Oracle(US:ORCL) The Motley Fool·2025-06-18 09:05Core Viewpoint - Oracle's stock surged after reporting strong fiscal Q4 results, with a market cap exceeding $600 billion, driven by robust cloud infrastructure growth and AI adoption [1][2][3] Financial Performance - Oracle's Q4 results surpassed consensus expectations, indicating a positive outlook for growth in the current fiscal year [2] - The company anticipates fiscal 2026 revenue to reach $67 billion, exceeding previous guidance of $66 billion [6] - Analysts have raised revenue growth expectations significantly due to Oracle's strong performance and growth prospects [9] Growth Catalysts - Oracle's remaining performance obligations (RPO) are projected to more than double in fiscal 2026, with an RPO of $138 billion at the end of fiscal 2025, reflecting a 41% year-over-year increase [7][8] - The company is expected to have around $280 billion in unfulfilled contracts by the end of the current fiscal year, indicating a strong revenue pipeline [11] - The global cloud computing market is projected to generate $2 trillion in revenue by the end of the decade, with significant opportunities in infrastructure-as-a-service and software-as-a-service [12] Capacity Expansion - Oracle plans to build 30 new dedicated data centers and increase multicloud data centers from 23 to 70 within the next 12 months, enhancing its capacity to capture market opportunities [13] Market Cap Projections - Consensus estimates suggest Oracle's earnings will increase by 12% in the current fiscal year, with potential for stronger growth in subsequent years [14] - Assuming a 20% annual earnings growth rate, Oracle's earnings per share could rise to $14.28 in five years, with a potential stock price of $381 by 2030, indicating a 77% upside from current levels [16][17] - Oracle's current market cap of $603 billion positions it well to exceed $1 trillion by the end of the decade, especially given its attractive valuation compared to the U.S. technology sector [18]