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San Francisco, June 11: In a move that’s already turning heads on Wall Street, Oracle Corporation wrapped up its fiscal year with stronger-than-expected earnings, driven largely by its cloud business. But the numbers tell only part of the story.
Oracle Delivers a Surprise—and a Message
The company reported $15.9 billion in revenue for the quarter ending May 31, nudging past analyst projections of $15.59 billion. Earnings per share landed at $1.70, beating expectations of $1.64. Not a blowout, but clearly strong enough to give investors confidence.
More importantly, Oracle’s net income rose to $3.43 billion, a modest but steady jump from last year’s $3.14 billion. It’s the kind of performance that suggests the company isn’t just keeping pace—it’s gathering speed.
That said, the real attention-grabber wasn’t the revenue. It was what CEO Safra Catz said next.
Cloud Is No Longer a Side Hustle
Oracle now expects its cloud infrastructure revenue to grow over 70% next year. That’s not a typo. In fact, it’s a significant step up from the 52% growth the company just posted this quarter.
“We’re seeing explosive demand,” Catz noted, pointing to an uptick in AI-related workloads across industries. Businesses are clearly hunting for infrastructure that can handle massive, high-performance computing—and Oracle’s betting big that its platform can deliver.
That confidence wasn’t lost on investors. Oracle’s stock jumped close to 8% in after-hours trading, erasing recent sluggishness and outpacing the S&P 500 for the year.
Partnerships with Purpose
Oracle’s cloud pivot isn’t just about selling server space. The company has struck some bold alliances, particularly in healthcare and AI.
Take its partnership with Cleveland Clinic and G42, a UAE-based artificial intelligence group. They’re working on an AI-powered platform designed to improve healthcare delivery—think faster diagnostics, smarter data usage, and more efficient care systems.
It’s early days, but the initiative signals Oracle’s intent to play in sectors that are complex, regulated, and long overdue for digital transformation.
A Surprise in the Chip Space
Another eyebrow-raising move came via SoftBank, which plans to acquire Ampere Computing—a chipmaker that Oracle helped fund—for $6.5 billion.
Ampere designs energy-efficient processors aimed at cloud workloads. If the deal closes, Oracle stands to benefit not just financially but strategically, as the chips could be used to bolster its own cloud performance.
Spending Big to Build Big
Oracle isn’t holding back on investment. It spent more than $21 billion this year—three times what it spent the year before. Most of that money is going into new data centers loaded with GPUs, which are critical for handling AI training and inference.
Some analysts have raised concerns about the pace of spending. But with Oracle’s contract backlog now topping $138 billion, the company argues it’s simply keeping up with demand.
“We’re adding capacity everywhere,” said Larry Ellison, Oracle’s co-founder. “And honestly, we’re still behind.”
How Analysts See It
The street is paying attention. Firms like Jefferies have bumped their price targets on the stock to $200, citing stronger visibility into Oracle’s cloud momentum. Others, like Citi, are watching closely but haven’t gone all in just yet.
Regardless, sentiment has shifted. Oracle is no longer being viewed as a legacy database giant trying to catch up. It’s becoming a legitimate contender in the modern cloud and AI stack.
Bottom Line: This Isn’t the Same Oracle
Oracle has always had big ambitions. But for a long time, it struggled to shake off the perception that it was lagging behind.
Now? It’s building fast, partnering smart, and making clear bets on where enterprise tech is heading. Whether it can keep up the pace—and turn all that investment into long-term margin growth—remains to be seen.
But one thing is clear: Oracle’s no longer playing defense.
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