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Business Insider
a day ago
- Business
- Business Insider
Oracle appears to have named two new presidents
The company filed two filings with the Securities and Exchange Commission listing cloud boss Clay Magouyrk and head of industries Michael Sicilia as "president." The forms don't explicitly mention a promotion, but the executives haven't been previously listed as "presidents," according to a person familiar with the matter. The executives, according to that person, are considered part of a succession plan for Larry Ellison. Ellison is Oracle's cofounder and former CEO who now serves as chief technology officer and executive chairman. Oracle CEO Safra Catz was previously a co-president along with the late Mark Hurd. They shared the title until both were promoted to co-CEOs in 2014 when Ellison stepped back. Hurd died in 2019, and while Ellison considered possible successors, he opted for Catz to remain the company's sole CEO. Magouyrk is a former Amazon software development engineer who joined Oracle as an individual contributor in 2014. He quickly impressed Ellison and Catz with his ability to deliver results quickly, leading to his rapid ascent through the ranks to preside over Oracle Cloud Infrastructure. His leadership style has at times been controversial. Sicilia is the executive vice president of Oracle Industries. He's the executive who has been leading Oracle's takeover of Cerner. The executives will help lead Oracle as it gains traction in the cloud-computing market. Oracle shares hit a record high this week after beating analyst estimates and raising its revenue forecast. Piper Sandler analysts wrote in a note after the earnings release that the company "has entered an entirely new wave of enterprise popularity that it has not seen since the Internet era in the late '90s."
Business Insider
a day ago
- Business
- Business Insider
Oracle appears to have named two new presidents
Oracle appears to have appointed two new presidents. The company filed two filings with the Securities and Exchange Commission listing cloud boss Clay Magouyrk and head of industries Michael Sicilia as "president." The forms don't explicitly mention a promotion, but the executives haven't been previously listed as "presidents," according to a person familiar with the matter. The executives, according to that person, are considered part of a succession plan for Larry Ellison. Ellison is Oracle's cofounder and former CEO who now serves as chief technology officer and executive chairman. Oracle CEO Safra Catz was previously a co-president along with the late Mark Hurd. They shared the title until both were promoted to co-CEOs in 2014 when Ellison stepped back. Hurd died in 2019, and while Ellison considered possible successors, he opted for Catz to remain the company's sole CEO. Magouyrk is a former Amazon software development engineer who joined Oracle as an individual contributor in 2014. He quickly impressed Ellison and Catz with his ability to deliver results quickly, leading to his rapid ascent through the ranks to preside over Oracle Cloud Infrastructure. His leadership style has at times been controversial. leading Oracle's takeover of Cerner. The executives will help lead Oracle as it gains traction in the cloud-computing market. Oracle shares hit a record high this week after beating analyst estimates and raising its revenue forecast. Piper Sandler analysts wrote in a note after the earnings release that the company "has entered an entirely new wave of enterprise popularity that it has not seen since the Internet era in the late '90s."
Yahoo
2 days ago
- Business
- Yahoo
Oracle waves off cloud customers as its data center investments balloon
This story was originally published on CIO Dive. To receive daily news and insights, subscribe to our free daily CIO Dive newsletter. Oracle fielded more cloud business than its data centers could handle, executives said Wednesday during the company's Q4 2025 earnings call for the three months ending May 31. 'We actually currently are still waving off customers — or scheduling them out into the future so that we have enough supply to meet demand,' CEO Safra Catz said. The junior hyperscaler, which trails cloud giants AWS, Microsoft, Google Cloud and Alibaba Cloud in the global battle for market share, saw quarterly cloud infrastructure and software services revenue increase 27% to $6.7 billion year over year, accounting for 42% of the company's $15.9 billion in revenue. Oracle's capital expenditure for the entire fiscal year more than doubled to $21.2 billion compared with the prior year as the company raced to add data center capacity. 'We are putting out as much capacity as we possibly can,' Catz said. 