Oracle shares pop 15% to record high on earnings beat, cloud optimism
Oracle shares soared 15% on Thursday and headed for a record close and their best day since 2021, after the database software vendor issued robust earnings and a strong forecast, fueled by growth in cloud.
Revenue climbed 11% year over year during the fiscal fourth quarter to $15.9 billion, topping the $15.59 billion average estimate, according to LSEG. Adjusted earnings per share of $1.70 exceeded the average analyst estimate of $1.64.
"All told, ORCL has entered an entirely new wave of enterprise popularity that it has not seen since the Internet era in the late 90s," Piper Sandler analysts wrote in a note to clients. The firm was one of several to lift its price target on the stock, raising its prediction to $190 from $130.
Oracle has been making headway in the cloud infrastructure market to challenge Amazon, Google and Microsoft. It's still small by comparison, with $3 billion in cloud revenue during the May quarter, compared with over $12 billion for Google, which counts productivity software subscriptions and cloud infrastructure sales when reporting cloud metrics. But Oracle's business is growing faster.
Future expansion can also come from sales of Oracle's database on clouds other than its own.
"The growth rate in multi-cloud is astonishing," Oracle Chairman Larry Ellison said on Wednesday's conference call with analysts. "In other words, our database is now moving very rapidly to the cloud, I think because – a few reasons, because the database has now all these AI capabilities, but also, quite frankly, now people can get it in whatever cloud they want."
Remaining performance obligations, a measurement of money that's expected to be recognized as revenue in the future, sat at $138 billion, up 41% from a year earlier. Oracle CEO Safra Catz said RPO will likely more than double in the 2026 fiscal year, which ends in May 2026. Revenue for the new fiscal year should come in above $67 billion, she said. That's higher than LSEG's $65.18 billion consensus.
Gains from OpenAI's Stargate artificial intelligence data center project, targeting $500 billion in investments over four years, are not yet included in forecasts.
"If Stargate turns out to be, everything is advertised, then we've understated our RPO growth," Ellison said.
For fiscal 2029, revenue should be above the $104 billion target the company set in September, Catz said.
Still, the company faces the challenge of meeting client demand in cloud.
"Demand continues to dramatically outstrip supply," Catz said, though she added that the company isn't having trouble sourcing Nvidia graphics processing units.
Analysts at RBC, who recommend holding the stock, raised their price target to $195 to $145. But they noted that, "with the backdrop of continued capacity constraints, we struggle to see a path to meaningful acceleration in the near term."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
32 minutes ago
- Yahoo
Google Just Kicked In Hollywood's Trailer Door
What a difference a year makes… Not long ago, AI's best attempt at video generation resulted in that cursed clip of Will Smith shoveling spaghetti into his mouth with his four-fingered hands. But now the world has Google's Veo 3 at its fingertips – the tech titan's latest AI video generation tool. And the results we're seeing are nothing short of astonishing. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This shiny new model can generate ultra-realistic, 1080p, synchronized audio-visual content based on a simple text prompt… 'A woman, classical violinist with intense focus, plays a complex, rapid passage from a Vivaldi concerto in an ornate, sunlit baroque hall during a rehearsal. Her bow dances across the strings with virtuosic speed and precision. Audio: Bright, virtuosic violin playing, resonant acoustics of the hall, distant footsteps of crew, conductor's occasional soft count-in (muffled), rustling sheet music.' And within seconds, there she is, in video so realistic, you can even see individual hairs on her head highlighted by the sun. She's almost tangible. The music is swelling. And no human lifted a single camera. What we're witnessing with the launch of Google DeepMind's Veo 3 isn't some gimmicky tech demo or mere novelty for nerds on X. This seems more like the starting pistol for the next great creative-industrial upheaval – and if you're in the business of making or investing in content, it's time to get serious. Yes, Veo 3 may be limited to eight seconds today. But that's not a wall; it's a runway. And if you've been paying any attention to the exponential trajectory of AI development, you know where this might go next. Longer clips, then full scenes, entire episodes… and eventually, complete seasons. Perhaps one day, personalized stories crafted in real-time based on what you like to watch. It's coming – . This could be the beginning of the end of Hollywood as we know it… And the start of a new era of AI stock dominance in the content world. Obviously, this isn't the industry's first attempt at AI-generated video. Runway's Gen-2 was a cool prototype. OpenAI's Sora looked great in a lab. But Veo 3 is different. It's the first model with: 4K visual quality fully integrated audio cinematic camera movement deep prompt adherence and, crucially, a launch partner with billions of users and a roadmap to global rollout In our view, Google has aimed a shotgun full of GPU clusters directly at Hollywood's business model. And Veo 3 is just the tip of the spear. Behind it are entire pipelines – Gemini-powered plot generators, scriptwriting agents, motion planners, and real-time editors. Google is compressing the entire TV and film production supply chain into a single generative stack. Do you know what happens when you take a years-long, $100-million content pipeline and squeeze it down into a GPU-powered prompt that