Oracle Corporation (ORCL) Surged on Strong Results

Janus Henderson Investors, an investment management company, released its “Janus Henderson Forty Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 19.34% in the second quarter, compared to the Russell 1000 Growth Index’s 17.84% return.  Stock selection in the information technology and industrials sectors contributed to the relative performance of the fund in the quarter, while stock selection and an overweight in healthcare detracted. US equities delivered strong results in the second quarter despite early tariff worries in April. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Janus Henderson Forty 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 -10.45%, and its shares gained 60.05% of their value over the last 52 weeks. On August 29, 2025, Oracle Corporation (NYSE:ORCL) stock closed at $226.13 per share, with a market capitalization of $635.161 billion.

Janus Henderson Forty Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its second quarter 2025 investor letter:

"Oracle Corporation (NYSE:ORCL) was a top contributor to relative performance. The company posted strong results with significant growth in remaining performance obligations, which the market viewed favorably as an indicator of future revenue growth. The enterprise software company has successfully established itself as a major cloud provider by procuring GPU availability ahead of other hyperscalers and making architectural decisions that allow smaller, compartmentalized clouds versus competitors’ mega-clouds. This technology advantage has helped Oracle win sovereign deals globally and positions the company well as AI deployment continues."

Oracle Corporation (NYSE:ORCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 124 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the second quarter, which was 97 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 the list of top stocks to buy from Goldman Sachs tech stocks. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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