Core Viewpoint - Oracle has shown strong performance over the past five years but is currently facing challenges, with a 7% drop in shares in 2025, despite a significant long-term growth potential in the cloud infrastructure market [1][2][3]. Financial Performance - Oracle reported an 8% year-over-year increase in revenue and a 4% rise in adjusted earnings, which fell short of Wall Street expectations [4]. - The company's remaining performance obligations (RPO) increased by 62% year-over-year to $130 billion, indicating strong future revenue potential [6]. - Oracle's management expects revenue growth to accelerate to 15% in the next fiscal year and 20% in fiscal 2027, with projected revenue of $66 billion for fiscal 2026 [10][11]. Market Opportunity - The demand for Oracle's cloud infrastructure, particularly for AI applications, is driving significant growth in its backlog, with $48 billion in new contracts added last quarter [7][9]. - Goldman Sachs estimates that the cloud infrastructure-as-a-service (IaaS) market will generate $580 billion in annual revenue by 2030, presenting a substantial opportunity for Oracle [8]. Capacity and Growth Projections - Oracle plans to double its data center capacity in the current fiscal year and triple it by the end of the next fiscal year, which is expected to support revenue growth [12][13]. - Assuming a 25% annual earnings growth rate, Oracle's earnings per share could reach $18.31 by fiscal 2030, with a potential stock price increase of 197% if the market values it at 25 times earnings [15][16].

Core Insights - Demand for AI hardware has surged significantly, with global AI spending projected to reach $337 billion in 2023 and expected to exceed $749 billion by 2028, benefiting companies like Oracle and Dell Technologies [2][3] Oracle - Oracle's cloud infrastructure revenue increased by 51% year over year in Q3 of fiscal 2025, significantly outpacing the overall revenue growth of 8% [5] - The company received $48 billion in bookings last quarter, leading to a 63% year-over-year increase in remaining performance obligations (RPO), totaling $130 billion [6][7] - Oracle plans to double its available power capacity within the calendar year and triple it by the end of the next fiscal year, anticipating a 15% revenue growth in the next fiscal year and 20% in fiscal 2027 [8][9] - The company is also set to benefit from the $500 billion Stargate Project, which could enhance its growth trajectory [10] Dell Technologies - Dell's infrastructure business saw a 29% year-over-year revenue increase to $43.6 billion, driven by the rising demand for AI servers [13] - The company sold $10 billion worth of AI servers last year and is targeting a 50% increase in AI server revenue for the current fiscal year, with a backlog of $9 billion [14][15] - Dell expects an 8% revenue increase in the current fiscal year, similar to the previous year, with potential for growth if PC sales improve [16][17] Comparative Analysis - Oracle's growth outlook appears stronger due to its aggressive capacity expansion and substantial revenue pipeline, while Dell's growth may depend on the recovery of its PC business [18][19] - Oracle's valuation is considered reasonable compared to the Nasdaq-100 index, suggesting a favorable investment opportunity [20]

Core Insights - Oracle Corporation has shown strong stock performance, with an 18.4% increase over the past year, outperforming the Zacks Computer and Technology sector and the S&P 500 [1] - The company's growth is attributed to its strategic shift towards cloud infrastructure and AI technologies, with Q3 fiscal 2025 revenues rising 6% year-over-year to $14.1 billion, primarily driven by cloud services [2] Financial Performance - Oracle's remaining performance obligations (RPOs) have increased significantly to $130 billion, reflecting a 63% rise in constant currency, indicating strong future revenue potential [3] - Cloud services and license support revenues grew by 10% to $11.0 billion, while cloud infrastructure revenues surged by 51% in constant currency [3] - The Zacks Consensus Estimate for Oracle's fiscal 2025 revenues is $57.12 billion, representing a year-over-year growth of 7.86%, with earnings estimated at $6.05 per share, reflecting an 8.81% increase [4] AI and Multi-Cloud Strategy - Oracle's positioning in the AI ecosystem is strengthening, with IaaS revenues increasing by 51% in constant currency and GPU consumption for AI training rising by 244% year-over-year [5] - The introduction of Oracle AI Agent Studio enhances Oracle's AI capabilities, allowing customers to manage AI agents across enterprise operations [6] - The multi-cloud strategy is gaining momentum, with Database@Azure service expanding to 14 regions and projected growth of 92% in multi-cloud database revenues from major tech companies [7] Investment Considerations - Despite positive growth metrics, Oracle's capital expenditures are expected to exceed $16 billion in fiscal 2025, which may pressure free cash flow [8] - Infrastructure expansion faces potential constraints due to component delays, which could limit revenue growth despite strong demand [9] - Oracle's current valuation, with an EV/EBITDA multiple of 19.92, is above the industry average, suggesting limited margin of safety for investors [10] Conclusion - Oracle holds a Zacks Rank 3 (Hold), indicating that current shareholders may consider holding their positions due to the company's strategic focus on high-growth markets [11] - Prospective investors may benefit from waiting for a more favorable entry point or clearer evidence of sustainable revenue growth and margin improvement [12]

