Oracle Corporation (NYSE: ORCL) delivered a standout performance this week, with its stock surging over 8% in pre-market trading following the company’s announcement of a sharply raised annual revenue forecast and continued robust demand for its cloud services.
The move underscores Oracle’s accelerating transformation into a cloud-first technology powerhouse, as enterprises increasingly turn to Oracle’s infrastructure and AI-driven solutions to power their digital operations.
For the fiscal fourth quarter ending May 31, Oracle reported revenues of $15.9 billion, an 11% year-over-year increase and well above analyst expectations.
The company’s largest division, cloud services and license support, posted a 14% revenue jump to $11.7 billion, reflecting surging adoption of Oracle Cloud Infrastructure (OCI) and the company’s expanding footprint in AI-related workloads. Adjusted earnings per share came in at $1.70, beating forecasts and highlighting Oracle’s operational strength in a competitive landscape.
CEO Safra Catz expressed strong confidence in the company’s outlook, projecting total revenue of at least $67 billion for fiscal 2026—an upgrade from previous guidance and representing an anticipated growth rate of 16.7%. Catz also forecasted that Oracle’s overall cloud growth rate, encompassing both applications and infrastructure, will climb from 24% in fiscal 2025 to over 40% in fiscal 2026. Notably, cloud infrastructure revenue is expected to soar by more than 70% next year, up from the already impressive 50% growth seen this year.
Oracle’s momentum is further fueled by its rapid rollout of AI-driven solutions, including the AI Agent Studio, which enables clients to develop custom AI agents for business applications. Strategic partnerships with industry leaders such as Cleveland Clinic, IBM, and Temu are also driving new business and expanding Oracle’s reach.
The company’s capital expenditures are set to exceed $25 billion in fiscal 2025, underscoring its commitment to meeting soaring demand and scaling its cloud infrastructure globally. Oracle’s strong operating cash flow, which reached $20.8 billion in fiscal 2025, provides the financial muscle to support these investments.
As Oracle continues to shift its business mix toward high-growth, high-margin cloud services, analysts see the company well-positioned for sustained expansion. With a raised revenue outlook and surging demand for cloud and AI offerings, Oracle’s stock is capturing renewed attention from investors seeking exposure to the next phase of enterprise technology growth.
