Latest news with #MultiCloud
Yahoo
9 hours ago
- Business
- Yahoo
Oracle Stock (ORCL) Delivers Strong Quarter as Cloud and AI Strategy Pays Off
Oracle (ORCL) has just wrapped up its quarterly reporting period with impressive results. Revenue rose 11% year-over-year to $15.9 billion, beating expectations with ease. Non-GAAP earnings per share came in at $1.70, topping the consensus estimate of around $1.65. In my view, Oracle's bold investments in Cloud services—particularly Oracle Cloud Infrastructure (OCI)—are clearly bearing fruit. I'm bullish on the stock, as Oracle continues to demonstrate resilience and leadership in both Cloud and AI. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Oracle's Cloud segments were the clear standouts in Q4. Total Cloud revenue—which includes both Infrastructure as a Service (IaaS) and Software as a Service (SaaS)—jumped 27% year-over-year to roughly $6.7 billion. The real highlight was Oracle Cloud Infrastructure (OCI), which surged 52% to reach $3 billion, underscoring Oracle's aggressive push to capture AI-heavy workloads in the Cloud Infrastructure space. A key driver behind Oracle's Cloud momentum is its smartly executed multi-cloud strategy. On the earnings call, Larry Ellison revealed that Oracle's MultiCloud database services—used by customers on Amazon (AMZN), Microsoft Azure (MSFT), and Google Cloud (GOOGL)—soared 115% quarter-over-quarter. This approach is savvy, as it turns would-be rivals into collaborators. With enterprise demand rising for hybrid and multi-cloud solutions, Oracle is carving out a distinct competitive edge among the major cloud providers. One of the key reasons I'm bullish on Oracle's long-term growth is its record-high backlog of contracts, formally known as Remaining Performance Obligations (RPO). This quarter, RPO surged 41% year-over-year to an all-time high of $138 billion. That's a strong signal of sustained demand, providing a significant level of revenue visibility and stability for shareholders over the coming years. Management attributed much of this backlog growth to major contracts with companies like OpenAI, Meta (META), Nvidia (NVDA), and AMD (AMD). CEO Safra Catz expressed evident enthusiasm, projecting that Oracle's Cloud business will grow by more than 40% in Fiscal 2026, with OCI continuing to expand at a rate above 70%. Oracle deserves real credit here—its momentum is undeniable, and Larry Ellison remains the quintessential relentless tech visionary, pushing the company to the forefront of the Cloud and AI revolution. Scaling Oracle's Cloud business comes with a hefty price tag. In FY2025, the company invested roughly $21.2 billion in capital expenditures, reflecting its aggressive buildout of GPU clusters and data centers. While these substantial investments did put some pressure on margins—non-GAAP operating margin dipped slightly to about 44%, down from 47% last year—I view this as a reasonable and strategically sound tradeoff. Crucially, Oracle remains solidly profitable and financially strong. Operating cash flow for the year reached an impressive $20.8 billion, providing the company with ample capacity to reinvest in future growth. Management made it clear on the earnings call that these upfront investments are designed to drive high-margin, recurring revenue over time, essentially laying the groundwork for long-term profitability. With around $18 billion in cash and short-term investments, Oracle appears to have the financial flexibility to fund its expansion without overburdening its balance sheet. While I'm optimistic about Oracle's growth potential, it's essential to acknowledge the risks. Management's aggressive expansion strategy hinges on flawless execution and sustained demand. If enterprise IT spending slows, if overall demand for public Cloud services weakens, or if customers shift more quickly toward AWS or Azure, Oracle's growth trajectory could face headwinds. Additionally, Oracle is making significant capital investments while also aiming to deliver strong returns to shareholders. This high-stakes approach means that any misstep or shortfall in demand could result in the company having costly, underutilized infrastructure. However, given Oracle's recent track record, management's demonstrated competence, and the sheer scale of its secured backlog, I believe these risks are manageable and well within the company's capacity to navigate. On Wall Street, Oracle has a consensus Moderate Buy rating based on 15 Buys, 12 Holds, and zero Sells. The average ORCL price target of $192.91 indicates a 3.5% downside potential over the next 12 months. This means that, despite the company's current operational and financial strengths, the market has likely priced Oracle stock too high in the short term. It's probably best to wait for a pullback before buying shares. Oracle's quarterly results strengthen my confidence in the sustained upward trajectory of Oracle's operating model. What was once a bold and uncertain Cloud transformation is now clearly delivering results. Oracle's heavy investment in OCI, its strategic focus on multi-cloud architecture and partnerships, and its sizable backlog of signed contracts all point to long-term, market-leading growth that appears both durable and well-earned. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
a day ago
- Business
- Business Insider
