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Oracle (ORCL +13%) is trading sharply higher after wrapping up FY25 on a bullish note with its Q4 (May) earnings report last night. After missing on EPS in three of the prior four quarters, Oracle reported its largest EPS beat in two years. Revenue rose 11.3% yr/yr to $15.90 bln, which was its first double-digit growth quarter in two years. Oracle also provided in-line guidance for Q1 (Aug).

• The company noted on the call that, a few years ago, it said it would reach a tipping point in its cloud transition and expected revenue growth to accelerate. That time has come. Oracle noted it hit double-digit revenue growth in Q4 and made a strong statement: that it's only going up from here, even as the company gets bigger.
• RPO is a key metric, it grew 41% yr/yr to $138 bln, not quite the +62% growth we saw in Q3 (Feb), but Q3 was Oracle's strongest booking quarter ever by a huge margin. This RPO number was still very good and it grew 6% sequentially. And Oracle said the best is still yet to come.
• Oracle said it's still in a position where its supply is not meeting demand. Oracle is actually still waiving off customers or scheduling them out into the future until it has enough supply to meet demand. Oracle said this is a situation that it has never seen in its history.
• A key potential growth catalyst for Oracle is being a partner in the Stargate Project, a massive AI infrastructure initiative that also includes OpenAI, SoftBank, and MGX. The goal is to deploy a number of large data centers across the US to develop and deploy AI technology on a large scale. Oracle noted that, if Stargate turns out to be everything as advertised, then Oracle has understated its RPO growth.

Our takeaway from this Q4 report is that investors are pleased to see the large upside after some recent iffy quarters relative to consensus. Also, management stated that it now expects it will exceed the revenue growth target previously provided for FY27. And beyond FY27, it's even more confident in its ability to meet and likely exceed prior targets for FY29. Oracle is a large company and companies this size rarely talk about revenue growth accelerating two years out. This result bodes well for other tech names set to start reporting next month.