Oracle (ORCL, Financial) reported fourth-quarter revenues of $15.9 billion, slightly surpassing market predictions of $15.59 billion. CEO Safra Catz expressed optimism about the company's future, forecasting a substantial increase in revenue growth rates for the upcoming fiscal year (FY26). The company anticipates its total cloud growth, encompassing applications and infrastructure, to jump from 24% in FY25 to over 40% in FY26. Furthermore, Oracle expects its Cloud Infrastructure growth rate to accelerate from 50% in FY25 to beyond 70% in FY26, with RPO expected to more than double.
Oracle's cloud operations continue to expand impressively. Multicloud database revenue, involving collaborations with giants like Amazon, Google, and Azure, increased by 115% from the third to the fourth quarter. Currently, Oracle operates 23 Multicloud datacenters and plans to establish 47 more in the next year. The company's Oracle Cloud@Customer datacenters also saw a year-over-year revenue surge of 104%, with plans to add 30 more dedicated centers. Overall, Oracle Cloud Infrastructure consumption revenue rose by 62% in the fourth quarter, with expectations for even faster growth in FY26.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 31 analysts, the average target price for Oracle Corp (ORCL, Financial) is $183.18 with a high estimate of $246.00 and a low estimate of $130.00. The average target implies an upside of 3.86% from the current price of $176.38. More detailed estimate data can be found on the Oracle Corp (ORCL) Forecast page.
Based on the consensus recommendation from 41 brokerage firms, Oracle Corp's (ORCL, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Oracle Corp (ORCL, Financial) in one year is $142.41, suggesting a downside of 19.26% from the current price of $176.38. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Oracle Corp (ORCL) Summary page.
