Premier Foods shares drop after grocery sales hit by hot weather
Following a successful financial year, Oracle (NYSE:ORCL) CEO Safra Catz forecasts strong growth in the cloud segment. The expansion of data centres and the use of AI applications are expected to drive growth. The division is expected to grow by over 70 per cent. Investors are enthusiastic and have driven the share price up by a whopping +27 per cent since the figures and outlook were published.
This, and the fact that we made substantial additional purchases on 14 April 2025, has secured Oracle first place in our share portfolio.
After a mixed previous quarter, US software group Oracle now expects a significant upturn in its data centre business. Revenue in the cloud infrastructure segment (IaaS), which is considered a growth driver, is expected to increase by more than 70 per cent in the new 2025/26 financial year (ending in May), following a 50 per cent increase in the previous year.
‘The past fiscal year was excellent, but the coming year could deliver even better results – with dramatically higher growth rates,’ Oracle CEO Safra Catz (63) said in a statement on Wednesday, 11 June 2025, after the close of trading in Austin, Texas. The shares of the company, which is considered a competitor of SAP SE (ETR:SAPG), rose by more than 6 per cent in after-hours trading alone.
Are the Shares Still Worth Buying?
In a direct comparison between Oracle and SAP, SAP could rise slightly more (+44%) than Oracle (+40%) in the medium term, but Oracle clearly has greater potential in the long term.
While SAP shares are approaching the end of their overall cycle and will then undergo a very sharp correction, Oracle is in a very strong upward trend that could continue for several years. We show how the two stocks will perform in detail on our website and in the video on our YouTube channel. You can find the English-dubbed version of our video below this article.
The technical indicators from InvestingPro also point upwards for Oracle:
After a period of weakness at the beginning of the year, Oracle shares have regained about half of their value since April. If the positive trend continues, the company’s market capitalisation could once again exceed the USD 500 billion (GBP 438 billion) mark. By way of comparison, SAP, the German market leader, currently has a market capitalisation of EUR 323 billion.
Oracle is currently focusing on a business area in which SAP is hardly active: the operation of data centres for cloud applications. The use of artificial intelligence is also expected to boost business. Although revenue in this area fell slightly short of expectations at $3.0 billion in the fourth quarter, the positive outlook for the cloud sector convinced investors.
Moderate Growth Compared to SAP
In the past fiscal year, Oracle increased its total revenue by 8 percent to 57.4 billion dollars. In direct competition with SAP’s cloud solutions for enterprise software, Oracle achieved growth of around 20 percent – slower than its competitor from Walldorf. Nevertheless, Oracle was able to increase its net profit by almost a fifth to over 12 billion dollars.
Disclaimer/Risk warning:
The information provided here is for informational purposes only and does not constitute a recommendation to buy or sell. It should not be understood as an explicit or implicit assurance of a particular price development of the financial instruments mentioned or as a call to action. The purchase of securities involves risks that may lead to the total loss of the capital invested. The information provided does not replace expert investment advice tailored to individual needs. No liability or guarantee is assumed, either explicitly or implicitly, for the timeliness, accuracy, appropriateness or completeness of the information provided, nor for any financial losses. These are expressly not financial analyses, but journalistic texts. Readers who make investment decisions or carry out transactions based on the information provided here do so entirely at their own risk. The authors may hold securities of the companies/securities/shares discussed at the time of publication and therefore a conflict of interest may exist.