costs pennies? You break the game… If you work in video production – or the hundreds of satellite roles orbiting it – AI just kicked in your trailer door with Veo 3. Think about it. With this quantum leap in AI's video generation capabilities, actors could soon be replaced by photorealistic avatars and voice clones. No need for makeup artists; glam will be digitally rendered in post. Goodbye, set designers; hello, infinite virtual stages. Cinematographers? AI models now handle camera movement with humanlike precision. Now, writers, you're still needed… but you'd better learn to prompt. This might feel like sci-fi, but it's more so basic economics. Studios are always hunting for ways to reduce cost and time. And AI doesn't sleep, unionize, forget lines, or demand a four-figure payday. That's why we expect that over the next five to 10 years, AI will eat the technical backend of filmmaking the way Amazon ate retail – and with the same ruthless cost-efficiency. The same kinds of players always win when the tech curve steepens: Those who ride the exponential wave instead of trying to fight it. Take Netflix (NFLX) – Blockbuster killer; once DVD-dealer, now data king in entertainment. It knows what you watch, when you watch it, what you love, and what you hate. Imagine what an AI script engine could do with all that data. You're a fan of fictional period romance stories? Netflix's AI could create 10 different versions of the next Bridgerton, testing which hooks you harder – then instantly generate the winner in full. Or how about Alphabet (GOOGL)? It runs YouTube and Veo 3 – the delivery pipelines and creative infrastructure. Combine Veo with Gemini and YouTube Studio, and you've got a vertically integrated AI content machine with billions of monetizable eyeballs. And then there's Meta (META). It's got LLaMA, Emu, and a raging addiction to immersive content. Just picture Veo-level video generation tailored to your social graph, optimized for infinite scroll, and seamlessly injected into Instagram, Threads, and the Metaverse. Engagement meets hallucination. And the rest of Hollywood? Well… Legacy studios, crew-heavy productions, anyone betting their future on union-only sets and hundred-million-dollar shoots… it seems you are on notice. The economics just changed – permanently. When it comes to AI-native studios that can churn out hyper-targeted content at 1/100th the cost and 100x the speed, there's no competition. And it's not likely that audiences will resist. Pundits said the same thing about CGI, YouTube, reality TV, TikTok. People don't care how it's made. They care how it feels. And if AI gives them a hit of dopamine, they'll hit 'Next Episode' without a second thought. This latest AI breakthrough feels a lot like the early 2000s, when Amazon used the internet to undercut brick-and-mortar retail. Lower costs, faster delivery, wider selection. Incumbents laughed… until they went bankrupt. Remember Sears, JCPenney, K-Mart? Same script, different industry. AI is the internet. Veo 3 is Netflix is Jeff Bezos, sitting atop its throne with a popcorn bucket in hand. And once one company starts passing cost savings to consumers with cheaper subscriptions, faster content cycles, and more personalization, others have to follow. That's how you get a full-blown economic reset. Currently, Veo 3 is available to select creators via waitlist — but given Google's track record with rapid deployment, widespread rollout to YouTube creators and enterprise partners could come quickly. Here's what we think could be next: Custom AI-generated series and movies tailored to individual users Interactive stories where the plot evolves based on viewer engagement Fan-generated shows that rival studio hits Ad-supported, AI-produced content that costs nothing to stream Veo 3's launch proved that the AI Content Economy is just around the corner. We are years – not decades – away from this becoming a widespread reality. So, if you're an investor, go long AI. This breakthrough tech is eating the whole global economy. Hollywood is just one entree in a seven-course meal. Buy the platforms, AI chipmakers, infrastructure enablers, and appliers – Alphabet, Meta, Nvidia (NVDA) – and yes, Netflix. These are the architects of the new media world. Learn to prompt like a boss; curate, direct, and remix. AI is the orchestra, but someone still has to conduct. And if you're in denial, you might want to check the mirror – and ask Blockbuster how things shook out after ignoring the curve. AI's industrialization of content creation isn't a theory anymore: it's a living, accelerating disruption. Veo 3 marks the moment when generating Hollywood-quality video no longer requires Hollywood-scale budgets. And we're just at the starting gate. Just as streaming upended cable and smartphones reshaped the internet, generative video is about to redefine content itself – who created it, how fast it's made, and who profits. The big studios? Maybe. But more likely, it'll be the AI-native platforms, the chipmakers, and the investors who saw it coming. And yet, Veo 3 is just one front in a much broader AI revolution. While the world watches digital actors take center stage… Another trillion-dollar transformation is forming in the wings. Humanoid robots – what we're calling '' According to Morgan Stanley (MS), this market could be worth as much as $30 trillion in the coming decades. That's bigger than today's global e-commerce and cloud computing markets combined. Why? Because humanoid robots won't just generate videos or write code. They'll do the jobs. Real, physical tasks in factories, on farms; in homes, hospitals, and warehouses. Every job the global economy depends on could be automated, accelerated, and made profitable at scale. And it's all happening faster than most expect. . The post Google Just Kicked In Hollywoodâs Trailer Door appeared first on InvestorPlace.
