Oracle announced a new cloud agreement. Plus, a Stifel analyst is freshly optimistic about the revenue opportunities ahead of the company.
Shares of software name Oracle Corp Inc (NYSE:ORCL) are charging higher, up 5.6% at $221.72, at last glance, after an upgrade from Stifel to "buy" from "hold.
Oracle shares jumped after a recent filing showed a cloud deal that would add over $30 billion annually starting in the fiscal 2028 year. CEO Safra Catz is slated to share the deal news at a company meeting.
Oracle's growth inflection is now a reality, driven by strong demand for OCI, cloud database, and applications, supporting a 20%+ revenue CAGR through 2030. Despite recent share appreciation and near-term free cash flow constraints from heavy capex, I see Oracle's current share price as an attractive long-term entry point. Oracle's competitive edge comes from superior price/performance in OCI, advanced AI-enabled databases, and multi-cloud partnerships with hyperscalers like AWS, Azure, and Google.
ORCL teams up with xAI to deploy Grok models on OCI, boosting cloud revenue growth and fueling future AI adoption.
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Oracle Corporation Japan (OTCPK:OCLCF) Q4 2025 Results Conference Call June 27, 2025 3:30 AM ET Company Participants Sivaraman Krishna Kumar - CFO, Corporate Executive Officer & Director Yuki Nishio - Senior Manager of Investor Relations Yuki Nishio [Audio Gap]. Sivaraman Krishna Kumar Thank you very much, Nishio-san.
A combination of factors, resulting from years of work positioning the company, including results, guidance, and trends in analysts' sentiment, is driving this market, and it is likely to head higher. Much higher.
Oracle's 4Q FY2025 earnings beat estimates and with FY2026 revenue outlook showing a continued growth reacceleration, likely indicating that a growth inflection point has been reached. The company guided for strong multicloud and OCI revenue momentum, with RPO expected to grow 100% YoY in FY2026, up from 41% in FY2025. The OCI revenue is expected to accelerate further, with 70% YoY growth projected in FY2026, supported by rising demand for AI databases from hyperscalers.
Oracle (ORCL -2.73%) stock has been in fine form on the market over the past couple of months, gaining 77% from its April 21 52-week low. And it looks like this technology giant is primed for more upside following the release of its latest quarterly report.
Oracle's cloud business is experiencing rapid growth, with OCI and AI-driven products fueling double-digit revenue increases and strong demand outpacing supply. Oracle's multi-cloud flexibility and AI-ready database solutions uniquely position it ahead of competitors, enabling large deals even with customers committed to other cloud providers. Valuation remains attractive versus peers like AWS and Azure, with Oracle delivering faster cloud growth, and a solid dividend yield.
Oracle is rapidly expanding data center capacity with a $25B capital outlay, positioning itself as a leading enterprise cloud and AI infrastructure provider. Enterprise adoption of GenAI and agentic AI is fueling massive data growth, driving strong demand for Oracle's cloud and autonomous database services. Despite justified premium valuation, I recommend patience and waiting for price weakness before building a position; I recently reduced my own holdings.