Oracle (ORCL +13%) saw a significant rise in its stock price following a strong finish to FY25, marked by a robust Q4 earnings report. The company achieved its largest EPS beat in two years, with revenue increasing by 11.3% year-over-year to $15.90 billion, marking its first double-digit growth quarter in two years. Oracle also provided in-line guidance for Q1 (August).
Key Highlights:
- Oracle reached a tipping point in its cloud transition, achieving double-digit revenue growth in Q4, and anticipates continued growth as the company expands.
- The company's RPO grew 41% year-over-year to $138 billion, a strong performance despite not matching the 62% growth seen in Q3, Oracle's strongest booking quarter ever.
- Oracle is currently unable to meet all customer demand, a situation unprecedented in its history, leading to scheduling customers for future availability.
- A potential growth catalyst is Oracle's partnership in the Stargate Project, an AI infrastructure initiative with OpenAI, SoftBank, and MGX, aimed at deploying large data centers across the US to advance AI technology. Success in this project could significantly boost Oracle's RPO growth.
Investors are encouraged by Oracle's substantial upside after recent mixed quarters. Management is confident that it will exceed its revenue growth targets for FY27 and is optimistic about surpassing prior targets for FY29. Such growth projections are rare for a company of Oracle's size and bode well for other tech companies reporting soon.
