TMTB: ORCL +4% First Takes

Jun 11, 2025

∙ Paid

Beats headline revs and EPS, but OCI growth of 52% light of buyside bogeys of 55%+. BUT FY26 guide a lot better…

ORCL set a far higher cloud-growth bar in FY26 (cloud growth expected >40%+ / >70 % IaaS growth / RPO +100%+ growth) than street, framing FY26 as an inflection year driven by multicloud and Cloud@Customer uptake.

Expectations had crept up into the print, but FY26 guidance a lot better than expected as capacity constraints ease in 2H of the CY

Guidance / outlook vs expectations

FY26 Cloud growth (IaaS + SaaS) “>40 %” and IaaS “>70 %.” Street and buyside models were closer to +34 % cloud and mid-50 % IaaS, so management is signaling a meaningfully faster ramp than consensus.
Total revenue: management reiterated a constant-currency ~15 % y/y FY26 target, a point ahead of Street’s ~14 % and in line with buyside bogey.
Management also expects RPO to grow >100 % in FY26, well above street/buyside

Q4 Details:

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