Loomis Sayles Global Growth Fund's Thoughts on Oracle (ORCL)

Loomis Sayles, an investment management company, released its “Global Growth Fund” investor letter for the fourth quarter of 2025.  A copy of the letter can be downloaded here. The Fund prioritizes investments in high-quality companies that possess a lasting competitive advantage and long-term growth drivers, capable of generating attractive cash flow and sustained value for investors. The Fund returned -3.05% in Q4 2025 compared to 3.29% for the MSCI ACWI Index Net. As a patient investor, the firm maintains coverage of high-quality businesses to capitalize on meaningful price dislocations. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Loomis Sayles Global Growth Fund highlighted stocks like Oracle Corporation (NYSE:ORCL). Oracle Corporation (NYSE:ORCL) is a global leader in enterprise information technology. On February 12, 2026, Oracle Corporation (NYSE:ORCL) stock closed at $156.48 per share. One-month return of Oracle Corporation (NYSE:ORCL) was -18.11%, and its shares are down 10.15% over the past twelve months. Oracle Corporation (NYSE:ORCL) has a market capitalization of $449.738 billion.

Loomis Sayles Global Growth Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its fourth 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.

A fund holding since inception, in September, Oracle shares rose by approximately 25% to an all-time high after reporting that remaining performance obligation (RPO) bookings, a forward-looking measure of revenue, grew 359% year over year to $455 billion, which was almost three-times greater than consensus expectations. In the most recent quarter, the company reported that RPO grew by a further $68 billion to reach $523 billion. The shares have since given up all those gains on concerns regarding the company’s elevated capital investments to support the conversion of the RPO backlog into revenue and the associated need to fund those investments, as well as the degree of customer concentration in the RPO backlog. Given Oracle’s high degree of recurring revenue, attractive operating margins, and high cash flow returns on invested capital, we believe the company can support higher levels of indebtedness, and we expect the backlog to become more diversified over time. There is no change to our structural investment thesis for the company, and shares still returned 18% for the year.…” (Click here to read the full text)

Oracle Corporation (NYSE:ORCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 122 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the third quarter, down from 124 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 a list of trending AI stocks according to analysts. In addition, please check out our hedge fund investor letters Q4 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.