Oracle Corporation (ORCL) shares surged 7.67% in after-hours trading on Wednesday following the release of its fiscal 2025 fourth quarter financial results that exceeded analyst expectations. The enterprise software giant reported robust growth in its cloud business and provided an optimistic outlook for the coming fiscal year.
For the fourth quarter, Oracle posted total revenue of $15.9 billion, surpassing the analyst consensus estimate of $15.59 billion. The company's adjusted earnings per share came in at $1.70, beating the expected $1.64. Notably, Oracle's cloud revenue, which combines Infrastructure as a Service (IaaS) and Software as a Service (SaaS), increased by 27% year-over-year to $6.7 billion. The Cloud Infrastructure (IaaS) segment showed particularly strong growth, soaring 52% to reach $3.0 billion.
Looking ahead, Oracle's CEO Safra Catz provided a bullish outlook for fiscal year 2026, stating, "We expect our total cloud growth rate — applications plus infrastructure — will increase from 24% in FY25 to over 40% in FY26." This optimistic forecast, coupled with the company's strong quarterly performance, appears to have fueled investor enthusiasm, driving the stock's significant after-hours rally.
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