Oracle (ORCL, Financial) is experiencing a significant surge, reaching a new all-time high. The boost comes after the company disclosed in an 8-K filing that CEO Safra Catz plans to share positive insights with Oracle colleagues. Additionally, Stifel's recent upgrade of the stock contributes to this upward momentum.
- CEO Safra Catz is expected to announce, "Oracle is off to a strong start in FY26. Our MultiCloud database revenue continues to grow over 100%, and we've signed multiple large cloud services agreements, including one projected to contribute more than $30 billion in annual revenue starting in FY28." This aligns with the optimistic outlook shared during Oracle's Q4 call on June 11.
- Oracle's Q4 report marked its largest EPS beat in two years, following three misses in the previous four quarters. It also achieved its first double-digit revenue growth quarter in two years. Despite its size, Oracle is accelerating its top-line growth, with expectations for continued acceleration in the coming years.
- The RPO metric grew 41% year-over-year to $138 billion in Q4, slightly lower than the 62% growth in Q3, which was Oracle's strongest booking quarter ever. The RPO still increased 6% sequentially. Oracle is currently unable to meet the high demand, resulting in scheduling customers for future dates until supply catches up. This is an unprecedented situation for Oracle.
- A potential growth catalyst for Oracle is its partnership in the Stargate Project, a large-scale AI infrastructure initiative with OpenAI, SoftBank, and MGX. The project aims to establish several large data centers across the US to advance AI technology. If Stargate meets its expectations, Oracle's RPO growth could be understated.
Oracle is making significant strides, transitioning from hardware/on-premises to a cloud-focused approach. Management expressed confidence on June 11 that it will exceed its revenue growth targets for FY27 and beyond. Oracle's ability to project revenue growth acceleration two years ahead is rare for a company of its size, signaling positive prospects for other tech companies reporting soon.
