Oracle Corporation (NYSE: ORCL) is one of the top technology stocks of 2025. Its value has tripled in the past three years, and it has increased over 20% since January. The company’s latest earnings report for fiscal 2025, which ended in May, exceeded Wall Street expectations and pushed its shares to a record high close to $200.
Investors and analysts are optimistic about Oracle’s future, highlighting the growth in cloud and AI infrastructure as key factors.
Oracle has shifted from being a traditional software provider to a major player in cloud services and AI infrastructure, driving its stock rise. In fiscal Q4 2025, Oracle’s total revenue grew by 11% year-over-year to $15.9 billion. Revenue from cloud services and license support rose by 14% to $11.7 billion.
Most impressively, revenue from Oracle Cloud Infrastructure (OCI) soared 52% in the quarter, reaching $3 billion, showing that Oracle is making inroads in a market previously dominated by Amazon Web Services and Microsoft Azure.
The growth in Oracle’s cloud services is largely due to the rising demand for AI computing power. The company now has over 100 cloud regions and is quickly expanding its data centers. Its Gen 2 cloud architecture provides better performance and cost advantages for AI training and tasks, attracting more enterprise customers. A key partnership with OpenAI, called Stargate, has strengthened Oracle’s position in the AI cloud market.
Looking ahead, Oracle expects rapid growth in its cloud revenue. CEO Safra Catz predicts total cloud growth (including applications and infrastructure) will rise from 24% in fiscal 2025 to over 40% in fiscal 2026. Cloud infrastructure revenue is expected to grow more than 70%, up from 50% this year. Oracle’s remaining performance obligations, which indicate future revenue, have jumped by 63% to $130 billion, pointing to strong demand and a solid pipeline.
Wall Street has responded positively, with many firms raising their price targets for Oracle. Analysts highlight the company’s success in winning new AI and cloud business, expanding partnerships, and improving profit margins. Despite this rapid growth, Oracle has a lower forward price-to-earnings ratio compared to Microsoft and Amazon, showing that the stock is still attractively priced.
While Oracle’s cloud business is smaller than that of AWS and Azure, its growth rates are exceeding those of its larger competitors. The company is investing heavily in data centers and AI infrastructure, which is helping it close the competitive gap.
However, Oracle must navigate challenges such as supply issues and strong competition. There are also risks in executing its growth plan as it scales its cloud operations.
