Oracle Q3 2025 Earnings Report
Key Takeaways
Oracle's Q3 FY25 revenue reached $14.1 billion, marking a 6% year-over-year increase. GAAP EPS rose 20% to $1.02, while non-GAAP EPS increased 4% to $1.47. Cloud services and license support revenue grew 10%, with strong demand for cloud applications and infrastructure solutions.
Total revenue grew 6% year-over-year to $14.1 billion.
GAAP EPS increased 20% to $1.02, while non-GAAP EPS rose 4% to $1.47.
Cloud revenue (IaaS + SaaS) reached $6.2 billion, up 23%.
Operating income increased to $4.4 billion GAAP and $6.2 billion non-GAAP.
Oracle
Oracle
Oracle Revenue by Segment
Oracle Revenue by Geographic Location
Forward Guidance
Oracle expects continued revenue growth, driven by strong cloud demand and increasing AI-related opportunities. The company projects a 15% revenue increase in FY26, supported by a $130 billion backlog and expanding data center capacity.
Positive Outlook
- Revenue projected to grow by 15% in the next fiscal year.
- Expansion of data center capacity on schedule for completion this year.
- Strong AI-related demand, with GPU consumption for AI training up 244%.
- Increasing partnerships with top tech companies like OpenAI, NVIDIA, and AMD.
- Oracle AI Data Platform to drive enterprise adoption of AI-powered solutions.
Challenges Ahead
- Decline in cloud license and on-premise license revenue (-10%).
- Hardware revenue declined 7% year-over-year.
- Increased interest expenses affecting profitability.
- Ongoing currency fluctuations impacting reported revenue.
- Competitive pressures in cloud infrastructure market.
Revenue & Expenses
Visualization of income flow from segment revenue to net income