'When we all of a sudden have higher CapEx, it means we are filling out data centers and we are buying components to build our computers.' As large language models devour compute resources, cloud providers are pouring tens of billions of dollars into data centers to narrow gaps between supply and demand. Hyperscalers drove an unprecedented 34% year-over-year spike in data center hardware and software spending, which hit a record high $282 billion in 2024, according to Synergy Research Group. Large cloud providers accounted for more than half of $455 billion in data center capital investments on the year, marking a 51% increase over 2023, the Dell'Oro Group found. Oracle remained a relatively small fish in an expansive pond. The provider took in roughly 3% of $94 billion in global cloud infrastructure services spending, which grew 23% year over year during the first three months of 2025, according to Synergy Research Group. AWS and Microsoft, the two largest hyperscalers, captured the lion's share of cloud revenues, controlling 29% and 22% of the market, respectively. As the market grew and capacity constraints surfaced even among the largest providers, Oracle doubled down on data centers, expanding its cloud estate to more than 100 regions. In March, the Catz vowed to triple capacity by the middle of next year and the company committed to a $5 billion U.K.-based cloud infrastructure buildout. On Wednesday, Catz said the company's capital expenditure will likely surpass $25 billion in the next fiscal year. 'We don't build unless we've got orders for our capacity to be built out,' said Catz. 'It is all to meet demand.' Oracle CTO Larry Ellison added color to Catz's assessment. 'We recently got an order that said we'll take all the capacity you have wherever it is — it could be in Europe, it could be in Asia, we'll just take everything,' Ellison said. 'We did the best we could to give them the capacity they needed. The demand is astronomical.' As the company grows its cloud footprint, it is also leveraging recent partnerships with its three biggest competitors to grow its database business. In the last two years, AWS, Microsoft and Google Cloud made separate agreements to run Oracle database servers in their data centers. The multicloud integrations are currently deployed in 23 hyperscaler cloud regions, with an additional 47 in the works, Ellison said. 'Most of the world's most valuable data is stored in an Oracle database,' Ellison added. 'All of those databases are moving to the cloud — Oracle's cloud, Microsoft's Azure cloud, Amazon's cloud or Google's cloud. As use of AI increases, so will Oracle's database market share.' Recommended Reading Nvidia lures all 4 major cloud hyperscalers with Blackwell 'superchip' Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Cloud Powers Oracle's Q4 Earnings: ETFs to Gain
Oracle ORCL reported solid fourth-quarter fiscal 2025 results on Wednesday after the bell, outpacing earnings and revenue estimates. It lifted its fiscal 2026 revenue growth forecast, citing robust demand for its cloud offerings from companies deploying artificial shares popped up about 8% in after-market hours on elevated volumes. The smooth trading is likely to prevail in the ETFs with the highest allocation to this software giant. These include Pacer Data and Digital Revolution ETF TRFK, iShares Expanded Tech-Software Sector ETF IGV, Janus Henderson Transformational Growth ETF JXX, First Trust NASDAQ Technology Dividend Index Fund TDIV, and FT Vest Technology Dividend Target Income ETF TDVI. The company's fourth-quarter fiscal 2025 earnings per share were $1.70, which beat the Zacks Consensus Estimate of $1.64 and improved from the year-ago earnings of $1.63. Revenues rose 11% year over year to $15.9 billion and edged past the Zacks Consensus Estimate of $15.54 billion (see: all the Technology ETFs here). The business is booming due to soaring demand for computing power that can handle artificial intelligence projects. Revenues from its cloud infrastructure unit soared 52% year over year to $3 has raised its annual revenue growth forecast for fiscal 2026. It now expects total revenues to reach at least $67 billion. This reflects an anticipated year-over-year growth of approximately 16.7%, up from its previous estimate of 15%. The upward revision underscores Oracle's confidence in sustained demand for its cloud services, which continue to be a key driver of the company's growth Safra Catz said cloud infrastructure revenues will increase more than 70% in fiscal 2026, up from 50% growth in fiscal 2025. Going forward, Oracle will likely exceed the $104 billion revenue target for fiscal 2029, Catz added. Let us delve into each ETF below:Pacer Data and Digital Revolution ETF (TRFK)Pacer Data and Digital Revolution ETF aims to offer investors exposure to globally listed stocks and depositary receipts of data and digital revolution companies. It follows the Pacer Data Transmission and Communication Revolution Index, holding 87 stocks in its basket. Oracle takes the third spot, accounting for 10.5% of the assets. Pacer Data and Digital Revolution ETF has accumulated $63.6 million in its asset base and charges 60 bps in annual fees. It trades in an average daily volume of 8,000 Expanded Tech-Software Sector ETF (IGV)iShares Expanded Tech-Software Sector ETF provides exposure to software companies in the technology and communication services sectors by tracking the S&P North American Expanded Technology Software Index. It holds a basket of 115 securities, with Oracle taking the third spot at 8.5% of the total assets (read: Salesforce to Buy Informatica in an $8 Billion AI Move: ETFs in Focus). iShares Expanded Tech-Software Sector ETF is popular, with an AUM of $11.8 billion. Its volume is good as it exchanges 4 million shares a day. IGV charges 41 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a High risk Henderson Transformational Growth ETF (JXX)Janus Henderson Transformational Growth ETF seeks to invest in companies benefiting from durable trends transforming society, including AI, deglobalization, health care