From Nasdaq: 2025-06-16 10:28:00

Oracle exceeded expectations in Q4 fiscal 2025, with total revenues of $15.9 billion and cloud revenues of $6.7 billion. Despite strong performance, caution is advised due to execution risks. Oracle predicts fiscal 2026 revenues to exceed $67 billion, with cloud revenues growing over 40%. However, escalating capital expenditures may impact profitability.

Oracle’s AI and multi-cloud strategy drove momentum, with database revenues growing and partnerships with AMD and NVIDIA enhancing capabilities. Oracle’s database-centric AI approach creates a competitive advantage. The stock trades at a premium valuation compared to peers, reflecting high growth expectations. Competition from hyperscale cloud providers remains a challenge.

Shares of Oracle have outperformed the sector, gaining 29.2% YTD. The success of Oracle hinges on enterprises adopting multi-cloud strategies and migrating database workloads. Investors should hold existing positions, but new investors may wait for a better entry point. Oracle’s future growth and margin expectations depend on cloud infrastructure growth and competitive positioning.

Zacks Research highlights a little-known communications firm as a top pick for potential growth. Analysts project significant revenue growth in 2025. While not all elite picks are guaranteed winners, this stock has potential for substantial gains. Patient investors may find better entry points in Oracle throughout fiscal 2026, as the stock currently carries a Zacks Rank #4 (Sell).



Read more at Nasdaq: Should Oracle Stock be in Your Portfolio Post Q4 Earnings?