Oracle Corporation (NYSE: ORCL) saw its shares surge in after-hours trading Tuesday following the release of stronger-than-expected fiscal Q4 earnings and an optimistic full-year outlook driven by robust cloud growth and artificial intelligence demand.
The enterprise software giant reported Q4 revenue of $15.9 billion, reflecting an 11% year-over-year increase.
Earnings per share (non-GAAP) came in at $1.70, beating Wall Street estimates and reinforcing confidence in the company’s strategic pivot toward cloud infrastructure and AI services.
Cloud Business Powers Growth
Oracle’s cloud infrastructure segment was the standout performer, posting a 52% increase in revenue. Overall cloud revenue rose 27% as enterprise clients continued migrating to Oracle’s cloud platforms, including its fast-growing Oracle Cloud Infrastructure (OCI).
CEO Safra Catz emphasized the momentum in the company’s AI-driven offerings, stating:
“We are now forecasting total cloud revenue growth of over 40% for the upcoming fiscal year, with infrastructure growth exceeding 70%. Our AI and cloud capabilities are unlocking massive demand across industries.”
Market Reaction and Analyst Upgrades
Investors responded positively to the upbeat guidance, pushing Oracle’s stock up by over 7% in extended trading. Analysts also expressed renewed optimism.
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Jefferies raised its price target to $200, maintaining a Buy rating.
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Cantor Fitzgerald reiterated its Overweight stance with a target of $175, citing “sustained strength in Oracle’s multicloud strategy.”
The company’s commitment to invest $25 billion in expanding its global data center footprint is also being interpreted as a strong bet on long-term cloud demand, despite concerns about high capital expenditures and mounting debt levels.
Navigating Challenges
While the results impressed the market, Oracle is navigating a competitive landscape that includes hyperscale cloud providers like Amazon AWS and Microsoft Azure.
Questions remain about the pace of enterprise cloud adoption and whether Oracle’s aggressive capital spending will yield sustainable margins.
However, Oracle’s emphasis on AI integration across its Fusion applications and OCI ecosystem is seen as a key differentiator, particularly as more businesses seek scalable, secure AI-powered solutions.
What’s Next?
As Oracle enters FY 2026 with strong tailwinds, investors will be watching closely for execution on its infrastructure expansion, AI partnerships, and customer wins in the public and private sectors.
The next few quarters will be crucial in confirming whether Oracle’s momentum is durable or simply a well-timed surge.
Key Financial Highlights:
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Q4 Revenue: $15.9 billion (+11% YoY)
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EPS (Non-GAAP): $1.70
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Cloud Infrastructure Growth: +52%
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Total Cloud Revenue Growth: +27%
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FY 2026 Cloud Forecast: >40% total, >70% infrastructure
Oracle’s renewed growth story has placed it firmly back on the radar for growth-focused investors, particularly those tracking the evolution of enterprise cloud and AI platforms.
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