Core Viewpoint - Oracle Commodity Holding Corp. and Cleantech Vanadium Mining Corp. have executed an Amended and Restated Royalty Agreement, streamlining the royalty structure and clarifying payment obligations related to the Gibellini Vanadium Mine Project [1][3]. Group 1: Amended Agreement Details - The Amended Agreement, dated March 3, 2025, modifies the original royalty agreement from August 25, 2021, under which Oracle holds a 2% royalty on the Gibellini Vanadium Mine Project [1]. - The Bureau of Land Management approved the Environmental Impact Statement for the Gibellini Vanadium Mine Project in October 2023, and the project has received many necessary state permits for construction [1]. Group 2: Key Terms of the Amended Agreement - The previously established vanadium pentoxide (V2O5) threshold price of USD 12/lb required to trigger royalty payments has been removed, allowing the 2% royalty to be payable without any threshold requirement [7]. - Oracle is required to pay Cleantech a total consideration of CAD 200,000, with CAD 75,000 already paid and CAD 125,000 due if V2O5 prices exceed USD 12/lb for 180 consecutive days [7]. - Cleantech and Nevada Vanadium Mining Corp. will guarantee all future royalty payments [7]. Group 3: Company Overview - Oracle Commodity Holding Corp. is a mining royalty company that holds royalties on several precious metal and critical mineral mining projects [4].

Oracle TodayORCLOracle$152.40 +2.95 (+1.97%) 52-Week Range$112.78▼$198.31Dividend Yield1.31%P/E Ratio37.26Price Target$179.20Add to WatchlistOracle's NYSE: ORCL Q1 2025 stock price pullback is an opportunity to buy this AI play at a deep discount. Down 25% from its highs, the stock trades at a value relative to its peers, earnings outlook, capital return, analysts' forecast and technical price action. Here’s a look at why. Get Oracle alerts:Oracle Is in a New Game; A Higher Multiple Is Warranted Oracle app ...

UK financial services organisation adopts Oracle Database@Azure and Oracle Exadata Cloud@Customer to accelerate its migration to the cloud, helping it to deliver new products and capabilities faster LONDON, March 20, 2025 /PRNewswire/ -- Oracle CloudWorld Tour -- Lloyds Banking Group, one of the UK's largest financial services organisations, has expanded its collaboration with Oracle to further strengthen its customer experience. Under a multi-year agreement, Lloyds is advancing its multicloud strategy by m ...

Oracle Exadata Database Service on Exascale Infrastructure now available Oracle Base Database Service on Oracle Database@Azure is coming soon AUSTIN, Texas, March 20, 2025 /PRNewswire/ -- Oracle today announced the general availability of Oracle Exadata Database Service on Exascale Infrastructure on Oracle Database@Azure. The Exascale deployment option eliminates the need to provision dedicated database and storage servers and gives customers the performance, reliability, and availability of Oracle Exadata ...

New Oracle AI Agent Studio empowers Oracle Fusion Cloud Applications customers and partners to easily create, extend, deploy, and manage AI agents and agent teams across the enterprise LONDON, March 20, 2025 /PRNewswire/ -- Oracle CloudWorld -- Oracle today announced Oracle AI Agent Studio for Fusion Applications, a comprehensive platform for creating, extending, deploying, and managing AI agents and agent teams across the enterprise. Part of Oracle Fusion Cloud Applications Suite, the new AI Agent Studio p ...

The Greek flag carrier taps Oracle Fusion Cloud Customer Experience (CX) to personalize traveler experiences, boost revenue, and increase customer loyalty LONDON, March 20, 2025 /PRNewswire/ -- Oracle CloudWorld — AEGEAN, the Greek flag carrier, is using Oracle Fusion Cloud Customer Experience (CX) to support its mission to deliver a personalized experience and offering to every traveler. With an integrated suite of AI-powered cloud applications, AEGEAN has been able to create a strong foundation of custome ...

New capabilities within Oracle Cloud HCM enable HR teams, managers, and employees to drive engagement, increase productivity, and enhance company culture  LONDON, March 20, 2025 /PRNewswire/ -- Oracle CloudWorld -- Oracle has added new employee communications and event management capabilities to the Oracle ME employee experience platform within Oracle Fusion Cloud Human Capital Management (HCM). The latest updates to the Oracle Fusion Cloud Communicate solution within Oracle ME enable HR teams to boost empl ...