Latest news with #OracleAutonomousDatabase
Yahoo
6 days ago
- Business
- Yahoo
Should Oracle Stock be in Your Portfolio Post Q4 Earnings?
Oracle ORCL delivered impressive fourth-quarter fiscal 2025 results that exceeded expectations, but investors should exercise caution despite the company's accelerating cloud momentum. (Read More: Oracle Stock Jumps on Q4 Earnings Beat, Upbeat Cloud Forecast)The enterprise software giant's transformation into an AI-powered cloud infrastructure leader is gaining traction, yet current valuations and execution challenges suggest that a measured approach may be prudent. Oracle reported total revenues of $15.9 billion for the quarter ending May 31, 2025, representing 11% year-over-year growth. The standout performance came from cloud infrastructure services, which surged 52% to $3 billion, building on the previous year's 42% growth rate. Cloud applications revenues grew 12% to $3.7 billion, while total cloud revenues reached $6.7 billion, up 27%.The company's Remaining Performance Obligations hit $138 billion, marking a substantial 41% increase that provides visibility into future revenue streams. This massive contracted backlog, combined with management's guidance for fiscal 2026 total revenues exceeding $67 billion, demonstrates Oracle's strong positioning in the AI-driven cloud provided robust guidance for fiscal 2026, expressing strong confidence in accelerating growth rates. The company expects total cloud revenues (applications plus infrastructure) to grow more than 40% in cc, representing a significant acceleration from the 24% growth achieved in fiscal 2025. The Zacks Consensus Estimate for fiscal 2026 revenues is currently pegged at $66.73 billion, suggesting growth of 16.25% from the year-ago quarter's reported figure. The consensus mark for fiscal 2026 earnings is pegged at $6.68 per share, up 0.6% over the past 30 Oracle faces significant execution challenges. The company's capital expenditure requirements are escalating rapidly, with management projecting more than $25 billion in fiscal 2026, up from $21.2 billion in fiscal 2025. This substantial investment is necessary to meet overwhelming demand that currently exceeds supply capacity, but it pressures near-term profitability and free cash flow generation. Oracle Corporation price-consensus-chart | Oracle Corporation Quote Oracle's strategic positioning around artificial intelligence and database modernization is proving effective. The company's multi-cloud database revenues grew 115% from the third quarter to fourth quarter, with 23 multi-cloud datacenters operational and 47 more under construction. The Oracle Autonomous Database consumption revenues increased 47% year over year, while cloud database services overall posted 31% partnerships with Advanced Micro Devices AMD and NVIDIA NVDA strengthen Oracle's AI infrastructure capabilities. The collaboration with AMD introduces MI355X GPUs offering up to 2.8 times higher throughput, while the NVIDIA partnership brings GB200 NVL72 systems capable of scaling to 131,072 GPUs. These alliances position Oracle to capture the growing demand for AI training and inference company's database-centric approach to AI provides a competitive moat. Oracle's latest database version, Oracle 23 AI, functions as an AI data platform that can make enterprise data immediately available to popular large language models while maintaining data privacy. This capability becomes increasingly valuable as enterprises seek to leverage AI with their proprietary data sets. Oracle's impressive growth trajectory comes with a premium valuation that requires flawless execution. The stock trades at elevated multiples relative to traditional enterprise software peers, reflecting high expectations for continued cloud infrastructure acceleration. Any disappointment in execution or competitive pressures could lead to significant valuation trades at a 3-year EV/EBITDA multiple of 26.7x, substantially above the Zacks Computer-Software industry average of 19.24x. This premium valuation suggests that investors have already priced in exceptional future growth — growth that Oracle is increasingly struggling to deliver with modest revenue increases of just 6% year over year (8% in constant currency). Image Source: Zacks Investment Research The competitive landscape remains challenging, with Amazon AMZN-owned Amazon Web Services, Microsoft Azure, and Google Cloud maintaining substantial scale advantages in core infrastructure services. While Oracle's specialized focus on database workloads and AI provides differentiation, these hyperscale cloud providers possess greater financial resources and broader service of Oracle have gained 29.2% so far this year, outperforming the Zacks Computer and Technology sector's growth of 1.1%. Shares of Microsoft have returned 12.7% year to date, while Amazon and Google shares have lost 3.3% and 7.7%, respectively. Image Source: Zacks Investment Research Oracle's success depends heavily on enterprises' willingness to adopt multi-cloud strategies and migrate database workloads to cloud environments. Any slowdown in this migration or increased competitive pressure on pricing could impact growth trajectories and margin