenue trends -- and this potentially supports the idea of a higher valuation. Second, Oracle's valuation today is in-line with, and even somewhat cheaper than others in the AI space. All of this means Oracle stock likely has room to run in the coming quarters and years. So, now, in the early days of this AI boom, it's a great idea to get in on this AI player that's already delivered a win and is well positioned to continue advancing over time.

Prediction: This Artificial Intelligence (AI) Stock Will Lead the Next Tech Bull Market | The Motley Fool

Nvidia's graphics processing units (GPUs) are considered the industry gold standard for generative AI hardware, and cloud hyperscalers and others in big tech just couldn't stop buying these pricey chipsets. While GPUs are still very much in demand, I think a new chapter is quietly unfolding within the broader AI storyline. Let's explore why the AI opportunity is more than just chips. From there, I'll go into detail about why I see Oracle (ORCL -1.02%) as a breakout candidate to lead the next bull market. When the AI revolution kicked off about two-and-a-half years ago, Nvidia was the default option when it came to purchasing GPUs. But over the last couple of years, competition has started to creep into the semiconductor market. Advanced Micro Devices is Nvidia's most direct rival in the AI data center market. However, all the cloud hyperscalers that I referenced above are also investing heavily into custom silicon in an effort to migrate from an AI architecture that's entirely built on Nvidia's backbone. In my view, GPUs aren't becoming less important by any means. However, with the introduction of so many new chips, I do think the semiconductor landscape is becoming commoditized. At this point, AI developers know that they need to keep buying chips. I think the bigger use case for these companies is becoming rooted in figuring out how to manage these GPU clusters amid ongoing AI infrastructure buildouts. This is where Oracle identified an opportunity early on, and the company's results are starting to show a clear pattern. On June 11, Oracle reported earnings results for its fiscal fourth quarter and full 2025 year (ended May 31). For the year, Oracle generated $57.4 billion in revenue -- an increase of 8% year over year. I understand that this growth rate pales in comparison to Nvidia and its "Magnificent Seven" peers. So, why am I so optimistic about Oracle? The answer lies deeper in the company's financial profile. Oracle's fastest-growing business is its infrastructure-as-a-service (IaaS), which essentially provides a cloud-based network to access high-performance GPU architectures inside data centers. This is a unique and savvy opportunity for Oracle, as it provides customers with an efficient and capex-light model to access GPUs for compute without having to invest time and money into constructing their own AI data center. During fiscal 2025, Oracle generated $10.3 billion from its IaaS segment, which represented growth of 49% year over year. While this level of growth is impressive, Oracle's management is guiding for even further momentum. During the earnings call, Oracle CEO Safra Catz said that cloud infrastructure growth should eclipse 70% during fiscal 2026, thanks to strong remaining performance obligations (RPO), which are expected to soar by more than 100%. Following the fourth-quarter earnings report, shares of Oracle popped and reached new all-time highs. Normally, I don't encourage investing in a stock when there is so much momentum fueling the share price. But as Catz told investors during the earnings call, "Oracle is well on its way to being not only the world's largest cloud application company -- but also one of the world's largest cloud infrastructure companies." To me, Oracle had the foresight that access to compute was going to be a problem as chip manufacturers worked tirelessly to fulfill supply constraints for GPUs. Given the strong outlook from Oracle's management, combined with infrastructure services becoming an increasingly important application in the broader AI market, I think Oracle is well-positioned for significant growth. For these reasons, I see Oracle as a no-brainer right now, and think investors looking to capitalize on infrastructure as the next big growth trend in the AI realm should consider a position in the stock.

Prediction: This Artificial Intelligence (AI) Stock Could Hit a $1 Trillion Valuation by 2030 | The Motley Fool

