Oracle ORCL uses Oracle Cloud Infrastructure (OCI) to stimulate AI growth. In the fourth quarter of the tax 2025, the income of OCI consumption increased by 62%, which is a reflection of the rising demand for powerful computing, in particular for AI and agent workload. Infrastructure Cloud Services now have a turnover of almost $ 12 billion. Oracle reported $ 6.7 billion in total cloud income in the fourth quarter of the tax 2025, suggesting that 27% growth on an annual basis.
To further stimulate his AI possibilities, Oracle introduced a partnership with AMD on 12 June. The company integrates AMD Instinct MI355X GPUs in Oracle Cloud Infrastructure. The collaboration offers more than 2x price performance compared to the previous generation, which makes significant efficiency profit possible for large-scale AI training and inference work burden.
Another important engine of the Oracle cloud momentum is the aggressive global expansion of data center. The company is currently live in 23 cloud regions with a database about cloud services and has planned another 47. The OCI income is expected to grow more than 70% in tax 2026.
To support this aggressive expansion, Oracle has deployed $ 9.1 billion in capital expenditure in the reported quarter, a total of $ 21.2 billion in tax 2025. The company is planning to invest $ 25 billion in tax 2026.
Oracle has been performed his cloud ambitions, but the company is confronted with formidable rivals such as Amazon‘S Amzn Cloud Computing Arm, Amazon Web Services (“AWS”) and Microsoft‘s MSFT Azure.
AWS remains the world leader in cloud infrastructure and orders approximately one third of the market. The growing customer base of Enterprise and Cloud Services with high margins continue to strengthen the Dominance of Amazon in Iaas and Paas. The Cloud Division remains a considerable profit engine for Amazon, powered by premium services and a growing selection of Fortune 500 customers.
Microsoft Azure stands out in the Cloud Computing landscape for its seamless Enterprise integration and deep tires with the wider software ecosystem from Microsoft. Microsoft Azure excels in the inclusion of advanced AI options directly in frequently used business applications such as Microsoft 365, Dynamics 365 and Github. With activities in more than 60 worldwide regions, Microsoft Azure supplies scalable solutions on software, platforms and infrastructure.
So far, shares of Oracle have won 26.6% compared to the growth of the Zacks computer -software -industry of 11%.
Image source: Zacks Investment Research
From a valuation position, ORCL acts on an EV/EBITDA multiple of 26.7x, considerably higher than the Zacks computer software industry average of 19.24x. This increased multiple indicates that the market has probably priced in strong expectations for the future growth of Oracle.