Oracle Stock (ORCL) Delivers Strong Quarter as Cloud and AI Strategy Pays Off
Oracle (ORCL) has just wrapped up its quarterly reporting period with impressive results. Revenue rose 11% year-over-year to $15.9 billion, beating expectations with ease. Non-GAAP earnings per share came in at $1.70, topping the consensus estimate of around $1.65. In my view, Oracle's bold investments in Cloud services—particularly Oracle Cloud Infrastructure (OCI)—are clearly bearing fruit. I'm bullish on the stock, as Oracle continues to demonstrate resilience and leadership in both Cloud and AI. Confident Investing Starts Here: Cloud Growth Takes Center Stage Oracle's Cloud segments were the clear standouts in Q4. Total Cloud revenue—which includes both Infrastructure as a Service (IaaS) and Software as a Service (SaaS)—jumped 27% year-over-year to roughly $6.7 billion. The real highlight was Oracle Cloud Infrastructure (OCI), which surged 52% to reach $3 billion, underscoring Oracle's aggressive push to capture AI-heavy workloads in the Cloud Infrastructure space. A key driver behind Oracle's Cloud momentum is its smartly executed multi-cloud strategy. On the earnings call, Larry Ellison revealed that Oracle's MultiCloud database services—used by customers on Amazon (AMZN), Microsoft Azure (MSFT), and Google Cloud (GOOGL) —soared 115% quarter-over-quarter. This approach is savvy, as it turns would-be rivals into collaborators. With enterprise demand rising for hybrid and multi-cloud solutions, Oracle is carving out a distinct competitive edge among the major cloud providers. Record Backlog Signals Solid Revenue Growth Ahead One of the key reasons I'm bullish on Oracle's long-term growth is its record-high backlog of contracts, formally known as Remaining Performance Obligations (RPO). This quarter, RPO surged 41% year-over-year to an all-time high of $138 billion. That's a strong signal of sustained demand, providing a significant level of revenue visibility and stability for shareholders over the coming years. Management attributed much of this backlog growth to major contracts with companies like OpenAI, Meta (META), Nvidia (NVDA), and AMD (AMD). CEO Safra Catz expressed evident enthusiasm, projecting that Oracle's Cloud business will grow by more than 40% in Fiscal 2026, with OCI continuing to expand at a rate above 70%. Oracle deserves real credit here—its momentum is undeniable, and Larry Ellison remains the quintessential relentless tech visionary, pushing the company to the forefront of the Cloud and AI revolution. Heavy Investment Is Necessary for Moat Building Scaling Oracle's Cloud business comes with a hefty price tag. In FY2025, the company invested roughly $21.2 billion in capital expenditures, reflecting its aggressive buildout of GPU clusters and data centers. While these substantial investments did put some pressure on margins—non-GAAP operating margin dipped slightly to about 44%, down from 47% last year—I view this as a reasonable and strategically sound tradeoff. Crucially, Oracle remains solidly profitable and financially strong. Operating cash flow for the year reached an impressive $20.8 billion, providing the company with ample capacity to reinvest in future growth. Management made it clear on the earnings call that these upfront investments are designed to drive high-margin, recurring revenue over time, essentially laying the groundwork for long-term profitability. With around $18 billion in cash and short-term investments, Oracle appears to have the financial flexibility to fund its expansion without overburdening its balance sheet. Oracle Faces Substantial but Surmountable Risks While I'm optimistic about Oracle's growth potential, it's essential to acknowledge the risks. Management's aggressive expansion strategy hinges on flawless execution and sustained demand. If enterprise IT spending slows, if overall demand for public Cloud services weakens, or if customers shift more quickly toward AWS or Azure, Oracle's growth trajectory could face headwinds. Additionally, Oracle is making significant capital investments while also aiming to deliver strong returns to shareholders. This high-stakes approach means that any misstep or shortfall in demand could result in the company having costly, underutilized infrastructure. However, given Oracle's recent track record, management's demonstrated competence, and the sheer scale of its secured backlog, I believe these risks are manageable and well within the company's capacity to navigate. Is Oracle Stock a Good Buy? On Wall Street, Oracle has a consensus Moderate Buy rating based on 15 Buys, 12 Holds, and zero Sells. The average ORCL price target of $192.91 indicates a 3.5% downside potential over the next 12 months. This means that, despite the company's current operational and financial strengths, the market has likely priced Oracle stock too high in the short term. It's probably best to wait for a pullback before buying shares. Oracle's Ambitious Bet Has Paid Off Oracle's quarterly results strengthen my confidence in the sustained upward trajectory of Oracle's operating model. What was once a bold and uncertain Cloud transformation is now clearly delivering results. Oracle's heavy investment in OCI, its strategic focus on multi-cloud architecture and partnerships, and its sizable backlog of signed contracts all point to long-term, market-leading growth that appears both durable and well-earned.