Oracle (ORCL -1.56%) stock zoomed higher on June 11 after the company reported its fiscal 2025 fourth-quarter results (for the three months ended May 31), and the post-earnings bounce has taken its market cap to just over $600 billion. The stock is up impressively as its Q4 numbers beat consensus expectations, and the outlook for the current year points toward a nice acceleration in growth. Oracle is benefiting from the rapid adoption of its cloud infrastructure services, which are being rented by customers for training artificial intelligence (AI) models and running inference in the cloud. As a result, the company's growth should accelerate, not only in the current fiscal year, but over the next five years as well. In fact, it won't be surprising to see Oracle joining the trillion-dollar market cap club by the end of the decade, thanks to its AI-powered growth. Let's take a closer look at the catalysts that could propel Oracle's market cap past $1 trillion by 2030. At its financial analyst meeting held in September last year, Oracle management's fiscal 2029 guidance called for at least $104 billion in revenue, along with annual earnings per share growth of 20%-plus. However, the company now seems on track to exceed those projections. Oracle now anticipates fiscal 2026 revenue to land at $67 billion, which is higher than the $66 billion guidance issued in September last year. That's not surprising, as Oracle management anticipates much stronger growth in its revenue pipeline in the current fiscal year, which could eventually allow it to exceed its updated growth expectations. The company expects its remaining performance obligations (RPO) to more than double in fiscal 2026. That's a massive forecast, considering that the company ended fiscal 2025 with $138 billion in RPO, and the metric increased 41% year over year in the final quarter of the fiscal year. For comparison, Oracle ended fiscal 2024 with an RPO of $98 billion, which means that the metric grew by 40% during the year. As RPO refers to the total value of a company's contracts that are yet to be fulfilled at the end of a quarter, the remarkable growth in this metric is great news for Oracle investors, as it points toward a fast-improving revenue pipeline. This is precisely why Oracle expects to deliver much faster top-line growth in the current fiscal year, and because its RPO growth is set to accelerate, it should be able to sustain impressive revenue growth levels over a longer period of time. This is the reason why analysts significantly raised their revenue growth expectations for Oracle. Oracle's RPO forecast suggests that it could be sitting on around $280 billion worth of unfulfilled contracts by the end of the current fiscal year. The good part is that it could continue to land more contracts even after achieving such massive RPO because of the terrific opportunity in the cloud infrastructure market. Goldman Sachs estimates that the global cloud computing market could generate a whopping $2 trillion in revenue by the end of the decade. The infrastructure-as-a-service market is expected to account for $580 billion of that opportunity, while software-as-a-service revenue could account for $780 billion. So Oracle still has more room for growth, and it is pulling the right strings to ensure that it makes the most of the available opportunities on offer. The company currently has 29 dedicated data centers for its customers, and it is going to build another 30 in the current fiscal year. It is also going to increase the number of multicloud data centers from 23 to 70 in the next 12 months. This substantial increase in Oracle's capacity should allow it to capture more of the lucrative end market pointed out, and that's precisely why the company could end up joining the trillion-dollar club by the end of the decade. Consensus estimates project Oracle's earnings to increase by 12% in the current fiscal year to $6.75 per share. This is set to be followed by much stronger growth over the next couple of fiscal years. Assuming the company maintains a 20% annual earnings growth rate in the two years after fiscal 2028, its bottom line could increase to $14.28 per share after five years. Oracle is trading at 32 times earnings right now, which is higher than its five-year average earnings multiple of 26. If it trades in line with its five-year average earnings multiple in 2030, its stock price could hit $381, which points toward 77% gains from current levels. Oracle currently has a market cap of $603 billion, and the potential upside it could deliver by 2030 will easily help its valuation exceed $1 trillion. However, don't be surprised to see this AI stock delivering even stronger gains, as the market could reward it with a richer multiple on account of its accelerating growth. Since Oracle now trades at a discount to the U.S. technology sector's average earnings multiple of 48, investors can consider buying this stock, given its attractive valuation and healthy upside potential.

Oracle shares soar as AI cloud demand propels revenue forecast

Oracle shares surged nearly eight per cent in premarket trading on Thursday after the company raised its annual revenue forecast, driven by strong demand for its AI-related cloud services. The stock has risen nearly six per cent so far this year as confidence in the software sector remained strong despite geopolitical tensions, even as analysts warn that U.S. President Donald Trump's tariffs could undermine Big Tech's AI investments. Earlier this year, Oracle, whose cloud offerings help companies build their AI infrastructure, announced a joint venture called Stargate to deliver large-scale computing capabilities to OpenAI. "Oracle's once-stodgy image levels up to 'cloud-native mage,' and the competitive map now looks less like a classic three-player real time strategy and more like a battle-royale with everyone dropping in, looking for compute loot," said Michael Ashley Schulman, partner at Running Point Capital Advisors. Oracle expects total revenue to be at least US$67 billion for fiscal 2026, CEO Safra Catz said on a post-earnings call. The Texas-based company's cloud services quarterly revenue rose 14 per cent to $11.70 billion. Its overall revenue of $15.90 billion beat estimates of $15.59 billion. At least nine brokerages have raised their price target post-earnings. Oracle trades at a forward price-to-earnings ratio of 25.86, compared to rivals Microsoft at 31.34 and Amazon at 31.80, according to data compiled by LSEG. Microsoft's stock has gained 12.16 per cent, while Amazon's has decreased by 2.8 per cent so far this year. "ORCL has entered an entirely new wave of enterprise popularity that it has not seen since the Internet era in the late 90s," analysts at Piper Sandler added.

