Oracle (ORCL) Surged as Its Earnings and Revenue Growth Exceeded Expectations

Impax Asset Management, an investment management company, released its “Impax US Sustainable Economy Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. In 2025's second quarter, tariffs triggered market declines and recession fears, but a pause in tariffs sparked a historic rally as earnings remained resilient. In the second quarter of 2025, the fund underperformed the Russell 1000 benchmark. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Impax US Sustainable Economy Fund 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 8.42%, and its shares gained 103.07% of their value over the last 52 weeks. On August 5, 2025, Oracle Corporation (NYSE:ORCL) stock closed at $255.67 per share, with a market capitalization of $718.134 billion.

Impax US Sustainable Economy Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its second quarter 2025 investor letter:

"Oracle Corporation (NYSE:ORCL) (Information Technology, Systems Software), which is held due to its high Corporate Resilience score and exposure to the ‘enhancing productivity’ theme through software and resource efficiency and optimization, reported earnings and revenue growth exceeding analysts' expectations. Customer commitments are projected to double next year, contributing to a significant backlog in calendar year 2026. Additionally, the company announced plans to purchase US$40bn-worth of Nvidia chips for collaboration with OpenAI on US data center capacity."

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, compared to 105 in the previous quarter. While we acknowledge the potential of Oracle Corporation (NYSE:ORCL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Oracle Corporation (NYSE:ORCL) and shared list of best performing AI stocks so far in 2025. Oracle (NYSE:ORCL) contributed to Aristotle Atlantic Core Equity Strategy's Q2 2025 performance with strong results. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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