This article first appeared on GuruFocus.
Oracle Corp. (ORCL, Financials) is seeing growth that it hasn’t seen in more than 20 years, thanks to a rise in demand for cloud and AI services.
The company expects its total revenue to climb by 16% in fiscal 2026, thanks to a 77% increase in its Oracle Cloud Infrastructure division. Oracle is getting new AI workloads and strengthening its position in a market dominated by Amazon and Microsoft thanks to its growing relationship with OpenAI on the Stargate project.
Analysts say Oracle’s shift from legacy software to cloud and AI services is finally paying off. The company’s SaaS products are expanding quickly, and its investment in global data centers is giving it the scale to compete at the top of the industry.
There are still risks particularly its dependence on a few large AI customers but analysts see up to 27% upside as Oracle enters what could be its strongest growth run since the early 2000s.
https://finance.yahoo.com/news/oracle-enters-strongest-growth-phase-175047867.html
