Oracle just dropped earnings that made Wall Street lose its mind—and for good reason. The stock rocketed 15% after the company revealed it’s basically printing money from cloud services. But here’s the thing: the real story isn’t what Oracle did last quarter. It’s what they’re about to do.
Let’s start with the numbers, because they’re actually impressive. Oracle pulled in $15.9 billion in revenue, beating expectations by $400 million. Net income climbed 9% year-over-year to $3.4 billion. Yawn, right? Except here’s where it gets spicy: cloud services now account for 74% of Oracle’s revenue, and that division is growing like a teenager on a growth spurt.
Cloud infrastructure revenue jumped 52% to $3 billion. Cloud applications grew 12% to $3.7 billion. But the real kicker? Multi-cloud database revenue—basically Oracle’s partnerships with Amazon, Google, and Azure—exploded 115%. That’s not a typo. One hundred and fifteen percent.
CEO Safra Catz basically said, “Yeah, last year was great, but buckle up.” She’s projecting total cloud growth will accelerate from 24% in fiscal 2025 to over 40% in fiscal 2026. Cloud infrastructure alone is expected to hit 70% growth. For context, that’s the kind of growth rate you see in startups, not companies that have been around since 1977.
The secret sauce? Oracle’s been making some seriously smart moves. They partnered with OpenAI on the $500 billion Stargate initiative to build AI data centers across the U.S. They’re also working with the Cleveland Clinic and G42 on an AI healthcare platform. These aren’t just press releases—they’re actual revenue drivers.
Then there’s the multi-cloud play. Oracle currently has 23 multi-cloud data centers live with 47 more being built over the next year. They expect triple-digit growth in multi-cloud revenue to continue. Meanwhile, their own Oracle data centers grew revenue 104% last year, and they’re planning to build 30 more.
Larry Ellison, still running the show as chairman and CRO, summed it up perfectly: “OCI revenue growth rates are skyrocketing—so is demand.” Translation: they can barely keep up with how fast people want to buy their stuff.
Wall Street got the memo. Deutsche Bank raised its price target by $40 to $240 per share. Bank of America bumped theirs by $64 to $220. About a dozen other analysts followed suit with their own upgrades.
Here’s the kicker: Oracle’s trading at a forward P/E of 25. That might sound pricey until you remember they’re growing cloud infrastructure at 70% and expecting their pipeline to double. The stock is up 20% year-to-date and roughly 43% over the past year, but analysts think there’s more runway ahead.
The bottom line? Oracle isn’t your dad’s enterprise software company anymore. It’s a cloud infrastructure powerhouse that’s riding the AI wave while most of its competitors are still figuring out which way is up. If you’ve been sleeping on Oracle, this might be the wake-up call.
