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Oracle (NYSE:ORCL) achieved double-digit organic revenue growth in its fiscal fourth quarter, its first such performance in over a decade, according to Mizuho (NYSE:MFG) analyst Siti Panigrahi, who reiterated an Outperform rating and $180.00 price target on the stock. The milestone was driven by strong momentum across cloud infrastructure and software-as-a-service (SaaS) offerings.
The company reported a 41% year-over-year increase in remaining performance obligations (RPO) to $138 billion, without any contribution from its Stargate initiative, which management noted is still in formation. Fourth-quarter revenue grew 11%, with Oracle Cloud Infrastructure (OCI) growth accelerating to 62% year-over-year while Fusion Cloud ERP grew 22%.
Management guided to $67 billion in revenue for fiscal year 2026, representing 16% year-over-year growth, an increase from previous guidance of 15%. The company expects RPO growth to exceed 100% next year as cloud demand continues to accelerate.
Mizuho highlighted that Oracle has reemerged as a double-digit growth company, compared to its 2% revenue compound annual growth rate from fiscal years 2012 to 2022. This transformation has been driven by accelerating demand for infrastructure, strong SaaS traction, and a deepening multi-cloud strategy.
The research firm maintains that Oracle is well-positioned for long-term growth as the company continues to expand its cloud offerings and enterprise solutions portfolio.
In other recent news, Oracle Corporation reported its fourth-quarter earnings for fiscal year 2025, exceeding expectations with an earnings per share (EPS) of $1.70 compared to the forecasted $1.64. The company’s revenue also surpassed projections, reaching $15.9 billion against an expected $15.58 billion, marking an 11% year-over-year growth driven by cloud services. Oracle’s strong performance in cloud services and license support, which increased by 12%, highlights the company’s effective execution of its cloud and AI strategies. Piper Sandler raised its price target for Oracle from $130 to $190, citing a strong remaining performance obligation (RPO) backlog, although maintaining a Neutral rating due to concerns about capital intensity risks. Oracle’s RPO stands at $138 billion, a 41% increase, reflecting the growing demand for its cloud services. The company plans significant capital expenditure to expand its cloud infrastructure, with over $25 billion earmarked for fiscal year 2026. Looking ahead, Oracle projects a 16% growth in total revenue for fiscal year 2026, expecting cloud revenue to grow by more than 40% and cloud infrastructure revenue by over 70%. This optimistic outlook is supported by Oracle’s strategic focus on integrating AI capabilities and expanding its cloud infrastructure to meet increasing demand.
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