1 Magnificent Growth Stock to Buy Before It Soars Higher After This Event

Core Viewpoint - Oracle's stock has seen significant gains, increasing by 77% since its 52-week low in April, and is expected to continue its upward trajectory following the release of its latest quarterly report [1][2]. Financial Performance - Oracle reported $57.4 billion in annual revenue for fiscal 2025, reflecting a 9% increase in constant currency terms [5]. - The company anticipates revenue to reach at least $67 billion in fiscal 2026, representing a nearly 17% increase [5]. Growth Drivers - The demand for cloud infrastructure services, particularly for AI applications, is a major growth catalyst for Oracle [2][7]. - Oracle's remaining performance obligations (RPO) increased by 41% year-over-year to $138 billion, indicating strong future revenue potential [6]. - CEO Safra Catz projects that RPO will more than double in fiscal 2026, suggesting sustained growth [7]. AI and Infrastructure Projects - Oracle is a key partner in the $500 billion Stargate AI infrastructure project, which could significantly enhance its revenue pipeline [8]. - The company is experiencing high demand for cloud AI infrastructure, with one customer expressing interest in purchasing Oracle's entire cloud capacity [9]. Capacity Expansion - Oracle plans to build 30 dedicated data centers in fiscal 2026 and increase its MultiCloud data centers from 23 to 70 [10]. - The company forecasts Oracle Cloud Infrastructure (OCI) revenue to grow by 70% in fiscal 2026, following a 50% increase last year [11]. Valuation and Future Outlook - Oracle's non-GAAP net income for fiscal 2025 was $6.03 per share, an 8.5% increase from the previous year [12]. - The company expects capital expenses to reach $25 billion in fiscal 2026, which is a slower increase compared to the previous year [12]. - Oracle is projected to exceed its long-term revenue expectations, with anticipated annual bottom-line growth of over 20% through fiscal 2029 [14]. - The stock is currently trading at 31 times forward earnings, aligning with the Nasdaq-100 index's earnings multiple, indicating an attractive valuation for investors [15][16].