Oracle Corporation prepares the world for unprecedented success in 2025

Oracle had an incredible year-end performance in Fiscal Q4-2024, which paved the way for a historic Fiscal 2025.

Oracle looks set for sustained revenue and earnings growth, driven by historic contracts and remarkable performance in cloud services. Investors wishing to purchase this long-term compounder at a fair price have a strong purchasing opportunity as long as the stock's valuation is attractive. I am therefore optimistic about ORCL shares.

Building on my optimistic view of Oracle, the company's Q4 results showed strong sales and earnings growth momentum, mostly due to a sustained uptick in demand for cloud services. With $14.3 billion in total revenue for the quarter, the company's revenues increased 3.2% in constant currency over the prior year. Although this growth rate may appear modest, it should be noted that it is in contrast to the robust 16.9% increase of the previous year and that the company's primary source of revenue remains its traditional database division. However, its cloud business is still gaining more traction.

More precisely, cloud revenue reached $4.7 billion, up 23% year over year, excluding the acquisition of Cerner. The total cloud revenue increased by 20% to $5.3 billion when Cerner was included. Notably, Infrastructure as a Service (IaaS) increased by an astounding 42%, building on an already remarkable 77% growth the year before.

The management stressed that a purposeful change towards high-demand cloud products was what produced these achievements. Additionally, Oracle's residual Performance Obligations (RPO), which offer insight into potential revenue, increased by 44% to $98 billion from the prior year. Oracle signed its biggest-ever sales contract during the quarter.

Additionally, the business signed over $12 billion in AI contracts on its own, demonstrating its active participation in the AI revolution and the continued rise in spending on AI-related projects that are advantageous to the business. Although Oracle's 3.2% overall sales increase may not initially appear to indicate it, the company is undoubtedly moving quickly away from its legacy business and gaining speed.