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Feb 28, 2025
Oracle Q3 2025 Earnings Report
Oracle reported solid financial performance in Q3 FY25, with revenue and earnings growth driven by cloud services.
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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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