Oracle Stock Surges 8% on 70% Cloud Revenue Growth Forecast

Oracle Corporation, a prominent technology company, released its fourth-quarter earnings report after the market closed on Wednesday. The report indicated that the company's overall performance exceeded expectations, although the cloud infrastructure segment slightly underperformed. Despite this, the management team projected that Oracle's cloud infrastructure revenue for the fiscal year 2026 is expected to surge by over 70%. This optimistic outlook is driven by a significant increase in capital expenditures, which tripled from the previous year and are projected to continue rising to 250 million dollars in the new fiscal year.

During after-hours trading, Oracle's stock price experienced a notable surge, rising by approximately 8%. This increase was attributed to the positive earnings report and the management's bullish outlook for the upcoming fiscal year. The management's projection of a substantial increase in cloud infrastructure revenue reflects the company's strategic investments and efforts to enhance its cloud services.

Oracle's management team highlighted that the company's total cloud revenue is expected to grow by 40%, with the cloud infrastructure segment leading the way with a projected increase of over 70%. This growth is anticipated to be driven by the company's continued investment in cloud infrastructure and its ability to meet the increasing demand for cloud services. The company's strong performance and optimistic outlook for the future have positioned Oracle as a key player in the cloud computing market. With its strategic investments and focus on innovation, Oracle is well-positioned to capitalize on the growing demand for cloud services and maintain its competitive edge in the market.

Oracle's cloud infrastructure revenue for the fourth quarter was 30 million dollars, a 52% increase from the previous year. The company's total cloud revenue, which includes both Infrastructure as a Service (IaaS) and Software as a Service (SaaS), grew by 27% year-over-year to 67 million dollars, accounting for 42% of the total revenue. Chief Executive Officer Safra Catz noted that the company's cloud infrastructure revenue is expected to grow by over 70% in the fiscal year 2026, compared to the current quarter's growth of 52%. She also predicted that Oracle's total revenue for the fiscal year 2026 would exceed 670 million dollars, surpassing analyst expectations of 651.8 million dollars.

For the first quarter of the fiscal year 2026, Oracle expects adjusted earnings per share to be between 1.46 and 1.50 dollars, with revenue growth projected to be between 12% and 14%. Analysts had expected earnings per share of 1.48 dollars and revenue of 149.6 million dollars, representing a 12.4% increase. The company's optimistic outlook and strong financial performance have positioned it as a leader in the cloud computing market, with a focus on innovation and strategic investments to meet the growing demand for cloud services.

Oracle's management team expressed confidence in the company's future prospects, with CEO Safra Catz stating that the company's revenue growth rate is expected to accelerate significantly in the fiscal year 2026. Oracle is aiming to become not only the largest cloud application company but also one of the largest cloud infrastructure providers globally. The company's strategic investments in cloud infrastructure and its ability to leverage its traditional strengths in the database sector have positioned it for continued success in the cloud computing market.

Oracle's capital expenditures for the fiscal year 2025 exceeded 210 million dollars, a significant increase from the previous year's 70 million dollars. CEO Safra Catz announced that the company's capital expenditures for the new fiscal year are expected to surpass 250 million dollars. This substantial investment is aimed at supporting the company's growth in the cloud infrastructure sector and meeting the increasing demand for cloud services. Oracle's strategic investments and focus on innovation have positioned it as a key player in the cloud computing market, with a strong outlook for future growth and success.