CNET
40 minutes ago
- CNET
This iOS 26 Feature Might Keep Me From Switching Back to Pixel
I switched from a Google Pixel 3 XL in 2021 to Apple's iPhone 12 Pro Max, and in the years since, I've dearly missed Google's Hold For Me. This feature is so useful in saving me from the misery of listening to awful hold music whenever I needed to call up a business, my health insurance provider, my cellphone carrier or any of the other myriad adulting tasks that still require speaking with a representative. Instead, the Google feature would helpfully silence my phone while keeping the call active, listen to the hold music for me and then ring when it's time to return to the call while alerting the representative that I'll return shortly. And so at the Worldwide Developers Conference 2025, when Apple announced Hold Assist -- which sounds awfully similar to Pixel's Hold For Me -- I was thrilled. I've been eying a switch back to Android for the rumored Pixel 10, partly because I've missed having these call controls for everyday issues. But with iOS 26, Hold Assist should detect hold music, and then give you the option to silence the call while keeping it active. Then, when the representative comes back on, the phone will notify you when it's time to return to the call. We'll have to wait until at least the public beta to start trying this feature out, but on paper, it sounds almost exactly like the Pixel feature. The Hold For Me feature debuted in 2020 with the Pixel 5 and 4A. Google/Screenshot by Sara Tew/CNET While I'm glad that the iPhone will finally have an equivalent to this feature, it's worth pointing out that it's taken a long time for such calling enhancements to make their way outside of Google's Pixel line. Google introduced Hold For Me in 2020, but most other Android phones made by Samsung, OnePlus and others do not include their own take on the idea. The new Call Screening feature for iOS 26 is similar to the Pixel's Call Screen option, but it sounds like Apple's rendition will take a more automated approach. Apple's Call Screen will collect information like the person's name and purpose from an unknown caller for you, and then present it as a summary to help you decide if you should pick up. You can also send more prompts as needed if you're still unsure. In iOS 26, Hold Assist will keep the call remain active but phone will be silenced. Apple/Screenshot Google's solution lets you pick the questions that are asked to the caller and, instead of a summary, you watch as a text transcription of the call takes place. What I appreciate most about these features is that they remember that the iPhone is a phone at the end of the day. And spam callers remain just as much of a problem now as ever, especially as AI voice clones add even more issues to the kinds of scams trying to reach people. Until these features are available when iOS 26 arrives later this year, I will just continue to bring my patience to the next time I have to call up my health insurance provider. And keeping my fingers crossed that hold music can become a thing of the past when Hold Assist becomes widely available.
