Latest news with #MultiCloud
Time of India
02-07-2025
- Business
- Time of India
Oracle stock surges: Hits record high on $30 billion cloud deal; revenue to flow from FY28
Representative image Oracle Corp's stock soared 4% on Monday to a record $218.63 after a regulatory filing revealed a major cloud computing agreement that could add more than $30 billion in annual revenue beginning fiscal 2028. The deal, which was disclosed ahead of a company-wide meeting, marks a significant milestone in Oracle's pivot to AI infrastructure and cloud services. CEO Safra Catz, in a Securities and Exchange Commission (SEC) filing, said Oracle is 'off to a strong start in FY26,' adding, 'Our MultiCloud database revenue continues to grow at over 100%, and we signed multiple large cloud services agreements including one that is expected to contribute more than $30 billion in annual revenue starting in FY28,' reported CNBC. Oracle did not name the customer, but speculation is high that it may be tied to OpenAI and SoftBank's $500 billion Stargate project, which aims to create a vast global network of AI data centres. Founder Larry Ellison had earlier hinted in March that Oracle expected to finalise a deal with Stargate 'fairly soon.' The $30 billion figure is nearly triple the $10.3 billion Oracle generated from its data centre operations in FY25, reported Financial Times. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Sensação de queimação nos pés? Insira essa receita ao acordar G!Saú Undo The deal won't impact Oracle's FY26 guidance, but it cements its growing clout in the cloud and AI sectors. Analysts believe the revenue surge reflects long-term demand for computing infrastructure amid supply constraints at competitors like Microsoft. As per Financial Times, Oracle is spending around $40 billion on Nvidia's high-performance chips to power new data centres for OpenAI in Abilene, Texas. Although Stargate is 'still in formation,' Catz told investors that the company had already booked some revenue from OpenAI, with more coming from other contracts. Oracle's stock has jumped over 33% in 2024, buoyed by strong earnings, cloud expansion, and strategic AI tie-ups. These include a recent partnership with IBM and the Stargate venture. Earlier this year, Oracle also inked a cloud services deal with Chinese e-commerce giant Temu, adding further weight to its global ambitions. Having been slow to enter the cloud computing market, Oracle now finds itself among the top beneficiaries of surging demand for AI processing power. With this blockbuster cloud deal, the Austin-based tech giant appears well-positioned to capitalise on the next wave of digital transformation. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Yahoo
02-07-2025
- Business
- Yahoo
Why Oracle Stock Is Surging Today
Oracle is rising today after the company disclosed new growth figures and contract wins. The company says that MultiCloud revenue is still more than doubling annually, and it landed a new contract that will be worth more than $30 billion in annual sales. The stock is also rising thanks to positive coverage from analysts today. 10 stocks we like better than Oracle › Oracle (NYSE: ORCL) stock is seeing big gains in Monday's trading. The company's share price was up 4.6% as of 1:40 p.m. ET, amid a 0.2% gain for the S&P 500 (SNPINDEX: ^GSPC) and a 0.1% gain for the Nasdaq Composite (NASDAQINDEX: ^IXIC). The stock had been up as much as 8.6% earlier in the day. Oracle's valuation is climbing higher today following new guidance from management and bullish coverage from analysts. The reaction from investors has pushed the company's share price to a new all-time high. Oracle shared some major details about its outlook in the current fiscal year through a filing with the Securities and Exchange Commission (SEC), and investors are bidding up its stock in response. Through the filing, CEO Safra Catz said that the business was off to a strong start in its 2026 fiscal year, and noted that revenue for its MultiCloud database was continuing to grow at a rate greater than 100%. Even better, the company has recently inked a new deal that is expected to generate more than $30 billion in sales starting in its 2028 fiscal year. Before Oracle's SEC filing was made and before the market opened this morning, Stifel raised its rating on Oracle stock from hold to buy. Brad Reback, the firm's lead analyst on the stock, also raised his one-year price target on Oracle from $180 per share to $250 per share and pointed to ramping up capital expenditures and remaining performance obligations as signs that the company was making good on