innovation, digitization, and migration to the cloud. It holds 24 stocks in its basket, with Oracle taking the second spot at 8.1% of assets. Information technology, consumer discretionary, financials and healthcare are the top four sectors with double-digit exposure each. Janus Henderson Transformational Growth ETF has gathered $23.5 million in its asset base and charges 57 bps in annual fees. First Trust NASDAQ Technology Dividend Index Fund (TDIV)First Trust NASDAQ Technology Dividend Index Fund provides exposure to dividend payers in the technology sector by tracking the Nasdaq Technology Dividend Index. TDIV holds about 88 securities in its basket. Of these firms, ORCL occupies the fifth position, making up 6.8% of the Trust NASDAQ Technology Dividend Index Fund has $3.1 billion in its asset base and trades in a moderate volume of about 124,000 shares per day. The ETF charges 50 bps in annual fees (read: 5 Dividend ETFs Hovering Around a 52-Week High).FT Vest Technology Dividend Target Income ETF (TDVI)FT Vest Technology Dividend Target Income ETF is an actively managed fund that seeks to provide a target level of current income and capital appreciation by holding a portfolio of dividend-paying U.S. technology companies. The fund invests primarily in U.S. securities contained in the Nasdaq Technology Dividend Index and by utilizing an "option strategy" consisting of writing (selling) U.S. exchange-traded call options on the Nasdaq-100 Index and/or the S&P 500 Index or exchange-traded funds that track the Nasdaq-100 Index or the S&P 500 Vest Technology Dividend Target Income ETF holds 88 securities in its basket, with ORCL taking the fifth spot at 6.8% share. It has accumulated $91.1 million in its asset base and trades in a volume of 19,000 shares per day on average. TDVI charges 75 bps in annual fees. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Oracle Corporation (ORCL) : Free Stock Analysis Report First Trust NASDAQ Technology Dividend ETF (TDIV): ETF Research Reports iShares Expanded Tech-Software Sector ETF (IGV): ETF Research Reports Pacer Data and Digital Revolution ETF (TRFK): ETF Research Reports FT Vest Technology Dividend Target Income ETF (TDVI): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Oracle stock touches all-time high after earnings beat
Oracle stock (ORCL) jumped 14% on Thursday to touch an all-time high of $202.44 after the company's fiscal fourth quarter results topped Wall Street's expectations. Oracle's adjusted revenue of $15.9 billion was ahead of the projected $15.6 billion, while its earnings per share of $1.70 surpassed the expected $1.64. The company raised its annual revenue forecast, as it expects strong demand for its AI cloud services. "What is clear is that more customers will use the Oracle database to leverage AI," CEO Safra Ada Catz told analysts in a call after the market close Wednesday. Catz said she expects the company's fiscal year 2026 revenue to hit 'at least $67 billion,' up from the prior guidance of $66 billion. Synovus vice president Dan Morgan told Yahoo Finance that Oracle is seen as a safer AI stock relative to its peers amid Trump's trade war. "They seem to be in a better position when we think of AI than, let's say, some of the chipmakers who are so reliant on manufacturing in China, in the Pacific Rim, who obviously would be devastatingly impacted by tariffs," Morgan said. Following the results, analysts at JPMorgan, Jefferies, UBS, Deutsche Bank, and other investment firms raised their price targets on the stock to as high as $240 on Thursday. 'Overall, we continue to respect Oracle's achievements in the AI arena while remaining mindful of valuation,' JPMorgan analyst Mark Murphy wrote in a note to investors Thursday morning. In his own note, Jefferies analyst Brent Thill observed that Oracle trades at 32 times its projected calendar year 2026 earnings, while Microsoft (MSFT) has a 2026 forward price-to-earnings ratio of 29. Thill has a Buy rating on Oracle stock and raised his price target on shares to $220 from $200. JPMorgan's Murphy, who also raised his price target to $185 from $135, holds a Neutral rating on the stock. Oracle's financial results had come in below expectations in the prior two quarters. "It's been a long wait for people who own the stock because ... [Oracle] missed the last two quarters, both on the top and the bottom line, despite the fact that they were booking an enormous amount of business," Citizens head of technology equity research Pat Walravens said on Market Domination Overtime. Oracle is set to invest $7 billion in the so-called Stargate AI project, according to Bloomberg, though the project has reportedly hit snags amid President Trump's trade war. 'So the reality is that Stargate is still in formation,' Catz said. The company's capital expenditure forecast for its 2026 fiscal year of $25 billion was ahead of Wall Street's estimate of $20 billion, and Catz said it 'may turn out to be understated.' 'We will build and operate more cloud infrastructure data centers than all of our cloud infrastructure competitors combined,' chairman Larry Ellison said on the call with analysts Wednesday. 'It is worth considering that the upward CapEx revision for FY26 is substantial, largely wiping out any positive FCF [free cash flow] Oracle would have otherwise produced,' JPMorgan's Murphy wrote. Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at Sign in to access your portfolio
