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Today at a glance:
☁️ Oracle: Cloud Demand Outpaces Supply
🎨 Adobe: Skepticism Lingers
🐶 Chewy: Autoship Momentum Builds
🎮 GameStop: Buying Time With Bitcoin
🛠️ GitLab: AI Growth Meets Higher Scrutiny
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1. ☁️ Oracle: Cloud Demand Outpaces Supply
Oracle closed FY25 strong, with Q4 revenue growing 11% Y/Y to $15.9 billion ($310 million beat), and EPS of $1.70 (a $0.06 beat).
Cloud remains the growth engine: IaaS revenue jumped 52% to $3 billion, SaaS rose 12% to $3.7 billion, and total cloud grew 27% to $6.7 billion. Remaining performance obligations (a leading indicator) surged 41% to $138 billion.
Looking ahead, CEO Safra Catz set aggressive targets: over 40% cloud growth in FY26, including over 70% for infrastructure. That’s miles ahead of AWS’s 19% growth in 2024, though Oracle’s cloud business still trails far in absolute size.
Some big swings are still in early innings. Stargate—the ambitious $500 billion AI data center joint venture with OpenAI and SoftBank—is “not yet formed,” a sign of delays amid economic volatility and tariff uncertainty. Still, Oracle is plowing ahead with global data center expansion, planning to triple multicloud capacity and capex rising to $25 billion this year. Larry Ellison declared Oracle will one day outbuild all its cloud rivals—though the timeline remains theoretical. For now, Oracle’s AI and infrastructure bets are translating into real momentum, and Wall Street is buying it, with shares rising post earnings.
2. 🎨 Adobe: Skepticism Lingers
Adobe’s Q2 revenue grew 11% Y/Y to $5.9 billion ($50 million beat) and EPS was $5.06 ($0.09 beat). Full-year guidance saw a big lift to ~$23.55 billion in revenue in the midrange ($125 million raise). The Digital Media segment, home to Creative Cloud and Document Cloud, grew 11% to $4.3 billion, while Digital Experience rose 10% to $1.46 billion. RPO rose 10% Y/Y to $19.7 billion, a slowdown from 12% Y/Y in Q1. Adobe repurchased 8.6 million shares in the quarter. CFO Dan Durn cited strong AI adoption as a key driver, noting that Firefly—Adobe’s generative AI model—has now powered over 24 billion content creations.
Still, skepticism lingers. While Adobe continues to expand its AI footprint with new tools and subscriptions, some investors remain wary of rising competition from upstarts like Canva, Figma, Midjourney, and Runway. Analysts debate whether Adobe is a winner or a laggard in the AI race, even as it raises guidance and maintains strong cash flow. With AI revenue still a fraction of the whole (~$250 million in ARR expected by the end of FY25), Adobe’s long-term upside may hinge on proving it can not only defend but expand its creative moat in the age of generative design.
3. 🐶 Chewy: Autoship Momentum Builds
Chewy’s Q1 revenue rose 8% Y/Y to $3.1 billion ($40 million beat), and adjusted EPS reached $0.35 ($0.01 beat). Active customers increased by 4% to 21 million, with net sales per customer rising 4% to $583.
Autoship sales surged 15% and now make up a record 82% of revenue. Gross margin expanded to 30%, and adjusted EBITDA hit $193 million (6% margin). Chewy delivered solid free cash flow and repurchased $23 million in stock. Key initiatives like Chewy Vet Care and Chewy+ membership are gaining traction, supporting long-term ecosystem growth. But none of this mattered.