expectations. Given Oracle's strong fundamental position but current valuation concerns, existing shareholders should maintain their positions while new investors might consider waiting for a more attractive entry point. The company's AI-driven growth story is compelling, and the massive contracted backlog provides revenue visibility, but the premium valuation leaves little room for execution upcoming fiscal 2026 will be critical in demonstrating Oracle's ability to convert its record backlog into revenues while managing the substantial capital investment requirements. Investors should monitor quarterly progress on cloud infrastructure growth rates, free cash flow generation, and competitive transformation into a leading AI infrastructure provider appears on track, but the current stock price reflects much of this optimistic scenario. Patient investors may find better risk-adjusted opportunities by waiting for potential market volatility or company-specific challenges that could provide more attractive entry points throughout fiscal 2026. Oracle currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
01-05-2025
- Business
- Yahoo
Oracle (NYSE:ORCL) Powers Sphere's AI Platform With Database 23ai On Cloud Infrastructure
Oracle saw its stock rise by 7% last week, mirroring the broader market which advanced by 3%. The company's recent collaboration with Sphere to utilize Oracle Database 23ai on the Oracle Autonomous Database could have bolstered investor confidence, enhancing perceptions of Oracle's capabilities in AI-driven workflow automation. Meanwhile, widespread optimism in the broader tech sector, highlighted by strong earnings from major tech giants like Microsoft and Meta, certainly supported the surge in Oracle's share price. The overall positive sentiment from the market's focus on AI investment likely amplified Oracle's upward trajectory. Every company has risks, and we've spotted 1 warning sign for Oracle you should know about. The end of cancer? These 23 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. The collaboration between Oracle and Sphere to leverage Oracle Database 23ai is expected to further enhance Oracle's AI-driven capabilities, potentially leading to increased demand for their cloud services. This development aligns with Oracle's wider strategy of expanding its cloud power capacity and multi-cloud partnerships with giants like AWS, Google, and Azure. Such initiatives are anticipated to accelerate future revenue growth, especially in AI training and database migration, thus boosting Oracle's earnings forecasts. Analysts predict substantial growth in Oracle's revenue and earnings due to these efforts, with strong performance obligations reflected in a US$130 billion increase. Over the past five years, Oracle's total shareholder return, including share price gains and dividends, was 192.19%. This demonstrates significant long-term growth. In the past year, Oracle's stock exceeded the US Software industry's return of 10.8%, reflecting its robust market performance. Despite the substantial return, the recent price surge has yet to align fully with the consensus price target of US$178.12. Oracle's current price of US$140.79 indicates potential upward movement as investor confidence grows around its AI capabilities and market position. Insights from our recent valuation report point to the potential undervaluation of Oracle shares in the market. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:ORCL. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
29-01-2025
- Business
- Yahoo
ServiceNow expands Workflow Data Fabric capabilities with new Oracle Autonomous Database, Oracle Database 23ai integration
Zero copy data sharing and bi-directional data exchange connect Oracle data sources and the ServiceNow platform, fueling intelligent decision-making for enterprise agility SANTA CLARA, Calif., January 29, 2025--(BUSINESS WIRE)--ServiceNow (NYSE: NOW), the AI platform for business transformation, today announced a new integration with Oracle (NYSE: ORCL) to enhance ServiceNow Workflow Data Fabric capabilities. Zero copy data sharing and bi-directional data exchange will connect data in real-time between Oracle Autonomous Database with its fully automated threat detection and remediation capabilities, Oracle Database 23ai, and the ServiceNow platform, fueling intelligent decision-making and operational efficiency at scale. This integration further strengthens Workflow Data Fabric with enriched workflows powered by AI-driven insights, from any data source—transactional, analytical, vectors, documents, spatial, and graph—across the enterprise. "Data is the foundation of intelligent decision-making and the key to unlocking the full potential of AI. With Workflow Data Fabric, ServiceNow is empowering customers to connect their business and technology data through a single, scalable platform," said Nirankush Panchbhai, senior vice president of Platform at ServiceNow. "This powerful Oracle integration will amplify Workflow Data Fabric's capabilities, enabling businesses to streamline and optimize workflows, drive efficiency across mission-critical functions, and elevate analytics that inform quick, AI-powered actions." "Oracle has long been