its targets in the cloud services space. Later in the day, Barclays weighed in with its own fresh coverage on the stock. The investment firm thinks that the growth and contract news contained in today's filing with the SEC will help allay investor concerns that the business won't be able to hit management's growth targets. The firm maintained an overweight rating on the stock and a one-year price target of $221 per share. As of this writing, Barclays' price target implies additional upside of just 0.5%. Meanwhile, Stifel's target suggests upside of roughly 14%. A strong rally has pushed the company's valuation to a new high, but big wins on the cloud front suggest that Oracle could still deliver wins for long-term investors. Before you buy stock in Oracle, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Oracle wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Oracle. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy. Why Oracle Stock Is Surging Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
02-07-2025
- Business
- Miami Herald
Oracle CEO sends blunt 2-word message on its business
How did renting computational power and storage - and making maintaining someone's services easier via the internet - become "running things in the cloud"? The person who coined that term was a marketing genius, but tracing the origin of the term is difficult. Notwithstanding the nonsensical term, switching to the cloud became easier for most companies than setting up and maintaining network infrastructure themselves. Switching from an on-premises server to one "in the cloud" has some upsides. If you don't know how many servers you need and how powerful they have to be, it is much easier to use the cloud. Related: Analyst sends Alphabet warning amid search market shakeup As you develop your service and get more users, you can scale up and add more CPU power or storage with just a couple of clicks, or even automatically. And you don't have to think about power outages and replacing broken hardware, either. There are downsides, though, including data security concerns, dependence on a good internet connection, and the fact that some setups, if they automatically scale, can leave you with a very large bill, due to an unexpected surge in demand for your services. Big businesses have large and complex databases and need to run somewhere, too. If the company uses Oracle's database solution, it is much easier to use Oracle Cloud Infrastructure (OCI). Perhaps this is the main driver of Oracle's growth in the cloud computing space. Oracle Corporation (ORCL) offers a special service it calls MultiCloud. This service makes connecting different cloud infrastructures easier and enables you to run OCI Oracle Database services in any cloud. That makes mixing cloud providers easier. You can combine Google Cloud and/or Amazon Web Services with Oracle's offerings. Oracle reported its fiscal 2025 Q4 earnings results on June 11. During the earnings call, CEO Safra Catz said, "Our infrastructure business was the next area to move to the cloud. We made engineering decisions that were much different from the other hyperscalers and that were better suited to the needs of enterprise customers, resulting in lower costs to them and giving them deployment flexibility." Related: Analysts raise Micron stock price target, send warning Catz added that she expects OCI revenue to grow over 70% this current year. Other Oracle earnings report highlights included: Total revenue was $15.9 billion, up 11% earnings per share of $1.19 compared to $1.11 in Q4 fiscal 2024. Cloud revenue of $6.7 billion, up 27% YoY. GAAP net income was $3.4 billion, up 9% YoY. "MultiCloud database revenue from Amazon, Google, and Azure grew 115% from Q3 to Q4," said Oracle Chairman and CTO Larry Ellison. He noted that the company has 23 MultiCloud datacenters, and 47 more will be built within a year. Triple-digit MultiCloud revenue growth is expected to continue in fiscal year 2026, added Ellison. Oracle submitted a filing to the SEC on June 30. In it, Catz offered the following message, including two critical words that conveyed confidence in the company's performance. "Oracle is off to a strong start in [fiscal year 2026]," she said. "Our MultiCloud database revenue continues to grow at over 100%, and we signed multiple large cloud services agreements, including one that is expected to contribute more than $30 billion in annual revenue starting in [fiscal year 2028]," Catz added. The company revealed in June that AMD Instinct MI355X GPUs will be available on OCI. These offerings are expected to provide more than two times