Oracle stock earnings Q4 2025: ORCL stock soared nearly 8% in after-hours trading after beating Wall Street’s Q4 forecasts. The company also offered an optimistic outlook on future cloud growth.
Oracle Earnings Beat Wall Street Projections
For the fiscal fourth quarter ended May 31, Oracle reported:
- Earnings per share (adjusted): $1.70 vs. $1.64 expected
- Revenue: $15.9 billion vs. $15.59 billion expected
That marks an 11% year-over-year revenue increase, with net income reaching $3.43 billion.
Cloud Growth Accelerates
On the analyst call, CEO Safra Catz projected that Oracle’s cloud infrastructure revenue will grow over 70% in fiscal 2026, rising from 52% growth in Q4 of fiscal 2025.
She projected $67 billion+ in revenue for FY 2026, outpacing the LSEG consensus of $65.18 billion.
Looking ahead, Oracle is set to surpass its $104 billion fiscal 2029 revenue target provided last year.
Cloud Deals and AI Partnerships Boost Confidence
Oracle’s cloud and software revenue continues to surge:
- Cloud services and license support revenue: $11.7 billion
- Cloud and on-premises license revenue: $2.01 billion
Major developments this quarter include:
- A new AI health care delivery platform with Cleveland Clinic and G42
- Expanded cloud partnerships with IBM
- SoftBank’s $6.5 billion acquisition of Oracle-backed chip designer Ampere
- Temu, a Chinese e-commerce platform, moving to Oracle Cloud
Massive Infrastructure Demand
CTO Larry Ellison said Oracle received an unprecedented order from an unnamed client for its entire available cloud capacity.
“We’ve never gotten an order like that before,” Ellison noted, highlighting surging demand in the AI era.
OpenAI Stargate & CapEx Expansion
Oracle remains a key infrastructure partner for OpenAI’s Stargate project, though Stargate has “not formed yet,” per Catz.
Oracle’s capital expenditures hit over $21 billion in FY25, up from under $7 billion the previous year. FY26 is expected to surpass $25 billion.
ORCL Stock Outpaces Market
As of June 11:
- Oracle stock (ORCL) is up 6% YTD
- S&P 500 is up 2% YTD
The market clearly approves of Oracle’s cloud-first direction and aggressive expansion strategy.
Conclusion
With strong Oracle earnings, cloud growth acceleration, and massive AI infrastructure demand, ORCL stock looks well-positioned for long-term gains.
Source: CNBC
