Cloud Powers Oracle’s Q4 Earnings: ETFs to Benefit

Date: June 13, 2025
By: Sweta Killa

Oracle Corporation (ORCL) announced strong financial results for the fourth quarter of fiscal 2025, exceeding expectations for both earnings and revenue. This performance reflects the company’s significant investment in cloud infrastructure, which has become a crucial selling point as businesses increasingly adopt artificial intelligence (AI) technologies. Following the announcement, Oracle’s stock surged by about 8% in after-market trading, suggesting renewed investor confidence.

Oracle’s Financial Performance

For the fourth quarter of fiscal 2025, Oracle reported earnings per share (EPS) of $1.70, surpassing the Zacks Consensus Estimate of $1.64 and up from $1.63 the previous year. The company’s revenue rose 11% year-over-year to $15.9 billion, also beating the expected $15.54 billion.

A significant portion of Oracle’s revenue growth came from its cloud infrastructure segment, which experienced a remarkable 52% increase year-over-year, contributing $3 billion to the total revenue. In light of this robust performance, Oracle has raised its revenue growth forecast for fiscal 2026, now anticipating at least $67 billion in total revenue—approximately a 16.7% increase from the previous fiscal year. This marked increase from a prior expectation of 15% underscores Oracle’s optimistic outlook on sustained demand for its cloud offerings.

Oracle CEO Safra Catz projected that revenues from cloud infrastructure will grow more than 70% in fiscal 2026, an increase from the 50% growth rate observed in fiscal 2025. Looking ahead, Catz expressed confidence that Oracle will exceed its $104 billion revenue target for fiscal 2029. ## ETFs Likely to Benefit

With Oracle’s stock performance showing potential for continued growth, several exchange-traded funds (ETFs) heavily invested in Oracle may see gains. Notable funds with substantial allocations to Oracle include:

1. Pacer Data and Digital Revolution ETF (TRFK)

The Pacer Data and Digital Revolution ETF aims to expose investors to companies driving the data and digital revolution. It tracks the Pacer Data Transmission and Communication Revolution Index and has Oracle as its third-largest holding, making up 10.5% of the fund’s assets. TRFK has $63.6 million in assets and charges annual fees of 0.60%.

2. iShares Expanded Tech-Software Sector ETF (IGV)

Tracking the S&P North American Expanded Technology Software Index, the iShares Expanded Tech-Software Sector ETF provides exposure to software companies. With Oracle comprising 8.5% of its total assets, this ETF holds a diverse portfolio of 115 securities. IGV manages approximately $11.8 billion and has a relatively low annual fee of 0.41%.

3. Janus Henderson Transformational Growth ETF (JXX)

The Janus Henderson Transformational Growth ETF focuses on companies benefiting from long-term trends such as AI and cloud migration. Oracle holds the second position in this fund, making up 8.1% of its assets. JXX has an asset base of $23.5 million and charges 0.57% in annual fees.

4. First Trust NASDAQ Technology Dividend Index Fund (TDIV)

Targeting technology firms that pay dividends, the First Trust NASDAQ Technology Dividend Index Fund includes Oracle as its fifth-largest holding, representing 6.8% of its assets. TDIV currently manages about $3.1 billion and charges annual fees of 0.50%.

Conclusion

Oracle’s strong financial results, driven primarily by its cloud computing services, position it well for future growth. As the company continues to benefit from increasing demand for AI-driven solutions, investors in ETFs with significant Oracle allocations may find opportunities for enhanced returns in the coming fiscal year.

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