Oracle Benefits From AI Cloud Service Adoption: A Sign of More Upside?

From Nasdaq: 2025-06-27 11:44:00

Oracle’s collaboration with xAI via OCI is set to boost cloud services and license support revenues. OCI offers end-to-end solutions for enterprise workloads, including AI services. Partnership with xAI will increase OCI usage and drive long-term contract renewals. Cloud revenues expected to grow significantly in 2026.

Oracle faces tough competition from Alphabet and Amazon. Google Cloud invests in custom AI chips, while Amazon’s AWS deploys AI applications like Alexa+. Both companies are advancing in AI technology, impacting enterprise-AI sophistication.

ORCL outperforms in share price performance, with a 27.7% YTD appreciation. Trading at a three-year EV/EBITDA of 26.53X, above industry average. Zacks Consensus Estimate projects 16.08% YOY revenue growth for fiscal 2026. ORCL currently carries a Zacks Rank #3 (Hold).

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