better price-performance for large-scale AI training and inference workloads than the previous generation. More Tech Stocks: Amazon tries to make AI great again (or maybe for the first time)Veteran portfolio manager raises eyebrows with latest Meta Platforms moveGoogle plans major AI shift after Meta's surprising $14 billion move Yet counting on AI isn't enough. The company also shared in June that it will launch something that is a bit of an oxymoron: an air-gapped cloud offering. As noted previously, the main problem with the cloud is data security, and not every organization can allow its data to be accessible via the internet. The company is calling its new offering Oracle Compute Cloud@Customer Isolated. With a target audience of governments and regulated industries, it is a sovereign compute cloud service that can be disconnected from the internet. According to the company, the service can be deployed in a single rack and scaled up as needed. It is expected to be available globally later this year. It's almost a bit humorous that "the cloud" can be repackaged as an on-premises system, even when handled by a third party. But since Oracle seems to be successfully differentiating itself with its special offerings, perhaps the air-gapped cloud will be a hit, much like the MultiCloud. Related: Microsoft makes huge change to Windows The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
01-07-2025
- Business
- Yahoo
Oracle (ORCL) Stock Hits an All-Time High Amid Increased Cloud Demand
Optimism surrounding Oracle's ORCL cloud and AI infrastructure endeavors pushed its stock to an all-time high of $228 a share on Monday. This comes as the enterprise cloud leader has secured lucrative contracts thanks to its momentum in AI, with many analysts starting to raise their price targets for Oracle stock. That said, let's see if now is a good time to buy ORCL for higher highs. Although the identity of the customer was not disclosed, Oracle stock spiked +4% on Monday following news of a regulatory filing in which the company had signed a massive $30 billion annual cloud services deal. Given the scale and nature of the contract, many analysts believe the client could be a major AI player like OpenAI. To that point, Oracle and OpenAI have formed a strategic partnership, collaborating on a massive AI training hub in Texas. As part of a broader $500 billion AI infrastructure initiative, which also includes Nvidia NVDA, Oracle is the venture's core infrastructure provider. Deemed Project Stargate, Oracle will be helping to expand OpenAI's compute capacity beyond Microsoft MSFT Azure. Embarking on a multi-cloud strategy, Microsoft and OpenAI are using Oracle Cloud Infrastructure (OCI) to integrate Azure's AI cloud platform to produce enhanced training for large-language models (LLMs). With demand booming for OCI, Oracle's MultiCloud revenue is reportedly growing at over 100% in correlation with the need to support generative AI workloads such as OpenAI's ChatGPT. Reporting its fiscal fourth-quarter results earlier in the month, Oracle's Q4 sales stretched 11% year over year to $15.9 billion, pinpointing that its MultiCloud database revenue spiked 115% sequentially, driven by partnerships with Amazon's AMZN AWS and Alphabet's GOOGL Google Cloud, along with Microsoft Azure. Following today's rally, ORCL is up +30% in 2025. More impressive, Oracle stock is now sitting on +200% gains in the last three years to vastly outperform the broader indexes and its Zacks Computer-Software Market's +95%, which includes Microsoft stock at +90%. Image Source: Zacks Investment Research Furthermore, despite Oracle's blazing stock performance, at 31.3X forward earnings, ORCL still trades beneath Microsoft's 37.1X and their Zacks Computer-Software Industry average of 35.9X. Image Source: Zacks Investment Research Citing strong cloud momentum, AI infrastructure growth, and a bullish outlook for Oracle's current fiscal year 2026, several financial firms have upped their price target for ORCL shares to $250, including analysts at Stifel, UBS, and Guggenheim. At the moment, Oracle stock currently lands a Zacks Rank #3 (Hold). However, it wouldn't be surprising if a buy rating is on the way and perhaps higher highs for ORCL, as earnings estimates for Oracle are likely to rise in correlation with the announcement of its lucrative cloud services deal. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Oracle Corporation (ORCL) : Free Stock Analysis Report Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-07-2025
- Business
- Yahoo
Wall Street Eyes $250 for Oracle, But Could ORCL Stock Climb Even Higher?
