What Makes Oracle (ORCL) a Strong Technology Company?

Janus Henderson Investors, an investment management company, released its “Forty Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities surged in the third quarter on positive corporate earnings news and hopes for Federal Reserve (Fed) rate cuts. The fund returned 8.38% in the third quarter, compared to the Russell 1000 Growth Index’s 10.51% return. Stock selection in the healthcare sector contributed to the relative performance of the fund in the quarter, while stock selection in the consumer discretionary sector detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-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 -10.77%, and its shares gained 14.68% of their value over the last 52 weeks. On December 11, 2025, Oracle Corporation (NYSE:ORCL) stock closed at $198.85 per share, with a market capitalization of $566.88 billion.

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

"Oracle Corporation (NYSE:ORCL) was a positive contributor. The technology company has emerged as a leading player in the AI market, supported by its strong competitive position and close relationships with leading AI and hyperscaler partners. Oracle reported strong second-quarter results and exceptional forward guidance, especially for its Oracle Cloud Infrastructure business. The company has signed several multibillion-dollar contracts that have led to a large increase in remaining performance obligations, which represent expected future revenues from existing customer relationships. This news gave us added confidence in Oracle’s market opportunity and earnings visibility."

Oracle Corporation (NYSE:ORCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 122 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the third quarter, which was 124 in the previous quarter. In the second quarter of fiscal 2026, Oracle Corporation (NYSE:ORCL) reported total revenues of $16.1 billion, up 13% compared to Q2 last year. 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 AI stocks analysts are watching closely. In addition, please check out our hedge fund investor letters Q3 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.