Yahoo
4 days ago
- Business
- Yahoo
Oracle Earnings See Cloud Acceleration
Oracle beat expectations across the board in the fourth quarter of fiscal 2025. Cloud infrastructure revenue surged by 52%, and growth is forecast to accelerate to at least 70% in fiscal 2026 as the company pours capital into new data centers. Oracle's overall revenue growth should accelerate as the cloud business takes off. 10 stocks we like better than Oracle › Here's our initial take on Oracle's (NYSE: ORCL) fiscal 2025 fourth-quarter financial report. Metric Q4 FY24 Q4 FY25 Change vs. Expectations Revenue $14.3 billion $15.9 billion +11% Beat Earnings per share (adjusted) $1.63 $1.70 +4% Beat Cloud infrastructure revenue $2.0 billion $3.0 billion +52% n/a Cloud application revenue $3.3 billion $3.7 billion +12% n/a Oracle's cloud infrastructure revenue rose by 52% year over year in the fourth quarter of fiscal 2025 to $3.0 billion, and the company sees even stronger growth ahead. Oracle expects cloud infrastructure revenue to soar by more than 70% in fiscal 2026 as the company's data center investments pay off. Total cloud revenue growth, which includes applications as well, is expected to reach 40% in fiscal 2026, up from 24% in fiscal 2025. MultiCloud database revenue from third-party cloud providers more than doubled in the fourth quarter compared to the third quarter. Oracle has 23 MultiCloud datacenters operating today, with another 47 set to open over the next year. Oracle Cloud@Customer revenue grew by 104% year over year as clients opted to bring Oracle's cloud technology into their own data centers. The booming cloud business pushed total revenue up 11% year over year to $15.9 billion. Adjusted earnings per share rose by just 4% year over year, partly due to the costs associated with rapidly building out new data centers. Cloud services and license support expenses jumped 32% in the fourth quarter, quicker than overall cloud revenue growth. Share prices of Oracle were up about 7% in after-hours trading on Wednesday soon after the fourth-quarter report was released. Oracle beat analyst expectations on all fronts, and the company's upbeat forecast for accelerating cloud infrastructure growth was icing on the cake. Going into the report, Oracle stock was up about 6% year-to-date. Oracle's cloud infrastructure growth is partly being driven by the company's investments in artificial intelligence (AI) infrastructure. While Oracle's public cloud business struggled to take off in the pre-AI era, growth has accelerated dramatically as AI companies race to secure computing capacity. Oracle continues to build out new data centers at a rapid pace as demand soars, and as long as the AI boom doesn't peter out, the company's cloud infrastructure business should continue to thrive. Full earnings report Investor relations page Before you buy stock in Oracle, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Oracle wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!* Now, it's worth noting Stock Advisor's total average return is 996% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Oracle. The Motley Fool has a disclosure policy. Oracle Earnings See Cloud Acceleration was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Oracle Announces Fiscal 2025 Fourth Quarter and Fiscal Full Year Financial Results
Q4 Remaining Performance Obligations up 41% to $138 billion Q4 GAAP Earnings per Share $1.19, non-GAAP Earnings per Share $1.70 Q4 Total Revenue $15.9 billion, up 11% Q4 Cloud Revenue (IaaS plus SaaS) $6.7 billion, up 27% Q4 Cloud Infrastructure (IaaS) Revenue $3.0 billion, up 52% Q4 Cloud Application (SaaS) Revenue $3.7 billion, up 12% Q4 Fusion Cloud ERP (SaaS) Revenue $1.0 billion, up 22% Q4 NetSuite Cloud ERP (SaaS) Revenue $1.0 billion, up 18% FY 2025 Total Revenue $57.4 billion, up 8% AUSTIN, Texas, June 11, 2025 /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2025 Q4 and full-year 2025 results. Total quarterly revenues were up 11% year-over-year in USD and constant currency to $15.9 billion. Cloud services and license support revenues were up 14% in USD and constant currency to $11.7 billion. Cloud license and on-premise license revenues were up 9% in USD and up 8% in constant currency to $2.0 billion. Q4 GAAP operating income was $5.1 billion. Non-GAAP operating income was $7.0 billion, up 5% in USD and up 4% in constant currency. GAAP net income was $3.4 billion, and non-GAAP net income was $4.9 billion. GAAP