How did Oracle's revenue and expenses shift in Q3 2025 compared to previous quarters?

Oracle's revenue and expenses exhibited distinct shifts in Q3 2025 compared to previous quarters, reflecting strategic focus areas and business performance trends:

1. Revenue Shifts:
   • Growth in Cloud Services: Oracle's cloud revenue experienced significant growth, with Cloud Infrastructure (IaaS) revenue increasing by 49% and Cloud Application (SaaS) revenue growing by 9% year-over-year. This indicates a strong adoption of Oracle's cloud offerings.
   • Total Revenue Increase: The total revenue for Q3 2025 was $14.13 billion, marking a 6% increase year-over-year in USD and an 8% increase in constant currency. This growth is bolstered by robust performance in cloud services and software license support.
   • Remaining Performance Obligations: The company's remaining performance obligations surged by 62% year-over-year in USD and 63% in constant currency, reaching $130 billion. This substantial increase suggests a robust backlog of future revenue potential.

ORCL Total Revenue YoY, Total Revenue

2. Expense Considerations:
   • No specific details about Oracle's expenses in Q3 2025 were provided. However, the focus on revenue growth and strategic investments in cloud services and AI suggest that expenses may have increased to support these growth initiatives.
3. Profitability Metrics:
   • Oracle reported a GAAP operating income of $4.4 billion and a non-GAAP operating income of $6.2 billion, indicating healthy profitability margins. The GAAP operating margin was 31%, and the non-GAAP operating margin was 44%, reflecting efficient cost management alongside revenue growth.
   • Earnings per share (EPS) increased by 20% to $1.02 with GAAP earnings. Non-GAAP EPS rose by 4% to $1.47, showing consistent profitability improvements.
4. Dividend and Cash Flow: Oracle increased its quarterly dividend by 25% to $0.50 per share, signaling confidence in its financial health and commitment to shareholder returns. Additionally, the company reported an operating cash flow of $20.7 billion over the last twelve months, underscoring its financial stability.

In conclusion, Oracle's Q3 2025 financials reflect a company focused on strategic growth areas, particularly in cloud services, which has led to robust revenue increases and improved profitability. The absence of specific expense data suggests that these gains are being reinvested in the business for further expansion and innovation.