Oracle stock rises on strong Q4 results, Barclays maintains rating
Investing.com
Published Jun 11, 2025 05:28PM ET
Oracle (NYSE:ORCL), with its impressive market capitalization of $495.4 billion, saw its shares move higher following the release of its fourth-quarter fiscal 2025 results, which exceeded consensus expectations across all key metrics. According to InvestingPro data, the stock has delivered a strong 43.97% return over the past year. Barclays analyst Raimo Lenschow reiterated an Overweight rating with a $202.00 price target on the stock.
The technology company, which generated $55.78 billion in revenue over the last twelve months, delivered 11% year-over-year growth in constant currency during the quarter, surpassing both its guidance range of 9-11% and consensus estimates of 9.3%. Currency fluctuations provided a slight benefit to the results. The fourth quarter, traditionally Oracle's strongest period, saw better-than-expected performance in both license and hardware segments, maintaining its position as a prominent player in the software industry.
Oracle's cloud business performed slightly above expectations, with Fusion SaaS growth standing out at 22%. The company reported impressive remaining performance obligations (RPO) growth of 40% year-over-year, with management indicating even stronger RPO growth exceeding 100% for fiscal year 2026.
Application ecosystem recurring revenue grew 8% in constant currency for the fourth quarter, improving from 6% in the third quarter and 7% in the second quarter. Infrastructure ecosystem recurring revenue showed continued momentum, growing 19% in constant currency compared to 18% in the previous quarter.
Oracle management provided an optimistic outlook for fiscal year 2026, projecting "dramatically higher" top-line growth rates. The company expects total cloud growth to accelerate to 40% year-over-year in fiscal 2026, up from 24% in fiscal 2025, while cloud infrastructure growth is forecast to exceed 70%, compared to approximately 50% in the just-completed fiscal year. With a solid dividend history spanning 17 consecutive years and a recent dividend growth of 25%, Oracle continues to reward shareholders. For deeper insights into Oracle's valuation and growth prospects, including 15+ additional ProTips, check out the comprehensive research available on InvestingPro .
In other recent news, Oracle has been the focus of several analyst updates and projections. Jefferies raised its price target for Oracle to $200, citing stable demand in the fiscal fourth quarter and highlighting expected growth in Revenue Performance Obligations. JMP reiterated a Market Perform rating with a $205 price target, noting positive industry checks ahead of Oracle's upcoming earnings report. JPMorgan maintained a Neutral rating with a $135 target, acknowledging Oracle's achievements in AI infrastructure but expressing caution over its high valuation. Cantor Fitzgerald kept an Overweight rating with a $175 target, emphasizing Oracle's success in migrating workloads to its cloud infrastructure and its leadership in AI infrastructure. BMO Capital also raised its price target to $200, projecting double-digit growth in operating income for fiscal year 2027 despite anticipated lower operating margins due to depreciation pressures. These developments reflect ongoing interest and varying perspectives on Oracle's market position and growth potential.
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Written By: Investing.com
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