earnings per share was $1.19 while non-GAAP earnings per share was $1.70. Short-term deferred revenues were $9.4 billion. Operating cash flow was $20.8 billion during fiscal year 2025, up 12% in USD. Fiscal year 2025 total revenues were up 8% in USD and up 9% in constant currency to $57.4 billion. Cloud services and license support revenues were up 12% in USD and constant currency to $44.0 billion. Cloud license and on-premise license revenues were up 2% in USD and up 3% in constant currency to $5.2 billion. Fiscal year 2025 GAAP operating income was $17.7 billion, and non-GAAP operating income was $25.0 billion. GAAP net income was $12.4 billion while non-GAAP net income was $17.3 billion. GAAP earnings per share was $4.34, while non-GAAP earnings per share was $6.03. "FY25 was a very good year—but we believe FY26 will be even better as our revenue growth rates will be dramatically higher," said Oracle CEO, Safra Catz. "We expect our total cloud growth rate—applications plus infrastructure—will increase from 24% in FY25 to over 40% in FY26. Cloud Infrastructure growth rate is expected to increase from 50% in FY25 to over 70% in FY26. And RPO is likely to grow more than 100% in FY26. Oracle is well on its way to being not only the world's largest cloud application company—but also one of the world's largest cloud infrastructure companies." "MultiCloud database revenue from Amazon, Google and Azure grew 115% from Q3 to Q4," said Oracle Chairman and CTO, Larry Ellison. "We currently have 23 MultiCloud datacenters live with 47 more being built over the next 12 months. We expect triple-digit MultiCloud revenue growth to continue in FY26. Revenue from Oracle Cloud@Customer datacenters grew 104% year-over-year. We have 29 Oracle Cloud@Customer dedicated datacenters live with another 30 being built in FY26. Overall Oracle Cloud Infrastructure consumption revenue grew 62% in Q4. We expect OCI consumption revenue to grow even faster in FY26. OCI revenue growth rates are skyrocketing—so is demand." The board of directors declared a quarterly cash dividend of $0.50 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on July 10, 2025, with a payment date of July 24, 2025. A sample list of customers which purchased Oracle Cloud services during the quarter will be available at A list of recent technical innovations and announcements is available at To learn what industry analysts have been saying about Oracle's products and services see Earnings Conference Call and WebcastOracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website at About OracleOracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at TrademarksOracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing. "Safe Harbor" Statement: Statements in this press release relating to future plans, expectations, beliefs, intentions and prospects, including projections for our growth in FY26 and our expectations of relative size among cloud applications and infrastructure companies, are "forward-looking statements" and are subject to material risks and uncertainties. Risks and uncertainties that could affect our current expectations and our actual results, include, among others: our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services, including our AI products; our management of complex cloud and hardware offerings, including the sourcing of technologies and technology components; our ability to secure datacenter capacity; significant coding, manufacturing or configuration errors in our offerings; risks associated with acquisitions; economic, political and market conditions; information technology system failures, privacy and data security concerns; cybersecurity breaches; unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on the Oracle Investor Relations website at All information set forth in this press release is current as of June 11, 2025. Oracle undertakes no duty to update any statement in light of new information or future events. ORACLE CORPORATIONQ4 FISCAL 2025 FINANCIAL RESULTS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ($ in millions, except per share data)Three Months Ended May 31,% Increase% Increase (Decrease)2025 % of 2024 % of (Decrease) in ConstantRevenues Revenues in US $ Currency (1)REVENUES Cloud services and license support $ 11,698 74 % $ 10,234 72 % 14 % 14 % Cloud license and on-premise license 2,007 13 % 1,838 13 % 9 % 8 % Hardware 850 5 % 842 6 % 1 % 0 % Services 1,348 8 % 1,373 9 % (2 %) (2 %) Total revenues 