Oracle Stock Soars on Strong AI Cloud Growth Forecast

Updated June 13, 2025
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Oracle’s stock experienced ⁤a significant surge following the ⁤release of⁢ its fiscal fourth-quarter results, fueled by increasing⁣ demand for its AI cloud data storage services. The technology company’s shares jumped 15% after the report.

The company, founded by‍ Larry Ellison in 1977,⁤ reported $15.9 billion in revenue for the quarter, an 11% increase year-over-year, surpassing estimates of $15.5 billion. Net income rose 9% to ⁣$3.4‍ billion, or $1.19 per share. Adjusted net income reached $4.9 billion, or $1.70 per share,‍ exceeding analysts’ expectations of $1.64.

Cloud services account for approximately 74% ‍of Oracle’s revenue, ⁢generating $11.7 billion in the fourth quarter, a 14% increase from the previous year.⁣ Cloud infrastructure revenue saw a 52% increase to $3 billion, while cloud application revenue rose 12% to $3.7 billion. Multi-cloud database revenue from Amazon,Google,and Azure spiked 115% during the quarter.

Oracle’s growth prospects are ⁢bolstered by recent ⁢major deals, including a partnership with OpenAI⁢ on the Stargate initiative and an agreement with the ‍cleveland Clinic and G42 to develop an AI-based healthcare platform.

“FY25 was a very good year—but we believe FY26 will be even better as ⁤our revenue growth rates will be dramatically higher,” Oracle CEO Safra Catz said. “We expect our total cloud growth rate—applications plus infrastructure—will increase from 24% in ‍FY25 to over ⁣40% in ⁢FY26.”

Catz also projected a 70% growth ⁢rate for the cloud infrastructure business in fiscal year 2026, a ‍significant ‍increase from the 52% growth in the last fiscal year. The company’s remaining performance obligations (RPO) are expected ⁤to double in the⁢ new fiscal year,following a 41% increase to $138⁢ billion in the previous year.

Oracle anticipates continued growth in multi-cloud revenue, facilitated by partnerships with other cloud providers.Ellison noted the company has 23 multi-cloud data centers live, with plans to build 47 more in the next year. He expects triple-digit multi-cloud revenue growth to continue in fiscal year 2026.

“Overall Oracle Cloud Infrastructure consumption revenue⁤ grew 62% in Q4,” said Ellsion. “We ⁢expect OCI consumption‍ revenue to grow even faster in FY26. OCI revenue growth rates ⁢are skyrocketing—so is demand.”

Following the ⁢optimistic outlook, Deutsche Bank raised its target for Oracle stock by $40 per share to $240, while BofA increased it by $64 to $220. Year-to-date, Oracle stock is up approximately 20%, and it has surged roughly 43% over the past year.

What’s next

With a forward P/E of 25 and a strong growth outlook,Oracle appears to have potential for further gains in the AI cloud services market.