Shares of Oracle (ORCL 1.22%) had been on the transfer final month because the legacy tech big greatest recognized for database software program continues to impress traders with its progress in cloud infrastructure, displaying it is capitalizing on the bogus intelligence (AI) increase.
Oracle delivered one other robust earnings report, and mentioned in a submitting late within the month that fiscal 2026 is off to a powerful begin. The corporate additionally earned a slew of analyst upgrades, serving to to propel the inventory increased.
In keeping with information from S&P International Market Intelligence, the inventory completed the month 32% increased. As you’ll be able to see from the chart under, a lot of the inventory’s features got here from its post-earnings surge within the second week of the month.
ORCL information by YCharts
Oracle impresses the market once more
Oracle continues to be a lot smaller than the large three cloud computing gamers (Amazon, Alphabet, and Microsoft), however it’s rising sooner than them.
In its fiscal fourth quarter, which ended on Could 31, the corporate reported 52% progress in cloud infrastructure to $3 billion, up 52% from the 12 months earlier than because it continued to see robust AI-related demand.
General income was up 11% to $15.9 billion, reflecting slower progress in areas like licensing, {hardware}, and companies. That beat the $15.59 billion consensus.
On the underside line, adjusted earnings per share rose from $1.63 to $1.70, which beat estimates at $1.64.
What was extra spectacular and indicative of future progress was that its remaining efficiency obligations (RPO), a proxy for backlog, jumped 41% to $138 billion.
Administration additionally sees progress accelerating into 2026, calling for general income progress of 15% to greater than $67 billion, forward of the consensus at $65.36 billion. CEO Safra Catz mentioned, “FY25 was an excellent 12 months — however we imagine FY26 might be even higher as our income progress charges might be dramatically increased.”
Picture supply: Getty Photographs.
Can Oracle maintain climbing?
Whereas the inventory was principally flat over the rest of June, the corporate did have some excellent news to share towards the top of the month, saying in a submitting that it was is “off to a powerful begin in FY26,” noting that its multi-cloud income continues to develop at over 100%.
Oracle’s valuation has elevated because the inventory value soared, however these features appear nicely deserved because the AI tailwinds are robust. The inventory appears to be like nicely positioned for future progress.
Suzanne Frey, an govt at Alphabet, is a member of The Motley Idiot’s board of administrators. John Mackey, former CEO of Complete Meals Market, an Amazon subsidiary, is a member of The Motley Idiot’s board of administrators. Jeremy Bowman has positions in Amazon. The Motley Idiot has positions in and recommends Alphabet, Amazon, Microsoft, and Oracle. The Motley Idiot recommends the next choices: lengthy January 2026 $395 calls on Microsoft and brief January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure coverage.