15,903 100 % 14,287 100 % 11 % 11 %OPERATING EXPENSES Cloud services and license support 3,343 21 % 2,522 18 % 33 % 32 % Hardware 252 2 % 241 2 % 4 % 4 % Services 1,145 7 % 1,160 8 % (1 %) (2 %) Sales and marketing 2,306 15 % 2,114 15 % 9 % 9 % Research and development 2,654 17 % 2,226 15 % 19 % 20 % General and administrative 467 3 % 402 3 % 16 % 16 % Amortization of intangible assets 544 3 % 743 5 % (27 %) (27 %) Acquisition related and other 4 0 % 101 1 % (96 %) (97 %) Restructuring 79 0 % 92 0 % (15 %) (16 %) Total operating expenses 10,794 68 % 9,601 67 % 12 % 12 %OPERATING INCOME 5,109 32 % 4,686 33 % 9 % 7 % Interest expense (978) (6 %) (878) (6 %) 11 % 11 % Non-operating income (expenses), net 20 0 % (26) 0 % * * INCOME BEFORE INCOME TAXES 4,151 26 % 3,782 27 % 10 % 8 % Provision for income taxes 724 4 % 639 5 % 13 % 11 %NET INCOME $ 3,427 22 % $ 3,143 22 % 9 % 7 % EARNINGS PER SHARE: Basic $ 1.22$ 1.14Diluted $ 1.19$ 1.11 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 2,8052,753Diluted 2,8712,834(1) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2024, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the three months ended May 31, 2025 compared with the corresponding prior year period increased our operating income by 2 percentage points.* Not meaningful ORACLE CORPORATIONQ4 FISCAL 2025 FINANCIAL RESULTS RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) ($ in millions, except per share data) Three Months Ended May 31,% Increase (Decrease)in US $ % Increase (Decrease)in Constant Currency (2) 20252025 20242024GAAP Non-GAAP GAAP Non-GAAP REVENUES$ 15,903$ -$ 15,903 $ 14,287$ -$ 14,28711 % 11 % 11 % 11 % TOTAL OPERATING EXPENSES$ 10,794$ (1,926)$ 8,868 $ 9,601$ (1,983)$ 7,61812 % 16 % 12 % 16 % Stock-based compensation (3)1,299(1,299)- 1,047(1,047)-24 % * 24 % * Amortization of intangible assets (4)544(544)- 743(743)-(27 %) * (27 %) * Acquisition related and other4(4)- 101(101)-(96 %) * (97 %) * Restructuring79(79)- 92(92)-(15 %) * (16 %) *OPERATING INCOME$ 5,109$ 1,926$ 7,035 $ 4,686$ 1,983$ 6,6699 % 5 % 7 % 4 %OPERATING MARGIN %32 %44 % 33 %47 %(67) bp. (244) bp. (96) bp. (266) TAX EFFECTS (5)$ 724$ 472$ 1,196 $ 639$ 519$ 1,15813 % 3 % 11 % 2 %NET INCOME$ 3,427$ 1,454$ 4,881 $ 3,143$ 1,464$ 4,6079 % 6 % 7 % 5 %DILUTED EARNINGS PER SHARE$ 1.19$ 1.70 $ 1.11$ 1.638 % 5 % 6 % 3 %DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING2,871-2,871 2,834-2,8341 % 1 % 1 % 1 %(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A. (2) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2024, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. (3) Stock-based compensation was included in the following GAAP operating expense categories:Three Months Ended Three Months EndedMay 31, 2025 May 31, Cloud services and license support$ 150$ (150)$ - $ 140$ (140)$ - Hardware7(7)- 6(6)- Services52(52)- 44(44)- Sales and marketing200(200)- 178(178)- Research and development737(737)- 583(583)- General and administrative153(153)- 96(96)- Total stock-based compensation$ 1,299$ (1,299)$ - $ 1,047$ (1,047)$ -(4) Estimated future annual amortization expense related to intangible assets as of May 31, 2025 was as follows: Fiscal 2026$ 1,639 Fiscal 2027672 Fiscal 2028635 Fiscal 2029561 Fiscal 2030522 Thereafter558 Total intangible assets, net$ 4,587 (5) Income tax effects were calculated reflecting an effective GAAP tax rate of 17.5% and 16.9% in the fourth quarter of fiscal 2025 and 2024, respectively, and an effective non-GAAP tax rate of 19.7% and 20.1% in the fourth quarter of fiscal 2025 and 2024, respectively. The difference in our GAAP and non-GAAP tax rates in each of the fourth quarters of fiscal 2025 and 2024 was primarily due to the net tax effects related to stock-based compensation expense; acquisition related and other items, including the tax effects on amortization of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure.