Oracle Reports 11% Revenue Growth, Sees 70% Cloud Sales Surge

Oracle reported strong financial results for fiscal 2025 with total revenues up 8% to $57.4 billion and Q4 revenues rising 11% year-over-year to $15.9 billion, driven largely by a 27% increase in cloud revenue. CEO Safra Catz projected even more accelerated growth for fiscal 2026, raising revenue guidance to $67 billion and forecasting cloud business growth rates to exceed 40%. Oracle’s cloud infrastructure sales are expected to jump over 70% in the current fiscal year, fueled by demand for AI-focused computing power and partnerships with major AI clients like OpenAI, Elon Musk’s xAI, and Meta. Chairman Larry Ellison emphasized Oracle’s unique position as the custodian of most of the world’s valuable data, enabling enterprises to leverage AI models on their own data with Oracle’s AI-centric database technology. The company’s multi-cloud platform and collaborations with Microsoft, Google, and AWS continue to strengthen its market position, contributing to a 41% increase in total remaining performance obligations to $138 billion. Despite strong analyst optimism reflected in an 'Outperform' consensus rating, some valuation models suggest a possible downside from current stock prices, indicating cautious investor sentiment amid rapid growth expectations.