Oracle ,Befall -0.62%, On June 11, the results of their financial 2025 fourth quarter reported, which offers quarterly revenue of $ 15.9 billion (up to 11%) and annual revenue of $ 57.4 billion (up to 9%), which crosses the earlier guidance. This increased its fiscal 2026 revenue target to more than $ 67 billion, with 16% increase. The company highlighted its cloud revenue, which increased by 27% to $ 6.7 billion in the quarter, and its remaining performance obligation (RPO) increased by 41% to 41% to $ 138 billion, it also expects to increase its Cloud Infrastructure (IAAS) segment to more than 70%.

Unprecedented Cloud Demand Drive Record Capex and Supply Lack

In the quarter ended May 31, Oracle’s Cloud Infrastructure Services reached an annual revenue run rate of about $ 12 billion, yet its supply was inadequate to meet the increasing demand. In his efforts to build its footprint to take advantage of that mismatch, it performed $ 9.1 billion in capital expenditure, resulting in a negative -free cash flow of $ 2.9 billion. The company stated that its CAPEX would be more than $ 25 billion in FY 2026, which would be more than $ 21.2 billion in fiscal 2025, with revenue-generating data center devoted to equipment equipment.

,[W]E is putting as much capacity as possible as we can as soon as possible. I believe that $ 25 billion can be understood next year. So all this demand has to be met. We do not order, we do not build, unless we have received orders for building our capacity. And we have the orders right now that I really expect, I believe that I said on the call, more than $ 25 billion in this next quarter. And that is, again, to match the demand. ,
– Safra Catz, Chief Executive Officer

This aggressive and customer-commitment-managed priecs indicate strong visibility in future contracted revenue, giving investors a rare level of confidence in its long-term sales growth. However, it also introduces close-term margin pressure and execution risks if the supply interval persists.

Data monopoly and AI competence make unique enterprise trenches

ORACLE’s database business – which is responsible for “storing most valuable data in the world” – the company’s chairman Lawrence Alison – acts as a foundation for the cloud migration of both customers and as the AI ​​data layer, is able to unification of large language models in every major public cloud (LLMS) in every major public cloud. The consumption of the autonomous database increased by 47% on the top of the last year’s 27% growth, while cloud database services reached $ 2.6 billion annually.

“Our database takes all your data, our applications take all your applications data, and provide that data to the most popular AI model. If you like chat, you use chats. If you like Groke, you use grockes. You use groc.
– Lawrence Alison, Chairman and Chief Technology Officer

The ability to operate AI on enterprise data safely in the multicloud environment distinguishes its stack, to be a secular beneficiary of its high-margin database franchise to be a secular beneficiary of global ai adoption.

Strategic mother-in-law portfolio booses, goal to adopt full-suit enterprise

Applications by strategic back-office mother-in-law (Software-e-Service) increased by 20% to $ 9.3 billion in the annual revenue quarter. Oracle continues to win market stake by offering end-to-end integrated product suites, which eliminates the need for multivender integration, and avails embedded data and analytics.

“So we are basically telling a lot of companies,” I am going to all Oracle. I am going to buy a complete Oracle suite for ERP, EPM, chain manufacturing. ” , [O]Ur intention is to give some of our biggest customers a-stop shop where they can buy a full suite from us to run their enterprise. And it relieves a lot of headache. Everything is in the same database. Everything comes with the same AI data platform with it. All are analytics. Everything is. You do not need to integrate the system. This has been our strategy for some time, and it is all coming together. Since a group of companies is successfully navigating this difficultly difficult transition from on-dimases to clouds, we are picking up many of their users. ,
– Lawrence Alison, Chairman and Chief Technology Officer

Oracle is expanding its long -term recurring revenue base by capturing customers in infection with heritage -based solutions.

looking ahead

The management directed the revenue of the financial year 2026 for at least $ 67 billion (up to 16%), while the RPO is estimated to grow more than 100%. Oracle hopes that fiscal 2027 and fiscal 2029 are also expected to cross their pre -declared revenue growth goals, and promised to offer more detailed long distance updates in Oracle Cloud World in October.