* Not meaningful ORACLE CORPORATIONFISCAL 2025 YEAR TO DATE FINANCIAL RESULTS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ($ in millions, except per share data)Year Ended May 31,% Increase% Increase (Decrease)2025 % of 2024 % of (Decrease) in ConstantRevenues Revenues in US $ Currency (1)REVENUES Cloud services and license support $ 44,029 77 % $ 39,383 74 % 12 % 12 % Cloud license and on-premise license 5,201 9 % 5,081 10 % 2 % 3 % Hardware 2,936 5 % 3,066 6 % (4 %) (4 %) Services 5,233 9 % 5,431 10 % (4 %) (3 %) Total revenues 57,399 100 % 52,961 100 % 8 % 9 %OPERATING EXPENSES Cloud services and license support 11,569 20 % 9,427 18 % 23 % 23 % Hardware 782 1 % 891 2 % (12 %) (11 %) Services 4,576 8 % 4,825 9 % (5 %) (5 %) Sales and marketing 8,651 15 % 8,274 15 % 5 % 5 % Research and development 9,860 17 % 8,915 17 % 11 % 11 % General and administrative 1,602 3 % 1,548 3 % 3 % 4 % Amortization of intangible assets 2,307 4 % 3,010 6 % (23 %) (23 %) Acquisition related and other 75 0 % 314 0 % (76 %) (76 %) Restructuring 299 1 % 404 1 % (26 %) (26 %) Total operating expenses 39,721 69 % 37,608 71 % 6 % 6 %OPERATING INCOME 17,678 31 % 15,353 29 % 15 % 16 % Interest expense (3,578) (6 %) (3,514) (7 %) 2 % 2 % Non-operating income (expenses), net 60 0 % (98) 0 % * * INCOME BEFORE INCOME TAXES 14,160 25 % 11,741 22 % 21 % 21 % Provision for income taxes 1,717 3 % 1,274 2 % 35 % 36 %NET INCOME $ 12,443 22 % $ 10,467 20 % 19 % 20 % EARNINGS PER SHARE: Basic $ 4.46$ 3.82Diluted $ 4.34$ 3.71 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 2,7892,744Diluted 2,8662,823(1) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2024, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the year ended May 31, 2025 compared with the corresponding prior year period decreased each of our total revenues and operating income by 1 percentage point.* Not meaningful ORACLE CORPORATIONFISCAL 2025 YEAR TO DATE FINANCIAL RESULTS RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) ($ in millions, except per share data) Year Ended May 31,% Increase (Decrease)in US $ % Increase(Decrease) in ConstantCurrency (2) 20252025 20242024GAAP Non-GAAP GAAP Non-GAAP REVENUES$ 57,399$ -$ 57,399 $ 52,961$ -$ 52,9618 % 8 % 9 % 9 % TOTAL OPERATING EXPENSES$ 39,721$ (7,355)$ 32,366 $ 37,608$ (7,702)$ 29,9066 % 8 % 6 % 9 % Stock-based compensation (3)4,674(4,674)- 3,974(3,974)-18 % * 18 % * Amortization of intangible assets (4)2,307(2,307)- 3,010(3,010)-(23 %) * (23 %) * Acquisition related and other75(75)- 314(314)-(76 %) * (76 %) * Restructuring299(299)- 404(404)-(26 %) * (26 %) *OPERATING INCOME$ 17,678$ 7,355$ 25,033 $ 15,353$ 7,702$ 23,05515 % 9 % 16 % 9 %OPERATING MARGIN %31 %44 % 29 %44 %181 bp. 8 bp. 182 bp. 4 TAX EFFECTS (5)$ 1,717$ 2,514$ 4,231 $ 1,274$ 2,459$ 3,73335 % 13 % 36 % 14 %NET INCOME $ 12,443$ 4,841$ 17,284 $ 10,467$ 5,243$ 15,71019 % 10 % 20 % 11 %DILUTED EARNINGS PER SHARE$ 4.34$ 6.03 $ 3.71$ 5.5617 % 8 % 18 % 9 %DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING2,866-2,866 2,823-2,8232 % 2 % 2 % 2 %(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A. (2) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2024, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. (3) Stock-based compensation was included in the following GAAP operating expense categories:Year Ended Year EndedMay 31, 2025 May 31, Cloud services and license support$ 609$ (609)$ - $ 525$ (525)$ - Hardware29(29)- 23(23)- Services202(202)- 167(167)- Sales and marketing757(757)- 667(667)- Research and development2,638(2,638)- 2,225(2,225)- General and administrative439(439)- 367(367)- Total stock-based compensation$ 4,674$ (4,674)$ - $ 3,974$ (3,974)$ -(4) Estimated future annual amortization expense related to intangible assets as of May 31, 2025 was as follows: Fiscal 2026$ 1,639 Fiscal 2027672 Fiscal 2028635 Fiscal 2029561 Fiscal 2030522 Thereafter558 Total intangible assets, net$ 4,587 (5) Income tax effects were calculated reflecting an effective GAAP tax rate of 12.1% and 10.9% in fiscal 2025 and 2024, respectively, and an effective non-GAAP tax rate of 19.7% and 19.2% in fiscal 2025 and 2024, respectively. The difference in our GAAP and non-GAAP tax rates in each of fiscal 2025 and 2024 was primarily due to the net tax effects related to stock-based compensation expense; acquisition related and other items, including the tax effects on amortization of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure.* Not meaningful ORACLE CORPORATIONFISCAL 2025 FINANCIAL RESULTS CONDENSED CONSOLIDATED BALANCE SHEETS ($ in millions) May 31, May 31,2025 2024 ASSETSCurrent Assets:Cash and cash equivalents $ 10,786$ 10,454 Marketable securities 417207 Trade receivables, net 8,5587,874 Prepaid expenses and other current assets 4,8184,019Total Current Assets 24,57922,554Non-Current Assets: Property, plant and equipment, net 43,52221,536 Intangible assets, net 4,5876,890 Goodwill, net 62,20762,230 Deferred tax assets 11,87712,273 Other non-current assets 21,58915,493Total Non-Current Assets 143,782118,422TOTAL ASSETS $ 168,361$ 140,976LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities:Notes payable and other borrowings, current $ 7,271$ 10,605 Accounts payable 5,1132,357 Accrued compensation and related benefits 2,2431,916 Deferred revenues 9,3879,313 Other current liabilities 8,6297,353Total Current Liabilities 32,64331,544Non-Current Liabilities:Notes payable and other borrowings, non-current 85,29776,264 Income taxes payable 10,26910,817 Operating lease liabilities 11,5366,255 Other non-current liabilities 7,6476,857Total Non-Current Liabilities 114,749100,193Stockholders' Equity 20,9699,239TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 168,361$ 140,976 ORACLE CORPORATION FISCAL 2025 FINANCIAL RESULTS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in millions) Year Ended May 31, 2025 2024 Cash Flows From Operating Activities: Net income $ 12,443$ 10,467Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 3,8673,129Amortization of intangible assets 2,3073,010Deferred income taxes (1,637)(2,139)Stock-based compensation 4,6743,974Other, net 667720Changes in operating assets and liabilities: Increase in trade receivables, net (653)(965)Decrease in prepaid expenses and other assets 266542Decrease in accounts payable and other liabilities (608)(594)Decrease in income taxes payable (659)(127)Increase in deferred revenues 154656Net cash provided by operating activities 20,82118,673Cash Flows From Investing Activities: Purchases of marketable securities and other investments (1,272)(1,003)Proceeds from sales and maturities of marketable securities and other investments 776572Acquisitions, net of cash acquired -(63)Capital expenditures (21,215)(6,866)Net cash used for investing activities (21,711)(7,360)Cash Flows From Financing Activities: Payments for repurchases of common stock (600)(1,202)Proceeds from issuances of common stock 653742Shares repurchased for tax withholdings upon vesting of restricted stock-based awards (900)(2,040)Payments of dividends to stockholders (4,743)(4,391)Proceeds from issuances of (repayments of) commercial paper, net 1,889(167)Proceeds from issuances of senior notes and term loan credit agreements, net of issuance costs 19,548-Repayments of senior notes and term loan credit agreements (15,841)(3,500)Other financing activities, net 1,0924Net cash provided by (used for) financing activities 1,098(10,554)Effect of exchange rate changes on cash and cash equivalents 124(70)Net increase in cash and cash equivalents 332689Cash and cash equivalents at beginning of period 10,4549,765Cash and cash equivalents at end of period $ 10,786$ 10,454 ORACLE CORPORATION FISCAL 2025 FINANCIAL RESULTS FREE CASH FLOW - TRAILING 4-QUARTERS (1) ($ in millions) Fiscal 2024 Fiscal 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 GAAP Operating Cash Flow $ 17,745 $ 17,039 $ 18,239 $ 18,673 $ 19,126 $ 20,287 $ 20,745 $ 20,821 Capital Expenditures (8,290) (6,935) (5,981) (6,866) (7,855) (10,745) (14,933) (21,215) Free Cash Flow $ 9,455 $ 10,104 $ 12,258 $ 11,807 $ 11,271 $ 9,542 $ 5,812 $ (394) Operating Cash Flow % Growth over prior year 68 % 13 % 18 % 9 % 8 % 19 % 14 % 12 % Free Cash Flow % Growth over prior year 76 % 20 % 68 % 39 % 19 % (6 %) (53 %) (103 %)GAAP Net Income $ 9,375 $ 10,137 $ 10,642 $ 10,467 $ 10,976 $ 11,624 $ 12,160 $ 12,443 Operating Cash Flow as a % of Net Income 189 % 168 % 171 % 178 % 174 % 175 % 171 % 167 % Free Cash Flow as a % of Net Income 101 % 100 % 115 % 113 % 103 % 82 % 48 % (3) %(1) To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows on a trailing 4-quarter basis to analyze cash flow generated from operations. We believe free cash flow is also useful as one of the bases for comparing our performance with our competitors. The presentation of non-GAAP free cash flow is not meant to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from operating activities as a measure of liquidity. ORACLE CORPORATION FISCAL 2025 FINANCIAL RESULTS SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1) ($ in millions) Fiscal 2024 Fiscal 2025 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL REVENUES BY OFFERINGS Cloud services $ 4,635 $ 4,775 $ 5,054 $ 5,311 $ 19,774$ 5,623 $ 5,937 $ 6,210 $ 6,737 $ 24,506 License support 4,912 4,864 4,909 4,923 19,6094,896 4,869 4,797 4,961 19,523 Cloud services and license support 9,547 9,639 9,963 10,234 39,38310,519 10,806 11,007 11,698 44,029 Cloud license and on-premise license 809 1,178 1,256 1,838 5,081870 1,195 