Shares of Oracle (ORCL) rose in after-hours trading after the tech firm reported earnings for its fourth quarter of Fiscal Year 2025. Earnings per share came in at $1.70, which beat analysts’ consensus estimate of $1.64 per share. Furthermore, sales increased by 11% year-over-year, with revenue hitting $15.9 billion. This also beat analysts’ expectations of $15.58 billion.
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The revenue increase was mainly driven by the company’s Cloud Revenue segment, which increased by 27% to $6.7 billion, and continues the firm’s longer-term trend of steadily growing its overall sales, as pictured below.
2026 Outlook
Looking ahead, Oracle sees even stronger growth after a solid FY25, according to CEO Safra Catz. Indeed, the company expects total cloud growth to accelerate from 24% in FY25 to over 40% in FY26, with cloud infrastructure growth jumping from 50% to over 70%. In addition, remaining performance obligations are projected to more than double. As a result, Catz said that Oracle is on track to become one of the world’s largest cloud application and cloud infrastructure companies.
Separately, Chairman Larry Ellison highlighted the quick expansion of Oracle’s MultiCloud and Cloud@Customer businesses. Interestingly, MultiCloud revenue from Amazon (AMZN), Google (GOOGL), and Azure (MSFT) surged by 115% quarter-over-quarter, with more triple-digit growth expected in FY26. Moreover, Cloud@Customer revenue rose by 104% year-over-year, while overall Oracle Cloud Infrastructure consumption grew by 62% in Q4 and is projected to grow even faster next year.
Is Oracle a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ORCL stock based on 12 Buys, 11 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average ORCL price target of $180.65 per share implies 2.4% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
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