Can ORCL's Q4 2025 forecasted earnings meet expectations?
4/9/2025 08:13pm
**Oracle's Q4 2025 forecasted earnings are likely to meet expectations**, considering the following points:
1. **Consistent Growth Trajectory**: Oracle has shown a consistent growth trajectory in its financial reports, with Q1, Q2, and Q3 of FY2025 reporting periods demonstrating robust performance.
2. **Positive Market Sentiment**: Despite facing challenges such as component delays and currency headwinds, Oracle's stock remains strong, with a 63% increase in backlog and robust cloud revenue growth. The company's strategic back-office SaaS applications now have an annualized revenue of $8.6 billion, reflecting an 8% growth.
3. **AI and Cloud Growth**: The company's AI and cloud sectors are experiencing significant growth, with a 92% rise in Database MultiCloud revenue and a 244% surge in GPU consumption for AI training. Oracle's cloud infrastructure revenue grew by 51% in Q3, driven by record-level AI demand.
4. **Dividend Increase**: Oracle's recent dividend increase of 25% to $0.50 per share reflects the company's commitment to returning value to shareholders.
5. **Analyst Expectations**: Analysts have set high expectations for Oracle’s Q4 earnings, with an estimated EPS of $1.3 for the period. This is in line with the company's historical performance and market sentiment.
In conclusion, while Oracle may face some challenges, such as component delays and currency headwinds, its strong growth in AI and cloud services, consistent financial performance, and positive market sentiment suggest that its Q4 2025 forecasted earnings are likely to meet expectations.