Oracle stock soars to all-time high of $198.41 By Investing.com

In a remarkable display of market confidence, Oracle Corporation (NYSE:ORCL)'s stock has reached an all-time high, touching a price level of $198.41. With a substantial market capitalization of $556 billion, InvestingPro analysis indicates the stock is trading above its Fair Value, with multiple valuation metrics suggesting elevated levels. This milestone underscores the tech giant's robust performance and investor optimism about its future prospects. Over the past year, Oracle has delivered a 27% total return, while maintaining strong financial health with a 71% gross profit margin and $55.8 billion in revenue. According to InvestingPro, the company boasts 15+ additional key insights and metrics available to subscribers. The new all-time high represents a significant moment for Oracle, as it continues to expand its cloud-based services and compete in the dynamic tech industry. The company maintains a solid financial position with an Altman Z-Score of 3.01, indicating strong financial health, though investors should note that InvestingPro data shows the RSI suggests overbought conditions. In other recent news, Oracle reported $15.9 billion in total revenue for its fiscal fourth quarter of 2025, marking an 11% year-over-year increase in constant currency. Oracle Cloud Infrastructure (OCI) contributed significantly to this growth with a 62% increase during the quarter, driven by strong demand for AI compute. Oracle has projected its total revenue to grow by 12% in the next quarter, with cloud growth anticipated to reach 28%. Additionally, Oracle expects OCI growth to exceed 70% in fiscal year 2026. Analysts have responded positively to Oracle's results and projections, with DA Davidson, Cantor Fitzgerald, and Stifel all raising their price targets for the company, citing strong guidance and growth in OCI and IaaS revenue. Cantor Fitzgerald noted that Oracle's guidance for IaaS revenue growth in fiscal 2026 exceeds consensus expectations. Meanwhile, Morgan Stanley (NYSE:MS) maintained its Equalweight rating, highlighting Oracle's projected growth in remaining performance obligations and cloud revenue. Despite these positive developments, some analysts, like Oppenheimer, have expressed concerns about Oracle's cash efficiency and margin profiles due to necessary investments in its OCI business.

Oracle beats quarterly revenue estimates

(Reuters) -Oracle surpassed fourth-quarter revenue estimates on Wednesday, boosted by growing demand for its cloud offerings from companies deploying artificial intelligence. The company's growth is largely nurtured by its Oracle Cloud Infrastructure (OCI) solution and support for AI workloads. Analysts see the company becoming more of a cloud service provider that relies less on software growth. "We expect our total cloud growth rate -- applications plus infrastructure -- will increase from 24% in fiscal year 2025 to over 40% in fiscal year 2026," said CEO Safra Catz. Oracle has also been introducing AI assistants, advisers and agents. Its AI Agent Studio, announced in March, is designed to help customers and partners build their own customized AI agents. Revenue for the quarter stood at $15.90 billion, compared with the analysts' average estimate of $15.59 billion, according to data compiled by LSEG. (Reporting by Juby Babu in Mexico City; Editing by Alan Barona)

Oracle soars after raising annual forecast on robust cloud services demand

(Reuters) -Oracle raised its annual revenue growth forecast on Wednesday, betting on robust demand for its cloud offerings from companies deploying artificial intelligence, sending its shares up more than 7% after the bell. For fiscal 2026, Oracle expects total revenue to be at least $67 billion, CEO Safra Catz said on a post-earnings call. With the new forecast, annual revenue is expected to grow by around 16.7%, compared with Oracle's prior projection of a 15% growth. "We expect our total cloud growth rate -- applications plus infrastructure -- will increase from 24% in fiscal year 2025 to over 40% in fiscal year 2026," Catz said. The company's growth is largely supported by its Oracle Cloud Infrastructure solution and support for AI workloads. Oracle's confidence in OCI revenue comes with good reason, said Rebecca Wettemann, CEO of industry analyst firm Valoir. "The multi-cloud approach and the increasing reliance of Oracle enterprise application cloud customers on OCI to support their enterprise data needs are important drivers." The company's willingness and ability to embed generative AI capabilities in its cloud suite of applications at no additional cost have reduced adoption barriers and encouraged experimentation, Wettemann added. Revenue for the quarter ended May 31 stood at $15.90 billion, beating analysts' estimate of $15.59 billion. Quarterly revenue at Oracle's largest unit, cloud services and license support, came in at $11.70 billion, a 14% increase from last year. Excluding items, the company earned $1.70 per share in the fourth quarter, compared with estimates of $1.64 apiece. (Reporting by Juby Babu in Mexico City; Editing by Alan Barona)

Oracle shares soar as AI cloud demand propels revenue forecast

STORY: Shares of Oracle hit a record high on Thursday, surging more than 14% to top the $200-mark for the first time, after the company raised its annual revenue forecast. The positive outlook was driven by strong demand for its AI-related cloud services. Confidence in the software sector remained strong despite geopolitical tensions, even as analysts warn that U.S. President Donald Trump's tariffs could undermine Big Tech's AI investments. Oracle offers cloud services that help companies build their AI infrastructure. And, earlier this year, it announced a joint venture called Stargate to deliver large-scale computing capabilities to OpenAI. One investment adviser said Oracle has ditched its once-stodgy image to become a key player in artificial intelligence. Analysts at Piper Sandler put it this way: "ORCL has entered an entirely new wave of enterprise popularity that it has not seen since the Internet era in the late 90s." Cloud-services revenue jumped 14% in the quarter while sales overall topped estimates. At least nine brokerages raised their price targets on the stock following the release of the results.