Oracle Share Price Booms On The Back Of Resilient Earnings and AI Cloud

Oracle Corporation (NYSE: ORCL) is a company that has recently been in the spotlight of most investors following the release of its good Q4 financial results of the fiscal year 2025. The share price of the company has reached a new high of over $200, the first time ever, owing to the impressive performance of the company which was powered by a rapid growth in its cloud and AI business.

Oracle Share Quarterly Earnings Surpass Anticipation

Oracle Share recorded revenue of 15.9 billion in the fourth quarter, indicating a growth of 11 percent, year-on-year. The non-GAAP earnings per share (EPS) of the company were $1.70, surpassing the estimates of analysts of $1.64. The massive financial results were largely led by the surging cloud business of Oracle.

The cloud infrastructure segment, also known as Infrastructure-as-a-Service (IaaS), grew by an impressive 52%, generating $3 billion in revenue. This shows Oracle’s growing strength in the highly competitive cloud market, where it competes with big names like Amazon Web Services (AWS) and Microsoft Azure.

Oracle Share soars in after-hours trading.

After the earnings announcement, Oracle stock price made a significant rise in after-hours trading and before the market. The stock jumped up to almost 9 percent in the pre-market and as much as 12 percent in the after-hours trade indicating the confidence of investors in the ability of Oracle to grow in future. The stock touched a new record high of $201.38 on June 12, 2025.

Strong Growth Outlook for Fiscal 2026

The management of Oracle gave a positive projection of the fiscal year 2026. The firm projects overall revenue to exceed $67 billion, whereas cloud revenue will increase by about 40 percent and IaaS revenue will increase by about 70 percent.

Such bullish revenue growth projection has caused a number of analysts to increase their Oracle stock price target. As an illustration, Deutsche Bank has a target of $240, Piper Sandler has a target of $190, whereas WestPark Capital has a target of $246.

Massive Investment on AI and Cloud Infrastructure

Oracle has been making huge investments in order to succeed in the AI and cloud markets. The company incurred capital expenditures (CapEx) of $9.1 billion in Q4 alone, taking the total CapEx fiscal 2025 to $21.2 billion. Oracle has set aside approximately $25 billion to be used in the fiscal 2026 to increase its AI and cloud infrastructure.

Such investments will play a pivotal role in helping Oracle stay competitive in the fast evolving AI market. The company additionally declared a collective endeavor, Oracle Stargate with OpenAI and SoftBank, and intends to spend $100 to 500 billion on AI data facilities over the next several years.

Record Backlog Reflects Strong Demand

The other good indication in favor of Oracle is that it has an increasing backlog of business. Its remaining performance obligations (RPO) that comprise future revenues under contract have grown to $138 billion, an increase of 41 percent quarter-over-quarter. This backlog is supposed to increase twice in the coming year which means that Oracle services are in high demand.

Not All Risks Have Vanished

As much as the growth story of Oracle is remarkable, there are certain risks that investors ought to know. The elevated capital expenditures being incurred by the company on the infrastructure might strain the free cash flow of the company that could impact dividends and share repurchases. Oracle recorded a decrease in free cash flow in Q4 because of its high CapEx expenditure.

Moreover, Oracle similar to other international businesses is threatened by increasing interest rates, macro-economic instability, and geopolitical risks which may eventually affect its further development.

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Conclusion

The latest earnings release and growth guidance have sent Oracle investors into a frenzy sending the stock to new all time highs. Oracle looks like a solid technology company because its efforts at growing its AI and cloud business seem to be yielding fruits. Nevertheless, investors ought to monitor the impact of the intense investment process on the company as well as the macroeconomic risks that could affect the company performance in the long run.

Oracle has a stock to keep an eye on in 2025 and beyond as it keeps investing in the latest technologies and expanding its presence in the cloud and AI markets.