Oracle co-founder Larry Ellison, right Chief Technology Officer, Chairman, and US President Donald Trump shared laughter using stools using stools as he spoke at a press conference at the Roosevelt Room in Washington’s White House on January 21, 2025. Wars, cryptocurrencies and other topics in Ukraine.
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Oracle The shares surged to a record closing Thursday, 13% after database software vendors issued robust revenue and strong forecasts.
Revenues rose 11% year-on-year in the fourth quarter to $15.9 billion, exceeding $15.9 billion, according to LSEG. Adjusted earnings of $1.70 per share exceeded the average analyst estimate of $1.64.
“Ork has entered an entirely new wave of enterprise popularity that we’ve never seen since the internet age in the late ’90s,” a Piper Sandler analyst wrote in a note to his client. The company is one of several to raise its stock price targets, raising its forecast from $130 to $190.
Oracle is moving forward in the cloud infrastructure market to challenge Amazon, Google and Microsoft. By comparison, we had $3 billion in cloud revenue in the May quarter, but we count productivity software subscriptions and cloud infrastructure sales when reporting cloud metrics, compared to more than $12 billion from Google. But Oracle’s business is growing faster.
Future expansions can also arise from the sale of Oracle’s databases on the cloud other than itself.
“The growth rate for multicloud is incredible,” Oracle Chairman Larry Ellison said during a conference call with analysts on Wednesday. “In other words, our databases are currently moving very rapidly in the cloud because our databases have all these AI capabilities.
The remaining performance obligations are a measure of money expected to be recognized as future revenue, at $138 billion, an increase of 41% from the previous year. Oracle CEO Safra Catz said the RPO is likely to more than double in 2026, which ends in May 2026. He said revenue for the new fiscal year should exceed $67 billion. That’s higher than the LSEG’s $651.8 billion consensus.
Profits from Openai’s Stargate Artificial Intelligence Data Center Project are targeted at $500 billion over four years, and are not yet included in the forecast.
“If Stargate was found out, if everything was advertised, we underestimated the growth of the RPO,” Ellison said.
For fiscal year 2029, revenue should exceed the $100 billion target set for September, Catz said.
Still, companies face the challenge of meeting client demand in the cloud.
“Demand continues to dramatically outperform supply,” Cats said, but she added that the company has no issues with procurement. nvidia Graphic processing unit.
An RBC analyst who recommends holding the stock has raised its price target from $195 to $145. However, they said “against the background of continuous capacity constraints, we are struggling to see the path to meaningful acceleration in the near future.”
Watch: Oracle stocks hit record highs
