1、CrispIdea|R E S E A R C HOracle CorporationE Q U I T Y R E S E A R C H Technology|Software Infrastructure|Aug 06,2025Oracle CorporationStrategic pivot intact,but wait for better entryWe downgrade our recommendation to HOLD for Oracle and upgrade the TP to$259.16 for FY26.This TP provides an upside p

2、otential of 6.03%over the CMP of$244.42.Our TP is based on forward EV/EBITDA of 22x,forward P/E of 29.02x,and EPS of$8.42 for FY26.Our estimates are based on the following factors:1)Explosive Cloud Infrastructure Demand Fueled by AI 2)Cloud Applications Leadership and Growing Recurring Base and 3)Ro

3、bust Backlog and Financial Engine Providing Growth VisibilityExplosive Cloud Infrastructure Demand Fueled by AI:Oracles cloud infrastructure business is experiencing a rapid growth inflection driven by surging demand for artificial intelligence compute and its differentiated multi-cloud strategy.In

4、Q4 FY25,Oracles cloud infrastructure revenue rose 52%year-over-year to$3bn,capping off a full-year growth of 50%.Cloud consumption revenue was up 62%in the quarter,reflecting intense customer demand.Oracles multi-cloud database service,which allows workloads to run seamlessly in AWS,Azure,and Google

5、 Cloud,saw revenue jump 115%Q/Q.Cloud Customer deployments,which bring Oracles cloud to customer premises,grew 104%Y/Y.These gains reflect Oracles technical differentiation in areas such as AI-optimized GPU infrastructure,high-speed networking,and the Autonomous Database,all of which are increasingl

6、y attractive for enterprise workloads.Oracles latest 23 AI version of its database enables secure and immediate access to large language models using enterprise data,a feature that is uniquely integrated into its cloud offering.With annualized cloud infrastructure revenue now near$12 billion,Oracle