ORCL's Cloud Database Soars, Propelling Revenue Growth

Oracle’s cloud database services have seen significant growth, with a 31% increase year over year in the fourth quarter of fiscal 2025, reaching annualized revenues of $2.6 billion. The company’s focus on AI integration and autonomous databases is driving top-line growth and positioning it as a key player in the industry.

To compete with giants like Amazon’s AWS and Microsoft’s Azure in the cloud segment, Oracle is investing in infrastructure expansion and innovative AI capabilities. Amazon plans to invest over $1 billion in AI-enabled data centers, while Microsoft is focusing on developing AI-focused data centers globally, posing stiff competition for Oracle.

Despite facing tough competition, Oracle’s shares have surged 43.3% year-to-date, outperforming industry averages. The company trades at a high EV/EBITDA ratio of 28.69X and has a Value Score of F. Analysts estimate a 11.28% increase in fiscal 2026 earnings, with a Zacks Rank #3 (Hold) currently assigned to Oracle.

Zacks Investment Research experts have identified Oracle as a potential stock with money-doubling potential, amidst the rapid growth in cloud database services. Director of Research Sheraz Mian believes Oracle stands out among other recommendations, presenting a promising opportunity for investors looking for significant returns in the market.

Read more at Nasdaq: ORCL’s Cloud Database Gains Steam: Is it the Next Revenue Pillar?