IBM and Oracle are key players in the hybrid cloud infrastructure and database services sectors. IBM’s cloud services and solutions support enterprise digital transformation, while Oracle focuses on enterprise-grade database and middleware services. As of fiscal 2025, Oracle’s Infrastructure-as-a-Service revenue surged 51% to $10.2 billion, with total cloud services increasing 24% to $24.5 billion. IBM’s sales and earnings per share (EPS) estimates for 2025 imply a year-over-year growth of 5.5% and 6%, respectively, while Oracle projects 16.1% and 11.3% growth for the same metrics.
Over the past year, IBM’s stock increased 62.9%, while Oracle’s rose 47.5%. IBM trades at a forward price/earnings ratio of 25.11, compared to Oracle’s 31.27. Both companies currently carry a Zacks Rank of #3 (Hold). While Oracle shows stable growth, IBM is highlighted as a more attractive investment due to its better price performance and valuation metrics.
