Oracle names Magouyrk and Sicilia as new co-CEOs

AUSTIN - Oracle Corporation (NYSE:ORCL) announced Monday the appointment of Clay Magouyrk and Mike Sicilia as Chief Executive Officers, with current CEO Safra Catz transitioning to Executive Vice Chair of the company’s Board of Directors. The leadership change comes as Oracle, now valued at $877 billion, has delivered impressive returns of over 86% year-to-date, according to InvestingPro data.

Magouyrk, previously President of Oracle Cloud Infrastructure (OCI), joined Oracle in 2014 from Amazon Web Services and has overseen the development of Oracle’s cloud infrastructure. Sicilia, formerly President of Oracle Industries, came to the company through the acquisition of Primavera Systems and has led Oracle’s vertical applications and applied AI initiatives. The company’s focus on cloud and AI has contributed to its robust revenue growth of 9.67% over the last twelve months.

"Humanity is investing enormous resources in the race to advance Artificial Intelligence. Oracle Cloud Infrastructure is playing a major part in that effort," said Larry Ellison, Oracle’s Chairman and Chief Technology Officer, in the press release. Ellison added that both executives had demonstrated their readiness for leadership roles through their commitment to AI technologies.

Catz, who has served as CEO since 2014, will continue working with Ellison in her new board role. "Oracle’s technology and business have never been stronger. And our breathtaking growth rate points to an even more prosperous future," Catz stated.

The company also announced two additional executive promotions: Mark Hura, currently EVP of Oracle North America Sales, will become President of Global Field Operations, while Doug Kehring, EVP of Operations, has been promoted to Principal Financial Officer.

Oracle reaffirmed the financial guidance provided during its September 9 earnings call and plans to host a conference call today to discuss the leadership changes.

In other recent news, Oracle Corporation has secured a significant $300 billion cloud contract with OpenAI, spanning approximately five years. This agreement is one of the largest cloud contracts ever signed and underscores the increasing investment in AI data centers. Additionally, Oracle is part of a consortium aiming to keep TikTok operational in the United States, as reported by CBS News. This involvement aligns with Oracle’s expanding role in the cloud services sector. Analyst Mark Shmulik from Bernstein highlighted Oracle’s growing position, noting the company’s recent announcement of $317 billion in new remaining performance obligations (RPO).

In terms of analyst insights, Jefferies has reiterated a Buy rating on Oracle stock, maintaining a price target of $360. The firm pointed to Oracle’s market share gains in the AI era as a positive factor. Meanwhile, DA Davidson held its Neutral rating with a $300 price target, considering OpenAI’s growth trajectory and its impact on Oracle’s business. These developments reflect Oracle’s strategic moves and analyst perspectives in the rapidly evolving tech landscape.

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