Harsh Chauhan, The Motley Fool

Sat, Jun 21, 2025, 2:55 AM6 min read

• Oracle stock gained momentum after its latest quarterly report.

• The stock seems primed for more upside thanks to rapidly growing demand for Oracle's cloud infrastructure.

• Oracle is on track to deliver faster earnings growth in the future, which could help the stock sustain its bull run.

• 10 stocks we like better than Oracle ›

Oracle (NYSE: ORCL) stock has been in fine form on the market over the past couple of months, gaining 77% from its April 21 52-week low. And it looks like this technology giant is primed for more upside following the release of its latest quarterly report.

Oracle reported its fiscal 2025 fourth-quarter results (for the three months ended May 31) on June 11. The market reacted positively, pushing the price higher for reasons that aren't all that surprising. Oracle, which made its name by selling database management software, now benefits from the tremendous demand for its cloud infrastructure services. The company not only delivered better-than-expected numbers, but it also issued solid guidance that points toward an even better year.

Let's take a look at Oracle's latest report and why it may be a good idea to buy the stock right away.

Oracle ended fiscal 2025 with $57.4 billion in annual revenue, up 9% in constant currency terms. The company expects to deliver at least $67 billion in revenue in fiscal 2026 (a jump of almost 17%). Don't be surprised to see Oracle clock even stronger growth, as only some of the company's artificial intelligence (AI)-related catalysts are baked into the guidance.

On the earnings call, Oracle Chief Technology Officer Larry Ellison said that the company's revenue pipeline could be much larger than what it is projected in the earnings report. The cloud giant reported a 41% year-over-year increase in its remaining performance obligations (RPO) in fiscal Q4 to $138 billion. RPO refers to the total value of Oracle's contracts that are yet to be fulfilled at the end of a quarter, and the massive increase in this metric explains why it is expecting a stronger top-line increase this year.

CEO Safra Catz projects the company's RPO will more than double in fiscal 2026, outpacing the projected growth in its revenue, which can set the stage for years of strong growth for the company. This massive increase in Oracle's RPO can be attributed to the stunning demand for its cloud infrastructure, which is being used for AI training and inference purposes by customers.

According to Ellison, Oracle could be understating its RPO if the $500 billion Stargate AI infrastructure project it is a part of pans out as expected. Oracle is one of the key technology partners and funders of the OpenAI-led venture that's backed by SoftBank and Abu Dhabi-based MGX, and it will "closely collaborate to build and operate" AI infrastructure as a part of this project.