Oracle Q1 2025 Earnings Report
Key Takeaways
Oracle announced its Q1 Fiscal Year 2025 results, revealing a 7% increase in total revenue to $13.3 billion. Cloud revenue saw a 21% increase, reaching $5.6 billion. The company's GAAP earnings per share rose by 20% to $1.03, while non-GAAP earnings per share increased by 17% to $1.39. Remaining Performance Obligations (RPO) increased by 53% to $99 billion.
GAAP earnings per share increased by 20% to $1.03, and non-GAAP earnings per share increased by 17% to $1.39.
Total revenue reached $13.3 billion, up 7% in USD and 8% in constant currency.
Total Remaining Performance Obligations (RPO) increased by 53% to $99 billion.
Cloud revenue (IaaS plus SaaS) increased by 21% to $5.6 billion.
Oracle
Oracle
Oracle Revenue by Segment
Oracle Revenue by Geographic Location
Forward Guidance
Oracle anticipates continued revenue growth throughout FY25, driven by a strong contract backlog and multi-cloud agreements.
Positive Outlook
- Strong contract backlog expected to increase revenue growth throughout FY25.
- MultiCloud agreement with AWS will provide customers easy access to the Oracle database within AWS cloud datacenters.
- Oracle has 162 cloud datacenters in operation and under construction worldwide.
- 42 additional cloud GPU contracts were signed in Q1 for a total of $3 billion.
- Database business growth rate is increasing as a result of MultiCloud agreements with Microsoft and Google.
Challenges Ahead
- Risks associated with the development and integration of new products and services, including AI products.
- Challenges in managing complex cloud and hardware offerings, including sourcing technologies and components.
- Potential difficulties in securing data center capacity.
- Risk of coding, manufacturing, or configuration errors in Oracle's offerings.
- Exposure to economic, political, and market conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income