The current performance of Oracle hasn’t gone unnoticed, several investors regard it as a compelling reason to invest. The company’s shares have skyrocketed, rising 40% in the past month alone and exceeding 100% in two years.
The recent earnings announcement by Oracle reported $3.4 billion in net income during the quarter of fiscal year 2025, and the earnings per share exceeded the forecasts made by analysts. The revenue increased by 11% compared to last year, reaching 15.9 billion, and cloud revenue grew by 27%. This is an indicator of a good accumulation of future business, which gives investors confidence in the company’s long-term future.
However, the actual game changer is the fact that Oracle has announced a new cloud contract, which is likely to earn the company over $30 billion in annual revenue beginning in fiscal 2028. The news caused the stock to surge by 4%, showing the increasing power of Oracle in the cloud market. The fact that the company has collaborated with other market leaders, such as OpenAI, SoftBank, and IBM, also supports its standing in the world of artificial intelligence and cloud computing, which is projected to continue growing in the technology field in years to come.
The future outlook for Oracle is also healthy, with fiscal year 2026 expected to bring in a minimum of $66 billion in revenue. The analysts observe that earnings per share may decline slightly in the short term, but from a longer-term perspective, the prospects are encouraging, with an anticipated rise in annual returns of 20%. The analyst predictions show a medium buy rating, striking a balance between optimism and the fact that the stock has been running high.
