Oracle Projects 9% Revenue Growth, Cloud Infrastructure to Surpass 50% Growth in 2025

Market IntelMonday, Jun 9, 2025 4:11 am ET
2min read

Oracle Corporation (ORCL.US) is scheduled to release its fourth-quarter financial report after the U.S. market closes on June 11. Market analysts anticipate that the tech giant's adjusted earnings per share will marginally increase from $1.63 to $1.64, with quarterly revenue expected to grow by 9% to $15.58 billion. However, the company's previous quarterly performance saw both revenue and earnings fall short of expectations, marking two consecutive quarters of underperformance.

Over the past few years, Oracle has successfully transitioned from a product-oriented model to a subscription-based service platform. The company's strategic focus on cloud technology, particularly in the infrastructure sector, has enabled it to capitalize on the growing market opportunities presented by AI workload processing. Management projects that the cloud infrastructure business will maintain its strong growth trajectory in the 2025 fiscal year, with growth rates expected to surpass the previous year's 50%.

Oracle's stock price has shown resilience, rising approximately 12% over the past month after hitting a ten-month low in mid-April. The 12-month average stock price stands at $157.40. Despite a strong performance in 2024 and a near-tripling of its market capitalization over the past five years, Oracle's current valuation remains attractive from an investment perspective, given its robust growth momentum in the cloud services and AI sectors.

During the third-quarter earnings call, Oracle CEO Safra Ada Catz expressed confidence in the company's future revenue growth. She stated, "We have a clear expectation for future revenue growth. The growth rate of cloud infrastructure revenue in the 2025 fiscal year will exceed the previous year's 50%, and the growth rate in the 2026 fiscal year will accelerate further. We are more confident than ever in achieving our $66 billion revenue target (approximately a 15% growth rate). More importantly, we expect the growth rate in the 2027 fiscal year to reach 20%, which is more optimistic than previous guidance."

Third-quarter data revealed that adjusted earnings per share, excluding special items, were $1.47, compared to $1.41 in the same period last year. Net income for the quarter reached $2.94 billion (or $1.02 per share), a significant increase from $2.4 billion (or $0.85 per share) in the same period last year. This growth was primarily driven by revenue increasing from $13.28 billion to $14.13 billion, with a 10% increase in cloud services and license support business, which accounts for more than 75% of total revenue, effectively offsetting the sluggish performance of other business units.

Looking ahead, Oracle's $130 billion in backlog orders will serve as a growth engine for the current fiscal year. In the long term, Oracle is aggressively expanding into the U.S. AI infrastructure market through its joint venture "Stargate" with OpenAI, SoftBank, and MGX, positioning itself advantageously in the long-term development trend of generative AI. This strategic move is expected to further solidify Oracle's position in the AI and cloud services sectors, potentially driving future growth and innovation.

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