Oracle shares surge on strong results, ambitious cloud forecast

Published: 23:56 12 Jun 2025 EDT

 Oracle Corp (NYSE:ORCL, ETR:ORC)’s shares jumped in US trading overnight after the company released impressive results for the fourth quarter and full financial year, with total quarterly revenues up 11% year-over-year to $15.9 billion.

The strong performance was driven by robust demand for Oracle’s cloud infrastructure and applications, with cloud revenues climbing 27% to $6.7 billion, marking a major growth area for the company. In particular, cloud infrastructure (IaaS) revenue surged 52%, underscoring the strength of Oracle’s cloud offerings as enterprises increasingly turn to artificial intelligence (AI) and cloud-based services.

The results were above Wall Street expectations, with Oracle’s adjusted earnings per share of $1.70 surpassing analyst estimates. The company’s strong quarterly performance, combined with its positive full-year growth of 8%, sent Oracle’s stock price soaring by 13% on Thursday to a record high of $199.86 per share.

Cloud infrastructure driving future growth

Oracle's management expressed confidence that the 2026 financial year will be even stronger, with the company projecting a dramatic acceleration in its cloud growth rate. Chairman Larry Ellison highlighted that cloud infrastructure revenue is expected to surge over 70%, improving on the significant fourth-quarter growth.

With MultiCloud database revenue growing 115% quarter-on-quarter, Oracle’s cloud business is expected to continue its upward trajectory, fuelled by the growing demand for AI services and cloud databases.

The company is also expanding its footprint in the cloud infrastructure space, with plans to grow its MultiCloud datacentres. Oracle’s continued investments in its cloud infrastructure business are likely to solidify its position as one of the largest cloud infrastructure providers globally.

Solid financials and strategic investments

For the 2025 financial year, Oracle posted total revenue of $57.4 billion, an 8% increase from the previous year. The company’s cloud services and license support revenues were up 14% year-over-year to $11.7 billion. Non-GAAP net income for the year reached $17.3 billion, with earnings per share hitting $6.03, an increase of 10% from the prior year.

Oracle also demonstrated robust cash flow, with operating cash flow of $20.8 billion, a 12% increase from the previous financial year. The solid cash flow supports Oracle’s aggressive expansion strategy, including its focus on cloud infrastructure and the launch of new Oracle Cloud@Customer datacentres, which grew by 104% year-over-year in the quarter.

Oracle’s shares jumped more than 13% following the announcement, with investors encouraged by the optimistic cloud growth projections and expansion plans. The results and positive outlook reflect Oracle’s successful pivot to cloud infrastructure, positioning it as a major player in the cloud space as enterprise adoption of AI and cloud services accelerates.