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Oracle Q1 Earnings: Revenue Misses Estimates, EPS in Line with Consensus
ByAinvest
Tuesday, Sep 9, 2025 6:37 pm ET1min read
Oracle (ORCL) reported Q1 earnings of $1.47 per share, in line with the Zacks Consensus Estimate. The software maker's revenue of $14.93 billion missed the estimate by 0.59%. The stock has added 43.1% this year, outperforming the S&P 500's 10.4% gain. The Zacks Rank is #3 (Hold), indicating the shares are expected to perform in line with the market in the near future.
Oracle Corporation (NYSE: ORCL) reported its fiscal year 2026 first quarter financial results on September 9, 2025. The software giant's earnings per share (EPS) of $1.47 were in line with the Zacks Consensus Estimate, while total revenue of $14.93 billion missed the estimate by 0.59% [1].Key Highlights:
- Revenue: Total revenue grew by 12% in USD and 11% in constant currency, driven primarily by cloud services. Cloud revenue increased by 28% in USD and 27% in constant currency to $7.2 billion. This growth was supported by a 55% increase in Infrastructure as a Service (IaaS) revenue and a 11% increase in Software as a Service (SaaS) revenue [1].
- Earnings: Non-GAAP EPS of $1.47 was up 6% year-over-year in USD. GAAP EPS was $1.01, down 2% compared to the same period last year [1].
- Performance Obligations: Remaining Performance Obligations (RPO) stood at $455 billion, up 359% year-over-year in both USD and constant currency. This significant increase was attributed to the signing of four multi-billion-dollar contracts with three different customers in Q1 [1].
- Cloud Infrastructure: Oracle expects Cloud Infrastructure revenue to grow 77% to $18 billion this fiscal year, and then increase to $32 billion, $73 billion, $114 billion, and $144 billion over the subsequent four years [1].
Market Performance:
The stock has added 43.1% this year, outperforming the S&P 500's 10.4% gain. The Zacks Rank is #3 (Hold), indicating the shares are expected to perform in line with the market in the near future [1].
Outlook:
Oracle's strong Q1 results underscore the company's continued growth trajectory, particularly in the cloud services segment. The company expects significant revenue growth in the coming years, driven by its expanding cloud infrastructure and multi-cloud offerings. Investors should closely monitor Oracle's upcoming financial analyst meeting for more detailed insights into its financial plans.
References:
[1] Oracle Announces Fiscal Year 2026 First Quarter Financial Results. Retrieved from https://investor.oracle.com/investor-news/news-details/2025/Oracle-Announces-Fiscal-Year-2026-First-Quarter-Financial-Results/default.aspx
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