Oracle(NYSE: Orcl) It has been a fixed performance in the stock market over the past five years, as it has achieved respectful gains of 230 % for investors and excel over NasdakJumped by 143 % with a handsome margin. But the technology giant was under pressure this year.
The shares of the company known for providing databases and cloud services management decreased by 7 % in 2025 to this writing, almost in line with the Nasdak step. Oracle’s recently reported results for the third quarter of the fiscal year 2025 (which ended on February 28). The stock decreased after issuing its report on March 10, but it has since recovered.
The growth of the company’s anemia was not good enough to meet Wall Street’s expectations, while bad guidelines were added to the depression. But smart investors can think about using withdrawal as the opportunity to buy due to the presence of clear signs that the company has been appointed to the gas in the future. The tremendous opportunity in the cloud infrastructure market can send Oracle shares over the next five years.
Investors were quick to press the panic button after the latest results of the company, as the increase in revenue by 8 % on an annual basis and jumped by 4 % in the modified profits was not enough to meet the unanimity estimates.
Moreover, the administration’s expectations for a 9 % increase in revenue in the current quarter at the center point is slightly lower than 11 % that analysts expect.
But focus on Oracle’s performance in the short term and long -term students is like a forest loss of trees. The wonderful demand for the company’s cloud infrastructure for artificial intelligence training (AI) leads to tremendous growth in its accumulation.
This is evident from the 62 % increase on an annual basis in the remaining performance in Oracle (RPO) in the last quarter to $ 130 billion. The scale indicates the total value of the contracts of the company that has not yet been fulfilled, and it is worth noting that this scale has grown at a rate much faster than the company line in the last quarter.
Oracle Management referred to the latest collective call with analysts that the quarter was stronger in terms of reservations. The company has added new contracts worth $ 48 billion to its accumulation. At the same time, Oracle is bound by capacity. The demand for the company’s cloud infrastructure exceeds the offer, as more companies are heading towards Oracle offers to train and publish AI models and applications.
The administration adds that its cloud infrastructure is “faster, and therefore cheaper than our competitors.” The good part is that the demand for cloud infrastructure in Oracle can continue to grow at a great pace during the end of the contract. Goldman Sachs The cloud infrastructure market is estimated at the IAS service, which will generate annual revenues of $ 580 billion by 2030.
The frequency of growth in RPO’s Oracle and the impressive rate in which new contracts signed that the company is already on its way to preventing the lion’s share of the huge treated opportunity. More importantly, the prosperous size of Oracle’s RPO is to be translated into stronger growth of the company in the coming years.
Oracle expects Oracle to accelerate the growth of its revenues in the coming fiscal year to 15 %, followed by a 20 % stronger jump in the fiscal year 2027. Both these numbers are higher than the company previously expected. Oracle had led $ 65 billion in revenue in 2026 in September last year, but she now believes that it could reach $ 66 billion of revenues in the coming fiscal year.
At the same time, an increase of 20 % in its revenue in the fiscal year 2027 will send its higher line to more than $ 79 billion. This is higher than analysts expect.
ORCL revenues for the current fiscal year data by Ycharts
It is good for investors note that Oracle may exceed their long -term expectations, given the wonderful pace that increases its ability to the data center to meet the demand. The administration will double the ability of its data centers in the current fiscal year, and plans to install it three times at the end of the next fiscal year.
Therefore, it is easy to know why Oracle expects to accelerate the growth of its revenues, as the higher data center capacity will enable it to achieve more RPO. This, in turn, should perfectly lead to strong growth in the company’s final result.
In September last year, Oracle expected her profits to rise at an annual rate of more than 20 % until 2029. However, management comments indicate the latest collective call to profits that it could be better.
Assuming that Oracle can record the annual profit growth rate by 25 % over the next five years, the final result can jump to $ 18.31 per share by the fiscal year 2030 (using its expected financial profits of $ 6.00 per share). Oracle is currently trading with 21 times forward, and it is a discount on the loaded technology Nasdaq-100 Futures profits double 25.
If the market decides to put a higher assessment on Oracle and is trading with profits 25 times in five years, then this would put the price of his share at $ 458. This will be a 197 % jump from the share price and I am writing this.
Investors must consider adding artificial intelligence to their governor after its last decline. It is not appreciated now; It has the ability to achieve healthy gains in the long run.
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He continues.
*The stock consultant dates back from March 18, 2025
Harsh Chauhan has no position in any of the mentioned shares. Motley Fool has positions in Goldman Sachs Group and Oracle. Motley Fool has a disclosure policy.
Prediction: Oracle Stock has been published with 200 % in the next five years by Motley Fool
