Oracle experienced one of the company's strongest quarters in years thanks to its growing cloud revenue.

The company reported total cloud revenues increased 58 percent year-over-year to $1.4 billion in fiscal fourth quarter 2017.

Oracle’s total fourth quarter revenue was up 3 percent to $10.9 billion. Meanwhile, its hardware revenue was $1.1 billion, down 13 percent from last year.

With its legacy business in decline, Oracle has been aggressively growing its cloud business. This includes cloud software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS). The company has said it is the fastest growing cloud company compared to competitors like Amazon Web Services (AWS), Microsoft Azure, IBM Cloud, and Google Cloud Platform.

Its growth strategy seems to be working.

Comparing the fiscal fourth quarter of 2017 to the same quarter last year, Oracle’s SaaS cloud revenues were up 67 percent to $964 million. Cloud PaaS plus IaaS revenues rose 40 percent to $397 million.

Additionally, cloud plus on-premise software revenues were up 5 percent to $8.9 billion.

Expect to see even more impressive revenue growth in fiscal year 2018, said Oracle CTO Larry Ellison, on the company’s earnings call this week.

“During this new fiscal year, we expect both our PaaS and IaaS businesses to accelerate into hyper growth, the same kind of growth we are seeing with SaaS,” Ellison said, according to a Seeking Alpha transcript of the call. “As our customers begin to migrate their millions of Oracle databases to generation two of the Oracle public cloud, the AT&T deal is just the beginning. We expect that our Oracle PaaS and IaaS businesses will grow so fast that they will be even bigger than our SaaS business.”

In May, Oracle scored a major cloud customer win with AT&T. The telecommunication operator will move thousands of its internal databases to the Oracle Cloud IaaS and PaaS.

Oracle’s strong fourth quarter report on Wednesday sent its stock to a 52-week high of $51.85 on Thursday morning. Analysts expect the stock price to rise even higher, setting the new average target to $53.64 — 11 percent above the average target of $48.32 the day before Oracle released its fourth quarter results.

“We are raising our FY18 revenue, profit and FCF estimates, while maintaining mid-teens license revenue declines throughout our forecast period,” said BMO Capital Markets analyst Keith Bachman in a research note. “We maintain our Outperform rating, and we are raising our target price from $48 to $57.”

BMO Capital Markets also forecast Oracle’s SaaS revenue will reach $4.84 billion in fiscal year 2018 and $6.21 billion in fiscal year 2019, growing by about 28 percent. “We forecast PaaS-IaaS revenue of $1.84 billion in FY18 and $2.39 billion in FY19, or ~30% CC growth, driven by increased adoption of PaaS offerings.”