Oracle Stock Soars 7.57% on Strong Q4 Earnings

Oracle's stock surged 7.57% in pre-market trading on June 12, 2025, driven by strong financial performance and optimistic outlook for the future.

Oracle's fourth fiscal quarter of 2025 saw impressive results, with revenue reaching $15.9 billion, a 11% year-over-year increase, surpassing analyst expectations. The company's GAAP net income was $3.43 billion, up 9% from the previous year, while non-GAAP net income stood at $4.88 billion. Earnings per share (EPS) on a GAAP basis were $1.19, and non-GAAP EPS were $1.70, both exceeding forecasts. The board also declared a quarterly cash dividend of $0.50 per share.

Breaking down the revenue by segment, the core cloud services and license support division generated $11.7 billion, a 14% increase year-over-year. The cloud license and on-premises license business brought in $2.01 billion, up 9% from the previous year. However, services revenue declined 2% to $1.35 billion, and hardware revenue grew 1% to $850 million.

Oracle's cloud infrastructure (IaaS) revenue for the quarter was $3 billion, a 52% year-over-year increase, although slightly below expectations. Overall cloud revenue, which includes IaaS and SaaS, grew 27% to $6.7 billion, accounting for 42% of total revenue. Larry Ellison, Oracle's chairman and CTO, highlighted the company's multi-cloud database revenue growth, which increased 115% from the third to the fourth quarter, with 23 multi-cloud data centers currently operational and 47 more planned for the next 12 months.

Looking ahead to fiscal year 2026, Oracle's CEO Safra Catz projected total revenue growth of 12% to 14% in constant currency, with cloud services revenue expected to grow 26% to 30%. Non-GAAP EPS is anticipated to increase 4% to 6%, ranging from $1.40 to $1.48 on a constant currency basis. Catz also raised the company's revenue guidance for fiscal year 2026 to over $67 billion, representing a growth of more than 16%. Cloud revenue is expected to grow over 40%, with cloud infrastructure (OCI) revenue growing over 70%. The remaining performance obligation (RPO) is projected to increase by over 100% in fiscal year 2026.