From Nasdaq: 2025-06-19 09:10:00

IBM and Oracle are prominent players in the hybrid cloud infrastructure and database services market. IBM offers a range of cloud and data solutions, while Oracle specializes in enterprise-grade database, middleware, and application software. Both companies are focusing on hybrid cloud and AI to meet the evolving needs of businesses.

IBM is expected to benefit from healthy demand for hybrid cloud and AI, driving growth in Software and Consulting segments. The company is making strategic acquisitions to enhance its hybrid multi-cloud approach and strengthen its AI platform and automation capabilities. However, it faces tough competition and pricing pressure.

Oracle’s cloud infrastructure business has seen strong demand, with Infrastructure-as-a-Service revenue growing significantly. The company’s AI database offers a unique platform for leveraging AI with proprietary data. However, its multi-cloud approach poses technical challenges and increases operational risks. Competition from major cloud providers remains a concern.

Zacks estimates show positive growth projections for both IBM and Oracle in terms of sales and EPS. IBM has outperformed Oracle in terms of price performance and valuation metrics, making it a relatively better investment option at the moment. Both companies hold a Zacks Rank #3 (Hold), indicating a level playing field in terms of market positioning.

IBM has shown a 62.9% gain in the past year, outpacing the industry’s growth, while Oracle has seen a 47.5% increase. From a valuation perspective, IBM appears more attractive with a lower forward P/E ratio compared to Oracle. Both companies hold a Zacks Rank #3, with IBM having a better price performance and valuation metrics, making it a more favorable investment choice.



Read more at Nasdaq: IBM vs. Oracle: Which Hybrid Cloud Stock Offers Better Growth?