the backbone of the most demanding enterprise applications. The innovations in Oracle Database 23ai allow a single database to support vector processing and similarity searches qualified by private enterprise data," said George Lumpkin, vice president, Autonomous Database Product Management at Oracle. "This new integration with Oracle enables ServiceNow Workflow Data Fabric to include and be conditioned by unstructured and structured data essential for next-generation agentic AI processes." By connecting Oracle's powerful data sources—such as Oracle Autonomous Data Warehouse and Autonomous Transaction Processing—as well as supported data such as voice, video, image, and language, with ServiceNow's AI platform for business transformation, customers can respond quickly and accurately to emerging challenges and opportunities, helping reduce time-to-action and boosting operational agility. Through this integration, ServiceNow customers can access traditional structured data along with unstructured data directly from Oracle data sources and Oracle customers can retrieve data from ServiceNow without the need to move or copy data. By leveraging real-time, up-to-date data from Oracle sources, customers can contextually connect independent applications and analytics for more efficient operations and more insightful analytics. Oracle Autonomous Database comprehensively enforces strong security and access controls while automating most security functions, including data and network encryption, hardened security configuration, network access control, privilege user control, comprehensive logging and auditing, and cloud operator control. Using a converged platform such as Oracle Database 23ai for all the different modes and workloads helps reduce customers' overall burden, helps lower their total cost to operate, and helps them more effectively reduce the risk of data theft or destruction. This new integration augments Workflow Data Fabric, launched by ServiceNow last year to forge a new generation of AI-fueled productivity for the enterprise. Workflow Data Fabric is an advanced data integration and governance layer that connects business and technology data across the organization, enabling real-time, secure access to data from any source to fuel workflows and AI agents. This includes comprehensive rules and guardrails that manage how data is accessed, used, and monitored across an organization. By partnering with companies like Oracle, customers can effortlessly turn insights into actionable outcomes and maximize the value of their data. Availability The integration is expected to be available to select customers in the second half of calendar year 2025. About ServiceNow ServiceNow (NYSE: NOW) is putting AI to work for people. We move with the pace of innovation to help customers transform organizations across every industry while upholding a trustworthy, human centered approach to deploying our products and services at scale. Our AI platform for business transformation connects people, processes, data, and devices to increase productivity and maximize business outcomes. For more information, visit: About Oracle's Partner Program Oracle's partner program helps Oracle and its partners drive joint customer success and business momentum. The newly enhanced program provides partners with choice and flexibility, offering several program pathways and a robust range of foundational benefits spanning training and enablement, go-to-market collaboration, technical accelerators, and success support. To learn more, visit Trademark Information Oracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing. ServiceNow Forward-Looking Statements This press release contains "forward looking statements" about the expectations, beliefs, plans, and intentions relating to releasing a new integration. Such statements include statements regarding future product capabilities and offerings and expected benefits to ServiceNow. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, ServiceNow's results could differ materially from the results expressed or implied by the forward-looking statements made. ServiceNow undertakes no obligation, and does not intend, to update the forward-looking statements. Factors that may cause actual results to differ materially from those in any forward looking statements include: (i) delays and unexpected difficulties and expenses in executing the partnership or delivering the product capabilities and offerings, (ii) changes in the regulatory landscape related to AI and (iii) uncertainty as to whether sales will justify the investments in the product capabilities and offerings. Further information on factors that could affect ServiceNow's financial and other results is included in the filings ServiceNow makes with the Securities and Exchange Commission from time to time. ©2025 ServiceNow, Inc. All rights reserved. ServiceNow, the ServiceNow logo, Now, and other ServiceNow marks are trademarks and/or registered trademarks of ServiceNow, Inc. in the United States and/or other countries. Other company names, product names, and logos may be trademarks of the respective companies with which they are associated. 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