ORCL’s Cloud Database: Emerging as a Key Revenue Driver?

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Oracle Corporation (ORCL) reported a 31% year-over-year increase in cloud database services for the fourth quarter of fiscal 2025, bringing annualized revenues to $2.6 billion. The company is migrating customers to its Autonomous databases, which saw a 47% revenue growth, and anticipates exceeding $25 billion in capital expenditure for fiscal 2026 to support demand.

Oracle aims for approximately $52 billion in cloud services and license revenues for fiscal 2026, reflecting a 17.3% year-over-year growth. It faces significant competition from Amazon’s AWS and Microsoft’s Azure, both investing heavily in AI and cloud infrastructure.

Currently, ORCL’s shares have increased by 43.3% year-to-date, outperforming both the Zacks Computer and Technology sector and the Zacks Computer-Software industry. The Zacks Consensus Estimate for fiscal 2026 earnings stands at $6.71 per share, indicating an 11.28% rise from the previous year.

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