Oracle Reports Lower Than Expected Quarterly Revenue
ByAinvest
Tuesday, Sep 9, 2025 4:09 pm ET1min read
ORCL--
Despite the overall revenue decline, Oracle's cloud services business demonstrated significant growth, increasing 32% YoY to $7.2 billion [2]. This growth was fueled by the company's substantial investments in artificial intelligence (AI) and infrastructure, with Oracle securing a significant number of Nvidia's GPUs and renting out that computing power through its OCI cloud business [1].
The company's net income fell 24% YoY to $2.66 billion, primarily due to increased expenses related to its AI initiatives and infrastructure projects [1]. Oracle's CEO, Safra Catz, highlighted the company's strong performance in securing large contracts and the growing demand for its cloud infrastructure services [2].
Investors will be closely watching for details on Oracle's $30 billion deal with OpenAI, as well as the progress of the Stargate AI project, which is expected to contribute significantly to the company's future growth [1]. The deal with OpenAI is anticipated to bring in over $30 billion in annual revenue starting in Oracle's 2028 fiscal year, sending the stock to a new record [1].
While the company's overall financial performance was mixed, the strong growth in cloud services and the potential for significant future revenue from the OpenAI deal and Stargate project indicate that Oracle remains a key player in the AI and cloud computing markets.
References:
[1] https://finance.yahoo.com/news/oracle-set-to-report-earnings-with-wall-street-expecting-30-ai-fueled-growth-in-cloud-business-154530473.html
[2] https://investor.oracle.com/investor-news/news-details/2025/Oracle-Announces-Fiscal-Year-2026-First-Quarter-Financial-Results/default.aspx
Oracle missed quarterly revenue estimates, with net sales declining 3% YoY to $11.83bn, driven by a 9% drop in cloud services and license support sales. The company's net income also fell 24% to $2.66bn. Despite this, Oracle's cloud services business grew 32% YoY.
Oracle Corporation (ORCL) reported its fiscal first-quarter earnings on September 9, 2025, with mixed results. The company's total revenue declined 3% year-over-year (YoY) to $11.83 billion, missing analysts' expectations of $12.2 billion [2]. Net sales dropped 3% YoY, driven by a 9% decline in cloud services and license support sales [2].Despite the overall revenue decline, Oracle's cloud services business demonstrated significant growth, increasing 32% YoY to $7.2 billion [2]. This growth was fueled by the company's substantial investments in artificial intelligence (AI) and infrastructure, with Oracle securing a significant number of Nvidia's GPUs and renting out that computing power through its OCI cloud business [1].
The company's net income fell 24% YoY to $2.66 billion, primarily due to increased expenses related to its AI initiatives and infrastructure projects [1]. Oracle's CEO, Safra Catz, highlighted the company's strong performance in securing large contracts and the growing demand for its cloud infrastructure services [2].
Investors will be closely watching for details on Oracle's $30 billion deal with OpenAI, as well as the progress of the Stargate AI project, which is expected to contribute significantly to the company's future growth [1]. The deal with OpenAI is anticipated to bring in over $30 billion in annual revenue starting in Oracle's 2028 fiscal year, sending the stock to a new record [1].
While the company's overall financial performance was mixed, the strong growth in cloud services and the potential for significant future revenue from the OpenAI deal and Stargate project indicate that Oracle remains a key player in the AI and cloud computing markets.
References:
[1] https://finance.yahoo.com/news/oracle-set-to-report-earnings-with-wall-street-expecting-30-ai-fueled-growth-in-cloud-business-154530473.html
[2] https://investor.oracle.com/investor-news/news-details/2025/Oracle-Announces-Fiscal-Year-2026-First-Quarter-Financial-Results/default.aspx
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet