Oracle(US:ORCL) ZACKSยท2025-10-08 17:46Core Insights - Oracle's multi-cloud strategy is a significant driver for long-term growth, integrating with major hyperscalers like AWS, Microsoft Azure, and Google Cloud to enhance flexibility and scalability for enterprises [1][9] - The company anticipates cloud revenue growth of 32% to 36% in constant currency and 33% to 37% in USD for Q2 of fiscal 2026 [1] - Oracle's multi-cloud database services experienced a remarkable growth of over 1,500% year-over-year in Q1 of fiscal 2026, aided by strategic partnerships [2][9] - The upcoming launch of Oracle's Multi-Cloud AI Database is expected to further boost adoption by allowing the use of large language models directly on Oracle databases [3] - Oracle is investing in expanding its infrastructure with 37 new multi-cloud data centers, projecting OCI revenues to grow 77% year-over-year to $18 billion in fiscal 2026 [4][9] Competitive Landscape - Microsoft Azure poses a challenge to Oracle with its deep integration with Microsoft products and a strong hybrid-cloud strategy, reporting $47 billion in cloud revenues [5] - Google Cloud Platform (GCP) competes with Oracle through its strengths in AI and data analytics, with significant capital spending planned for AI-focused data centers [6] Financial Performance - Oracle's stock has increased by 70% year-to-date, outperforming the Zacks Computer and Technology sector and the Zacks Computer - Software industry [7] - The Zacks Consensus Estimate for Oracle's fiscal 2026 earnings is $6.77 per share, indicating a 12.27% growth compared to fiscal 2025 [13]