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Oracle
🇺🇸 NYSE:ORCL
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Nov 30, 2024

Oracle Q2 2025 Earnings Report

Oracle's fiscal 2025 second quarter financial results were announced, with notable growth in cloud revenue and earnings per share.

Key Takeaways

Oracle announced its Q2 fiscal year 2025 results, reporting a 9% increase in total revenue to $14.1 billion. Cloud revenue (IaaS plus SaaS) grew by 24% to $5.9 billion, and GAAP earnings per share increased by 24% to $1.10. The company's remaining performance obligations (RPO) rose by 50% to $97 billion.

GAAP earnings per share increased by 24% to $1.10, while non-GAAP earnings per share rose by 10% to $1.47.

Total revenue reached $14.1 billion, a 9% increase year-over-year.

Total remaining performance obligations increased by 49% in USD and 50% in constant currency, reaching $97 billion.

Cloud revenue (IaaS plus SaaS) grew by 24% to $5.9 billion.

Total Revenue
$14.1B
Previous year: $12.9B
+8.6%
EPS
$1.47
Previous year: $1.34
+9.7%
Gross Profit
$9.97B
Previous year: $9.2B
+8.4%
Cash and Equivalents
$11.3B
Previous year: $8.69B
+30.2%
Free Cash Flow
-$2.67B
Previous year: -$937M
+184.5%
Total Assets
$148B
Previous year: $134B
+10.5%

Oracle

Oracle

Oracle Revenue by Segment

Oracle Revenue by Geographic Location

Forward Guidance

Oracle anticipates continued growth, particularly in its cloud infrastructure business, driven by strong AI demand. The company expects its cloud revenue to exceed $25 billion this fiscal year.

Positive Outlook

  • Strong AI demand driving Oracle Cloud Infrastructure revenue growth.
  • Agreement with Meta to use Oracle’s AI Cloud Infrastructure and collaborate on AI Agents.
  • Oracle Cloud Infrastructure is faster and less expensive than other clouds for training AI models.
  • Remaining performance obligation (RPO) up 50% to $97 billion, indicating future growth.
  • Oracle's AI Agents automate various tasks, improving scientific discovery, economic development, and corporate growth.

Challenges Ahead

  • Statements in the press release relating to future plans are forward-looking and subject to risks and uncertainties.
  • Risks include the ability to develop new products and services, manage complex cloud and hardware offerings, and secure data center capacity.
  • Economic, political, and market conditions could affect actual results.
  • Information technology system failures and cybersecurity breaches pose risks.
  • Unfavorable legal proceedings and changing laws and regulations could impact the company.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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