Oracle 2025 Q4 Earnings Beats Expectations as Net Income Grows 9%
Daily EarningsWednesday, Jun 11, 2025 11:10 pm ET
36min readOracle (ORCL), ranking 19th by market capitalization, reported its fiscal 2025 Q4 earnings on Jun 11th, 2025. Oracle's performance exceeded expectations, with revenue reaching $15.9 billion, surpassing analyst estimates of $15.58 billion. The company also reported adjusted earnings per share of $1.70, beating the expected $1.64. Oracle provided an optimistic outlook for fiscal 2026, projecting that total cloud growth rates will exceed 40%, driven by Cloud Infrastructure growth surpassing 70%. Analysts expect revenue growth of 12% to 14% for the next quarter, in line with Oracle’s guidance.
Revenue
Oracle's revenue for the quarter climbed 11.3% year-over-year to $15.90 billion, up from $14.29 billion in 2024 Q4. The cloud and on-premise software segment generated $13.71 billion. Within this segment, cloud services and license support accounted for $11.70 billion, while cloud license and on-premise license brought in $2.01 billion. The hardware segment contributed $850 million, and services added $1.35 billion to the total revenue.
Earnings/Net Income
Oracle's earnings per share rose by 7.0% to $1.22 in 2025 Q4, up from $1.14 in the previous year, reflecting continued growth. The company reported a net income of $3.43 billion, marking a 9.0% increase from $3.14 billion in 2024 Q4. This demonstrates Oracle's ongoing profitability and operational resilience. The EPS and net income results are positive, highlighting Oracle's financial strength.
Price Action
Post-Earnings Price Action Review
The strategy of investing in Oracle (ORCL) shares following a quarter-over-quarter revenue increase has proven highly effective over the past three years. Purchasing shares on the earnings release date and holding them for 30 days yielded a remarkable 187.07% return, substantially outpacing the benchmark with a 128.98% excess return. Although the strategy experienced a maximum drawdown of -37.09%, it maintained a Sharpe ratio of 1.18, indicating moderate returns with some degree of risk. The compound annual growth rate (CAGR) of 42.52% and volatility of 36.04% underscore the strategy’s ability to manage growth effectively while maintaining a reasonable level of volatility. This performance highlights the potential benefits of this investment approach in capturing Oracle's growth momentum.
CEO Commentary
"FY25 was a very good year—but we believe FY26 will be even better as our revenue growth rates will be dramatically higher," said Oracle CEO, Safra Catz. Cloud growth rates are expected to increase significantly, with total cloud growth projected to rise from 24% in FY25 to over 40% in FY26. Cloud Infrastructure growth is anticipated to jump from 50% to over 70%. Catz emphasized that Oracle is on track to become one of the world’s largest cloud application and infrastructure companies.
Guidance
Oracle expects total cloud growth rates to exceed 40% in FY26, with Cloud Infrastructure growth anticipated to surpass 70%. Remaining Performance Obligations (RPO) are projected to grow more than 100% in FY26. Additionally, the company anticipates continued triple-digit growth in MultiCloud database revenue, alongside significant increases in OCI consumption revenue.
Additional News
In recent developments, Oracle has announced a strategic partnership with Cleveland Clinic and G42, a UAE-based AI company, to develop an AI delivery platform for healthcare. Additionally, Oracle has made significant cloud and consulting commitments with IBM, enhancing its collaborative efforts in the technology sector. In notable M&A activity, SoftBank disclosed plans to acquire Ampere, a chip design startup backed by Oracle, for $6.5 billion. This acquisition is expected to bolster Oracle’s position in the semiconductor industry. Furthermore, Oracle declared a quarterly dividend of $0.50 per share, payable on July 24, 2025, reinforcing its commitment to returning value to shareholders.
Revenue
Oracle's revenue for the quarter climbed 11.3% year-over-year to $15.90 billion, up from $14.29 billion in 2024 Q4. The cloud and on-premise software segment generated $13.71 billion. Within this segment, cloud services and license support accounted for $11.70 billion, while cloud license and on-premise license brought in $2.01 billion. The hardware segment contributed $850 million, and services added $1.35 billion to the total revenue.
Earnings/Net Income
Oracle's earnings per share rose by 7.0% to $1.22 in 2025 Q4, up from $1.14 in the previous year, reflecting continued growth. The company reported a net income of $3.43 billion, marking a 9.0% increase from $3.14 billion in 2024 Q4. This demonstrates Oracle's ongoing profitability and operational resilience. The EPS and net income results are positive, highlighting Oracle's financial strength.
Price Action
Post-Earnings Price Action Review
The strategy of investing in Oracle (ORCL) shares following a quarter-over-quarter revenue increase has proven highly effective over the past three years. Purchasing shares on the earnings release date and holding them for 30 days yielded a remarkable 187.07% return, substantially outpacing the benchmark with a 128.98% excess return. Although the strategy experienced a maximum drawdown of -37.09%, it maintained a Sharpe ratio of 1.18, indicating moderate returns with some degree of risk. The compound annual growth rate (CAGR) of 42.52% and volatility of 36.04% underscore the strategy’s ability to manage growth effectively while maintaining a reasonable level of volatility. This performance highlights the potential benefits of this investment approach in capturing Oracle's growth momentum.
CEO Commentary
"FY25 was a very good year—but we believe FY26 will be even better as our revenue growth rates will be dramatically higher," said Oracle CEO, Safra Catz. Cloud growth rates are expected to increase significantly, with total cloud growth projected to rise from 24% in FY25 to over 40% in FY26. Cloud Infrastructure growth is anticipated to jump from 50% to over 70%. Catz emphasized that Oracle is on track to become one of the world’s largest cloud application and infrastructure companies.
Guidance
Oracle expects total cloud growth rates to exceed 40% in FY26, with Cloud Infrastructure growth anticipated to surpass 70%. Remaining Performance Obligations (RPO) are projected to grow more than 100% in FY26. Additionally, the company anticipates continued triple-digit growth in MultiCloud database revenue, alongside significant increases in OCI consumption revenue.
Additional News
In recent developments, Oracle has announced a strategic partnership with Cleveland Clinic and G42, a UAE-based AI company, to develop an AI delivery platform for healthcare. Additionally, Oracle has made significant cloud and consulting commitments with IBM, enhancing its collaborative efforts in the technology sector. In notable M&A activity, SoftBank disclosed plans to acquire Ampere, a chip design startup backed by Oracle, for $6.5 billion. This acquisition is expected to bolster Oracle’s position in the semiconductor industry. Furthermore, Oracle declared a quarterly dividend of $0.50 per share, payable on July 24, 2025, reinforcing its commitment to returning value to shareholders.
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