Analyst Explains The Reason Behind Oracle’s (ORCL) ‘Booming Business’

Wed, Sep 17, 2025, 9:10 AM 3 min read

We recently published 10 Stock News You Should Pay Attention To. Oracle Corp (NYSE:ORCL) is one of the stocks to watch in September.

Oracle Corp (NYSE:ORCL) shares skyrocketed after the company’s latest quarterly results. The company said it expects booked revenue to exceed $0.5 trillion. Oracle’s moat is its strong roots in enterprise databases and ERP software that are in high demand with large clients like banks and hospitals. Oracle Corp (NYSE:ORCL) differentiates itself by offering cheaper cloud services while integrating SaaS, ERP, and HCM, creating high switching costs and a durable moat.

Answering a question about Oracle, Goldman Sachs Global Institute Co-Founder George Lee said in a recent program on CNBC that the demand for compute is driving the growth of companies like Oracle Corp (NYSE:ORCL).

“It’s certainly an extraordinary market event for a company of that scale for sure. I think it just reflects this situation we find ourselves in where the infrastructure boom is so profound and yet we find ourselves in a moment of capacity constraint. There just aren’t enough compute cycles to meet the demand for tokens in the world. And so Oracle’s booming business, the booming business of all these hyperscalers, they’re delivering this these computational cycles. It’s just a commentary on on what we see in the in the kind of demand and consumption profile of intelligent tokens.”

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Loomis Sayles Growth Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its second quarter 2025 investor letter:

“Oracle Corporation (NYSE:ORCL) is a leader in the enterprise software market with a strong market position in database, infrastructure and application software, and cloud-based software and services. We believe the company’s competitive advantages include its large and experienced direct sales force, a founder-driven management team that reinvests relentlessly to maintain a leading intellectual property (IP) portfolio and differentiated product suite, and a large installed base of clients with high switching costs where it consistently achieves renewal and retention rates in the mid-90% range. We believe Oracle is well positioned to benefit from the continuing growth in data storage and enterprise application software, as well as the shift to cloud-based solutions.