Oracle’s cloud revenue increased 27% from 2025 Q4 in accounting fiscal year

trust (Orcl -0.64%)) On June 11, the company reported the results of the fourth quarter of fiscal year 2025, surpassing the previous guidelines by recording $ 15.9 billion (11%increase) and annual sales of $ 57.4 billion (9%increase). In addition, the company’s sales target for 2026 fiscal year was raised to more than $ 67 billion, predicting 16% growth. The company emphasized $ 6.7 billion in cloud sales, up 27%, and RPO (RESTER RPO), which has risen by 41%, is expected to grow more than 70% in the cloud infrastructure (IAAS) at $ 138 billion, up 41%.

Unprecedented cloud demand induces record CAPEX and supply constraints.

In the quarter, which ended on May 31, Oracle’s cloud infrastructure service reached almost $ 12 billion annual sales, but there was not enough supply to meet rapid demand. As an effort to build footprints to use the inconsistency, capital expenditures raised $ 9.1 billion, resulting in a $ 2.9 billion negative cash flow. The company is expected to exceed $ 25 billion in the 2026 fiscal fiscal year, exceeding $ 25 billion from $ 21.2 billion in the 2025 fiscal year, and is devoted to profit generation data center equipment.

“(W) E is as soon as possible as possible. I think $ 25 billion will be restrained next year. So we will be fulfilled. We do not order, and we believe that we have actually more than $ 25 unless we actually command our capacity to be built.
-Safra catz, CEO

This aggressive and customer commission -oriented CAPEX distribution shows a strong visibility of future contract imports, so investors are rarely reliable for long -term sales growth. However, if the supply delay persists, short -term margin pressure and risk of execution are introduced.

Data monopoly and AI support creates unique enterprise hats

Lawrence Ellison, chairman of the company, is responsible for storing “most valuable data in the world,” Oracle’s database business is the foundation for customer’s cloud migration and AI data classes that allow them to integrate exclusive enterprise data in all major public clouds. Do it. Autonomous database consumption revenue increased by 47% in 27% growth last year, while cloud database services amounted to $ 2.6 billion annually.

“Our database gets all the data and the application gets all the application data so that the data can be used for the most popular AI models. If you like CHATGPT, use CHATGPT. If you like Grok, we use Grok.In Oracle Cloud, we use our own data and models to use our own data and model It is not dramatic in using the enterprise.
Lawrence Ellison, Chairman and Chief Technology Officer

Oracle’s AI, which operates AI in enterprise data in the multicloud environment, differentiates the stack and deploys expensive database franchises as secular beneficiaries of global AI.

Strategic SaaS portfolio is accelerated and aims to adopt a full sweet enterprise.

The annual revenue of strategic back office SaaS (Software-AS-A-SERVICE) applications is $ 9.3 billion, up 20% in quarter. Oracle provides end -to -end vertical integrated product suite to remove the need for multi -vendor integration and keep the market share by utilizing embedded data and analysis.

“So many companies will basically say, ‘I will go to all Oracle. ERP, EPM, we will buy a complete Oracle suite for chain manufacturing.’ (O) Our largest customer can buy all the suite from the premises to the cloud, and we choose a lot of users.
Lawrence Ellison, Chairman and Chief Technology Officer

Oracle is expanding its long -term repetitive revenue base by switching from legacy on premises solutions and integrating heterogeneous suppliers.

I am looking for it in the future

Executives are expected to increase at least $ 67 billion (16%increase) in the 2026 fiscal year, while RPOs are expected to increase more than 100%. Oracle also expects to surpass the revenue growth targets specified before the 2027 and 2029 fiscal year, and promised to provide more long -range updates in Oracle Cloud World in October.