Oracle Reports 11% Revenue Growth, Shares Rise on AI Cloud Demand

Oracle reported strong fourth-quarter fiscal 2025 results, exceeding Wall Street expectations with an 11% revenue increase to $15.9 billion, driven primarily by robust demand for AI cloud services. The company's cloud revenue, including IaaS and SaaS, grew notably—27% overall—with Cloud Infrastructure revenue up 52% and Cloud Applications revenue rising 12%, signaling significant momentum in AI-driven cloud adoption. Oracle's CEO Safra Catz projected even higher revenue growth for fiscal 2026, anticipating cloud growth rates increasing from 24% to over 40%, and cloud infrastructure growth exceeding 70%. Analyst sentiment remains positive, with firms like Barclays maintaining overweight ratings and issuing optimistic price targets, reinforced by Oracle's 44% stock return over the past year and strong remaining performance obligations growth. This performance highlights Oracle's successful strategic transition to AI-enhanced cloud offerings, positioning it competitively against other tech giants like Microsoft and Amazon. The company's expansion of Multicloud data centers and launch of AI tools such as AI Agent Studio further demonstrate its commitment to leading the evolving cloud services market.