Oracle Stock Hits $135 in 2025 After Major Cloud Deals with Microsoft, OpenAI & Google
Despite missing Q4 2025 earnings estimates, Oracle's shares soared over 9% following groundbreaking cloud infrastructure partnerships with Microsoft, OpenAI, and Google, signaling strong AI-driven growth ahead.
Key Highlights
- Oracle's Q4 2024 revenue and earnings fell short of analyst forecasts, yet strategic cloud partnerships boosted investor confidence.
- Year-over-year revenue rose 3%, though net income slipped compared to the previous year.
- Collaborations include extending Microsoft's Azure AI platform to Oracle Cloud Infrastructure (OCI) and a new Google Cloud interconnection agreement.
Oracle (ORCL) reported fiscal Q4 2024 revenue of $14.29 billion, reflecting a 3% increase from last year but below analyst expectations compiled by Visible Alpha. Net income was $3.14 billion, or $1.11 per share, down from $3.32 billion or $1.19 per share a year earlier, missing estimates.
The company unveiled a strategic partnership with Microsoft and OpenAI to expand Microsoft’s Azure AI platform onto Oracle Cloud Infrastructure (OCI), enhancing capacity for OpenAI’s AI models. OpenAI CEO Sam Altman expressed enthusiasm, stating OCI will empower Azure’s platform and support OpenAI’s growth.
Oracle CEO Safra Catz highlighted that Q3 and Q4 marked the largest sales contracts in Oracle’s history, driven by surging demand for AI large language model training on Oracle Cloud. She anticipates accelerating growth as OCI scales to meet demand.
In Q4 alone, Oracle secured over 30 AI-related contracts worth more than $12.5 billion, including a significant deal with OpenAI for ChatGPT training.
Additionally, Oracle signed an agreement with Google to interconnect their clouds and plans to build 12 Oracle Cloud datacenters within Google Cloud, with Oracle database availability expected by September 2024.
Following these announcements, Oracle’s shares jumped more than 9% to $135.25 in after-hours trading, reflecting optimism about its AI cloud infrastructure strategy.
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