Oracle Corporation’s (ORCL) Revenue Growth Lagged Despite Robust Bookings Growth

Madison Investments, an investment advisor, released its “Madison Sustainable Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here.  In the first quarter, the S&P 500 had a total return of -4.3%, with a significant -5.6% drop in March. This decline was mainly due to the impact of tariffs, which hurt business and consumer confidence. Expectations for strong economic growth and deregulation have decreased as the new administration’s trade priorities have become clearer. The strategy returned -3.32% (Gross) in the quarter compared to -4.27% for the index. Both sector allocation and security selection were positive during the quarter. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its first-quarter 2025 investor letter, Madison Sustainable Equity Strategy highlighted stocks such as Oracle Corporation (NYSE:ORCL). Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments. The one-month return of Oracle Corporation (NYSE:ORCL) was 10.65%, and its shares gained 26.12% of their value over the last 52 weeks. On June 11, 2025, Oracle Corporation (NYSE:ORCL) stock closed at $176.38 per share, with a market capitalization of $494.61 billion.

Madison Sustainable Equity Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q1 2025 investor letter:

Oracle Corporation’s (NYSE:ORCL) Cloud Infrastructure (called ‘OCI’) business continues to progress well with robust bookings growth. During the third fiscal quarter the company added $48 billion to its backlog, which now totals $130 billion, showing strong future demand. Despite strong bookings growth, the company’s revenue growth is not growing as fast, indicating that there are delays associated with building additional data center capacity. The company has pointed to component delays but also expects these delays to ease soon.”

Oracle (ORCL) Unveils AI Upgrades to Utilities Platform to Streamline Operations and Cut Costs

A team of IT professionals meticulously crafting a large-scale enterprise performance management system.

Oracle Corporation (NYSE:ORCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 97 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the first quarter, which was 105 in the previous quarter. While we acknowledge the potential of Oracle Corporation (NYSE:ORCL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Oracle Corporation (NYSE:ORCL) and shared the list of stocks on Jim Cramer’s radar. The Q1 2025 investor letter of Carillon Eagle Growth & Income Fund cited the same reasons for Oracle Corporation’s (NYSE:ORCL) decline. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.