Cloud infrastructure and IT solutions provider Oracle (ORCL) has been one of the top performers in the technology sector over the past few months, with its stock price surging by nearly 55% in the last three months. The solid momentum in its business indicates that the rally will continue in the foreseeable future. Closing out its fiscal 2025 on a high note, Oracle delivered robust fourth-quarter results, marked by double-digit revenue growth. Management remains upbeat and expects the revenue growth rate to accelerate in fiscal 2026, setting the stage for further upside in ORCL stock. Elon Musk's Tesla Makes History With 'First Time That a Car Has Delivered Itself to Its Owner' This Defense Stock Could Be the Next Palantir. Should You Buy It Now? Cathie Wood Is Pounding the Table on AMD Stock. Should You Buy Shares Now? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! The company's total revenue surged, driven by significant increases in cloud services and license support. Cloud infrastructure services, in particular, saw exceptional demand, with contracted noncancelable bookings suggesting a projected revenue growth of over 70% in FY26 for Oracle Cloud Infrastructure (OCI). Oracle's focus on cloud applications, including ERP, financials, and supply chain management, positions it as a leader in enterprise solutions. The incorporation of over 100 AI agents enhances their suite of offerings, promising accelerated growth in cloud applications in the upcoming year. Moreover, Oracle's Autonomous Database and AI data platform are meeting the evolving needs of AI-driven enterprises. Further, the flexibility to run databases across multiple cloud environments strengthens its appeal to a diverse customer base. Looking ahead, Oracle anticipates its revenue to exceed $67 billion for FY26, reflecting a robust 16% year-over-year increase. With a substantial $138 billion in remaining performance obligations (RPO) and a growing cloud backlog, Oracle remains poised for sustained growth and leadership in the enterprise cloud solutions market. Given this positive backdrop, the highest price target for Oracle stock is $250, representing about 14% upside potential from current levels. However, given the solid momentum in its business, Oracle stock can rise even further. For instance, management has set big expectations for its cloud operations. Oracle anticipates its total cloud revenue (spanning both applications and infrastructure) will accelerate from 24% growth in fiscal 2025 to over 40% in 2026. Notably, its Cloud Infrastructure growth is projected to surge from 50% to more than 70%. Meanwhile, the company expects its remaining performance obligations to more than double in the same period, signaling robust demand for its services. CEO Safra Catz highlighted in a recent filing that Oracle is off to a strong start in FY26. The company's MultiCloud database business is growing at over 100%, indicating that demand for flexible, scalable cloud solutions is rising rapidly. Oracle has also secured several significant cloud service contracts, one of which is expected to generate more than $30 billion annually starting in fiscal 2028. Oracle's MultiCloud offering enables customers to integrate Oracle's cloud products with services from major competitors, such as Microsoft (MSFT) Azure, Amazon's (AMZN) AWS, and Alphabet's (GOOGL) Google Cloud, providing enterprises with the flexibility to optimize cost, performance, and functionality. Revenue from MultiCloud database services delivered via these platforms surged 115% from Q3 to Q4. Oracle currently operates 23 multi-cloud data centers, with another 47 under construction over the next 12 months. Triple-digit revenue growth in this segment is expected to continue into FY26. The company's Cloud@Customer offering, which brings Oracle's cloud infrastructure directly to a customer's data center, is also gaining traction, with revenue up 104% year-over-year. Oracle operates 29 dedicated Cloud@Customer datacenters, with plans to add 30 more in FY26. Meanwhile, consumption revenue from OCI grew 62% in the most recent quarter, with expectations of even faster growth ahead. Oracle shares have already seen a strong rise, and Wall Street's highest price target of $250 points to even more potential gains. However, with solid earnings, a fast-growing cloud business, expanding AI capabilities, and a strong multi-cloud strategy, Oracle stock could climb even higher than the Street's high price target. On the date of publication, Amit Singh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