1,129 2,007 5,201 Hardware 714 756 754 842 3,066655 728 703 850 2,936 Services 1,383 1,368 1,307 1,373 5,4311,263 1,330 1,291 1,348 5,233 Total revenues $ 12,453 $ 12,941 $ 13,280 $ 14,287 $ 52,961$ 13,307 $ 14,059 $ 14,130 $ 15,903 $ 57,399AS REPORTED REVENUE GROWTH RATES Cloud services 30 % 25 % 25 % 20 % 25 %21 % 24 % 23 % 27 % 24 % License support 2 % 2 % 1 % 0 % 1 %0 % 0 % (2 %) 1 % 0 % Cloud services and license support 13 % 12 % 12 % 9 % 12 %10 % 12 % 10 % 14 % 12 % Cloud license and on-premise license (10 %) (18 %) (3 %) (15 %) (12 %)7 % 1 % (10 %) 9 % 2 % Hardware (6 %) (11 %) (7 %) (1 %) (6 %)(8 %) (4 %) (7 %) 1 % (4 %) Services 2 % (2 %) (5 %) (6 %) (3 %)(9 %) (3 %) (1 %) (2 %) (4 %) Total revenues 9 % 5 % 7 % 3 % 6 %7 % 9 % 6 % 11 % 8 %CONSTANT CURRENCY REVENUE GROWTH RATES (2)Cloud services 29 % 24 % 24 % 20 % 24 %22 % 24 % 25 % 27 % 24 % License support 0 % 0 % 1 % 1 % 0 %0 % 0 % 0 % 0 % 0 % Cloud services and license support 12 % 11 % 11 % 10 % 11 %11 % 12 % 12 % 14 % 12 % Cloud license and on-premise license (11 %) (19 %) (3 %) (14 %) (12 %)8 % 3 % (8 %) 8 % 3 % Hardware (8 %) (12 %) (7 %) 0 % (7 %)(8 %) (3 %) (5 %) 0 % (4 %) Services 1 % (3 %) (5 %) (6 %) (3 %)(8 %) (3 %) 1 % (2 %) (3 %) Total revenues 8 % 4 % 7 % 4 % 6 %8 % 9 % 8 % 11 % 9 %CLOUD SERVICES AND LICENSE SUPPORT REVENUES BY ECOSYSTEM Applications cloud services and license support $ 4,471 $ 4,474 $ 4,584 $ 4,642 $ 18,172$ 4,769 $ 4,784 $ 4,811 $ 5,019 $ 19,383 Infrastructure cloud services and license support 5,076 5,165 5,379 5,592 21,2115,750 6,022 6,196 6,679 24,646 Total cloud services and license support revenues $ 9,547 $ 9,639 $ 9,963 $ 10,234 $ 39,383$ 10,519 $ 10,806 $ 11,007 $ 11,698 $ 44,029AS REPORTED REVENUE GROWTH RATES Applications cloud services and license support 11 % 10 % 10 % 6 % 9 %7 % 7 % 5 % 8 % 7 % Infrastructure cloud services and license support 15 % 14 % 13 % 12 % 14 %13 % 17 % 15 % 19 % 16 % Total cloud services and license support revenues13 % 12 % 12 % 9 % 12 %10 % 12 % 10 % 14 % 12 %CONSTANT CURRENCY REVENUE GROWTH RATES (2) Applications cloud services and license support 11 % 9 % 10 % 6 % 9 %7 % 7 % 6 % 8 % 7 % Infrastructure cloud services and license support 14 % 12 % 13 % 13 % 13 %14 % 17 % 18 % 19 % 17 % Total cloud services and license support revenues12 % 11 % 11 % 10 % 11 %11 % 12 % 12 % 14 % 12 %GEOGRAPHIC REVENUES Americas $ 7,841 $ 8,067 $ 8,270 $ 8,945 $ 33,122$ 8,372 $ 8,933 $ 9,000 $ 10,034 $ 36,339 Europe/Middle East/Africa 3,005 3,170 3,316 3,539 13,0303,228 3,381 3,421 3,996 14,025 Asia Pacific 1,607 1,704 1,694 1,803 6,8091,707 1,745 1,709 1,873 7,035 Total revenues$ 12,453 $ 12,941 $ 13,280 $ 14,287 $ 52,961$ 13,307 $ 14,059 $ 14,130 $ 15,903 $ 57,399 (1) The sum of the quarterly information presented may vary from the year-to-date information presented due to rounding.(2) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2024 and 2023 for the fiscal 2025 and fiscal 2024 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods. APPENDIX A ORACLE CORPORATIONQ4 FISCAL 2025 FINANCIAL RESULTSEXPLANATION OF NON-GAAP MEASURES To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects: Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses, income tax effects and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods. Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating expenses, income tax effects and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods. Acquisition related and other expenses; and restructuring expenses: We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses from our non-GAAP operating expenses, income tax effects and net income measures. We incurred expenses in connection with our acquisitions and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition related and other expenses consisted of personnel related costs for transitional and certain other employees, certain business combination adjustments including certain adjustments after the measurement period has ended, and certain other operating items, net. Restructuring expenses consisted of employee severance and other exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses. Although acquisition related and other expenses and restructuring expenses may diminish over time with respect to past acquisitions and/or strategic initiatives, we generally will incur certain of these expenses in connection with any future acquisitions and/or strategic initiatives. View original content: SOURCE Oracle
