Oracle Corporation ($ORCL) Stock: Surges on Raised Annual Revenue Forecast and Robust Cloud Demand

TLDR

Oracle raised its fiscal 2026 revenue forecast to at least $67 billion. Cloud services revenue surged 14% year-over-year to $11.7 billion. Q4 earnings beat expectations with $1.70 EPS versus $1.64 forecast. Oracle confirmed partnerships with Cleveland Clinic, IBM, and Temu. Capex expected to exceed $25 billion in fiscal 2025 to meet soaring demand.

Oracle Corporation ($ORCL) stock closed at $176.38 on June 11, down 0.62%. However, in pre-market trading, shares jumped by over 8% to $190 following a raised revenue outlook for fiscal 2026.

Oracle Corporation (ORCL)

The company now expects annual revenue of at least $67 billion, signaling strong growth driven by surging demand for its cloud services and AI solutions. This revision implies an expected growth of 16.7%, up from the previously projected 15%.

CEO Safra Catz highlighted confidence in Oracle Cloud Infrastructure (OCI), stating total cloud growth is anticipated to rise from 24% in fiscal 2025 to over 40% in fiscal 2026.

Quarterly Earnings Exceed Expectations

For the fiscal fourth quarter ending May 31, Oracle reported revenue of $15.90 billion, surpassing the $15.59 billion estimate. Adjusted earnings per share stood at $1.70, above the expected $1.64. Revenue from cloud services and license support, Oracle’s largest segment, climbed 14% year-over-year to $11.7 billion, also beating forecasts. Net income increased to $3.43 billion from $3.14 billion a year earlier.

Oracle, $ORCL, Q4-25. Results:
🟢 +4% Post-Market

📊 Adj. EPS: $1.70 🟢
💰 Revenue: $15.9B 🟢
📈 Net Income: $3.4B
🔎 Cloud Infrastructure (IaaS) revenue surged to $3.0B, showing continued strong momentum in OCI demand and multicloud growth. pic.twitter.com/aFK1utxpYG

— EarningsTime (@Earnings_Time) June 11, 2025

For fiscal Q1, Oracle expects adjusted earnings per share of $1.46 to $1.50, with revenue growth projected between 12% and 14%.

Cloud, AI, and Global Partnerships Drive Growth

Oracle’s growth is fueled by its ability to embed generative AI within its cloud suite without raising customer costs, enhancing adoption rates. The company recently partnered with Cleveland Clinic and UAE-based G42 on a healthcare AI delivery platform. It also announced consulting deals with IBM and disclosed that Chinese retailer Temu is shifting infrastructure to Oracle’s cloud.

In a significant development, SoftBank plans to acquire Ampere, a chip design startup backed by Oracle, for $6.5 billion.

Capex Expansion to Meet Soaring Demand

Oracle’s capital expenditures exceeded $21 billion for fiscal 2025, far surpassing the previous year’s $7 billion. Catz expects capex to surpass $25 billion this fiscal year to accommodate unprecedented demand. Co-founder Larry Ellison noted a rare bulk cloud capacity order from a major client, forcing Oracle to reallocate resources.

Ellison also reaffirmed Oracle’s pivotal role in OpenAI’s Stargate AI project, though the initiative remains in formation.

Long-Term Outlook Remains Strong

Looking further ahead, Oracle anticipates exceeding its $104 billion revenue target for fiscal 2029, previously set in September. This optimism stems from the continued expansion of its AI and cloud infrastructure services.

 

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