Oracle Corp Executive Sells 10,000 Shares, Cloud Business Sees 27% Growth

Oracle Corp (ORCL) reported Q4 revenue of $15.9 billion, up 11% YoY, and total cloud revenue of $6.7 billion, up 27%. Cloud database services revenue rose 31% and autonomous database consumption revenue increased 47%. The company's estimated GF Value in one year is $152.14, suggesting a downside of 35.12% from the current price. Oracle's average brokerage recommendation is 2.1, indicating "Outperform" status.

Oracle Corp (ORCL) reported strong financial results for the fourth quarter of fiscal 2025, with revenue of $15.9 billion, up 11% year-over-year (YoY). Total cloud revenue reached $6.7 billion, an increase of 27% YoY, driven by robust growth in cloud database services and autonomous databases. Cloud database services revenue surged 31% YoY, while autonomous database consumption revenue grew by 47% [2].

Oracle's estimated GF Value in one year is $152.14, suggesting a potential downside of 35.12% from the current price. Analysts maintain an average brokerage recommendation of 2.1, indicating an "Outperform" status [2].

Despite the positive results, analysts are concerned about Oracle's future capital needs. Barclays analyst Keith Bachman has warned that Oracle might need to raise capital in the following years, most likely in fiscal 2026 or 2027, due to increased expenditure and cash requirements for dividends and share buybacks. Bachman anticipates Oracle's free cash flow could turn negative in FY26 and FY27, indicating a significant need for capital [1].

Oracle's CEO Safra Catz projected even stronger growth in FY26, with cloud infrastructure revenue expected to grow over 70% and total cloud revenue by more than 40% [1]. However, the company faces stiff competition in the cloud segment from Amazon's AWS and Microsoft's Azure, which are also investing heavily in AI and data centers [2].

Oracle's stock has appreciated 43.3% year-to-date, outperforming both the Zacks Computer and Technology sector's return of 7% and the Zacks Computer-Software industry's growth of 16.4% [2]. The stock trades at a three-year EV/EBITDA of 28.69X, substantially above the industry average of 20.07X, with a Value Score of F [2].

References:
[1] https://www.scottcoop.com/news/story/33281476/orcl-stock-warning-analysts-say-oracle-may-need-to-raise-cash-soon
[2] https://finance.yahoo.com/news/orcls-cloud-database-gains-steam-163500503.html