Core Insights - Oracle stock has seen a 43% year-to-date increase, significantly outperforming the S&P 500's 7% rise, driven by demand for cloud services amid the AI boom [2] - Revenue has surged by 35%, increasing from $42 billion in 2022 to $57 billion in the trailing twelve months, primarily due to the growth in Cloud Infrastructure (OCI) [3] - The price-to-sales (P/S) ratio has escalated by 127%, from 5.2x in 2022 to 11.8x currently, reflecting heightened investor confidence [4][5] Revenue Growth - Oracle's Cloud Services and License Support revenue reached $44 billion in fiscal year 2025, up from $30 billion in 2022, showcasing strong growth in OCI [6] - Total cloud services revenue more than doubled from $10.8 billion in 2022 to $24.5 billion in fiscal year 2025, indicating robust demand [6] - Total Remaining Performance Obligations (RPO) increased by 41% to $138 billion, providing strong visibility for future revenue streams [6] Valuation Drivers - The significant rise in Oracle's valuation multiples is attributed to its leadership in the Cloud Infrastructure market, with quarterly revenue growing from $1.0 billion to $3.0 billion, reflecting 40-60% year-over-year growth [4] - The stock is currently trading at a high valuation, with a P/S multiple of 11.7x, well above its four-year average of 6.5x [7] - The trailing adjusted earnings multiple stands at 54 times, significantly higher than the average P/E ratio of 32 times over the previous four years [7] Future Outlook - Oracle anticipates revenue growth from $57 billion in fiscal 2025 to over $104 billion by 2029, with an additional $30 billion expected from OpenAI by 2026 [10] - The company has established itself as a key player in the AI infrastructure space, attracting significant demand for its specialized GPU clusters and AI-optimized infrastructure [10] - Operating margin is approximately 31%, indicating potential for margin expansion as the company grows its high-margin cloud services [10]