Forbes
44 minutes ago
- Forbes
The End Of Browsing? AI Is Rewriting The Rules Of Online Visibility
Back when I was in high school, writing an academic essay was a chore. I'm talking leave-your-house-drive-to-the-library-to-search-for-citations-pain. Once, I spent an entire Saturday thumbing through books for quotes to back up my points. Later compiling that citation list in AP style was no joy either. By the time I got to college, the web had sped the search process way up. The miracle of online databases slashed my research time. A few years after that when I worked as a journalist covering the oil industry, I could easily access multiple sources by Googling topics. By then, the tedious part had become weeding out dead-end hyperlinks—usually anything past page one of the search results. In 2025 it's worth asking: do students or professionals search anymore? Business Insight Journal has an interesting take on this question. 'Students aren't just searching differently—they're searching elsewhere. According to Everspring's new 2025 AI Search Trends Report, prospective students increasingly turn to AI tools like ChatGPT instead of traditional search engines.' Professionals are also increasingly using AI to deliver direct answers rather than sift through pages of results. ''I don't even use Google anymore—I just use ChatGPT,' said Ash Minhas, a Technical Content Manager at IBM in a piece from the company evocatively titled: 'Browsing Obsolete: Examining the AI Search Era.' In it, Minhas gushes about artificial intelligence's utility to 'scan and synthesize a vast amount of sources in a short amount of time.' This remarkable shift in how we access information in such a short span reminds me of the saying: 'When one door closes, another opens.' That's because the expression 'Googling it' hasn't just lodged its way into our lexicon—it's become a way of life. Don't know something? Google it. But in a few years hearing someone say this may sound as quaint as the AOL modem startup noise. It might become a cultural relic due to the collapse of not just traditional search but the whole Search Engine Optimization (SEO) industry. Before discussing its likely replacement, Language Model Optimization (LMO), it's time for a refresher on the previous technology. Fittingly enough, it comes from 'SEO stands for search engine optimization, which is the process of improving a website's visibility in organic search results on Google and Bing, or other search engines. SEO involves researching search queries, creating helpful content, and optimizing the user experience to improve organic search rankings.' 'We're shifting from gaming Google's algorithm to engaging in real-time AI searches that respond directly to what we ask. That's the fundamental transformation unfolding right now,' said Claude Zdanow when I interviewed him to explain the impending sea change. As CEO of Onar Holding Corporation, a network of next-gen marketing and creative services agencies built to accelerate middle-market company growth via AI, he's following LMO closely. What he's noticed is the unprecedented value it brings clients. Traditional SEO often involved manipulating search rankings through keyword stuffing or an over-reliance on backlinks. There was definite utility behind such practices for companies wishing to be found, especially over their competitors. Unfortunately, end users didn't always find such stacked entries so helpful. LMO is now poised to disrupt this search model by operating as a kind of online oracle. 'Language Model Optimization is about creating content that's actually relevant and useful so that AI, not just a search engine, can interpret it, trust it, and serve it up as the best answer,' said Zdanow. 'It's no longer about finessing the system. It's about genuinely solving a user's problem.' Stepping back to contextualize this development, a logical progression is afoot. Value determines if a technology becomes widely accepted. Until web-based databases arrived, the most optimal way for high school students to source their papers was to pore through physical text. Later, search engines like Google became so popular because they worked even better. Now that LMO can accurately and efficiently deliver even more valuable answers, it's understandable that users like the Ash Minhas of the world flock to it. To grasp more of the value LMO provides, it's helpful to consult SEO Content Expert Jenny Abouobaia's LinkedIn post of the model's key prioritizations: 'Context Over Authority Signals: Unlike Google, which relies on backlinks for authority, LLMs focus on understanding the actual content.' Once more, we're talking about relevance. 'This shift isn't just about changing tactics,' said Zdanow. 'It's about changing intent. We must stop thinking in terms of algorithms and start thinking in terms of audiences. Moving forward, the question won't be 'How do I get ranked?' but rather: 'How do I help someone?'' That insight reminds me of philosopher Yuval Harari's take on the U.S.S.R.'s downfall in his book Homo Deus: A Brief History of Tomorrow. 'The Soviet Union tried to run a central economy from Moscow. And it just wasn't efficient. They brought all the information to Moscow, but there was nobody there who could process all the information fast enough and efficiently enough to make the right decisions. And this is why the distributed information system of the United States proved to be far superior to the centralized information system of the Soviet Union.' Harari's point is that America's decentralized bottom-up economy triumphed over its rival, but not through Cold War hostility. The U.S.S.R. imploded because it provided less value to its citizens. Top-down productivity collapsed alongside ideological alignment as its governance model proved incapable of meeting modern demands. The lesson here is simple: Value trumps everything in the end. Even totalitarian regimes. Companies would do well to think in these terms when it comes to getting found online. Business owners and the marketing agencies serving them can stay ahead of the search curve by producing content that's actually useful. When in doubt, stop and ask yourself: 'Would another person find this valuable?' If so, it's more likely you will get noticed under the LMO model. When it comes to content, the best advice I ever got was from my mom, back when I was still haunting the library to finish a paper on the Spartan phalanx: 'Be original.' In other words, share unique, non-derivative content, including stories or data AI cannot find anywhere else. This last point has special relevance for the times we live in. As AI automates more and more of life's drudgery and rote activities, space opens up for creativity and originality to once more be in demand. Rather than decry the shifting sands of commerce and the uncertainty it inevitably brings, we would do well to appreciate the opportunity tech provides. Especially when it allows us to deliver greater value to our fellow human beings.
