Oracle Corporation (ORCL.US) is up over 8% in pre-market trading on the New York Stock Exchange following the release of its Q1 2025 financial results yesterday. The results are very optimistic, as they exceeded most of the already high market expectations.

Oracle, long known primarily for its database software, has in recent years been rapidly expanding its cloud computing business, with a strong focus on supporting AI clients. The company is steadily positioning itself as a key provider of computing power for the most demanding AI clients — earlier this year it launched a joint venture called Stargate, which will deliver massive cloud infrastructure resources for OpenAI. Oracle also serves clients such as Elon Musk’s xAI and Meta Platforms Inc., further strengthening its position in this strategic AI and cloud segment.

Bloomberg reporter Brody Ford posted on X that Oracle has signed a "gigantic" cloud contract with Chinese e-commerce company Temu, and TikTok is also among Oracle’s cloud customers. The development of these partnerships confirms that Oracle is successfully capitalizing on the booming demand for advanced AI infrastructure, which combined with strong financial performance, continues to build significant value for shareholders.

Key Financial Metrics – Q1 2025:

• Adjusted revenue: $15.90B, +11% y/y (estimate: $15.59B)
   
• Adjusted EPS: $1.70 (estimate: $1.64)
   
• Cloud revenue (IaaS + SaaS): $6.7B (estimate: $6.72B)
   
• Cloud Infrastructure (IaaS): $3.0B (estimate: $3.07B)
   
• Cloud services & license support revenue: $11.70B, +14% y/y (estimate: $11.57B)

• Remaining performance obligations: $138B, +41% y/y

Oracle Corporation (D1 time frame):

Oracle shares are currently trading over +7.5% above yesterday’s close (USD 177.06) in pre-market trading. The stock is likely to open around USD 190, bringing it very close to its all-time high (ATH) of USD 198.34. Given the company’s positive momentum and the two-month uptrend in the stock, it might be possible that Oracle breaks through its ATH. A breakout above USD 200 would be psychologically significant for investors and could trigger strong buying activity.

Source: xStation 5

Outlook & Forecasts:

The outlook for Oracle remains very strong.

• The company expects its cloud services revenue to grow by over +40% in fiscal year 2026.
• Cloud infrastructure (OCI) revenue is expected to grow by more than +70%.
• MultiCloud database revenue (across Amazon, Google, and Microsoft Azure) grew by +115% quarter-on-quarter, and triple-digit growth is expected to continue in FY26.

Oracle is also rapidly expanding its infrastructure:

• It currently operates 23 MultiCloud data centers, with 47 more under construction.
• Oracle also has 29 dedicated Oracle Cloud Customer data centers live, with 30 more planned.

In terms of competition, Oracle is pushing hard to strengthen its presence in the global cloud infrastructure market, where it competes with Amazon AWS, Microsoft Azure, and Google Cloud. Thanks to high-profile clients such as OpenAI, Meta, TikTok, and the newly signed gigantic contract with Temu, Oracle is positioning itself as a leading provider of advanced AI infrastructure and  high-performance database systems. CEO Safra Catz  stated that Oracle is well on its way to becoming “one of the world’s largest cloud infrastructure companies.”