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 reported impressive results for its fourth fiscal quarter, ending May 31, 2025. The company achieved revenue of $15.9 billion, a 11% year-over-year increase, surpassing analyst expectations. The GAAP net income was $3.43 billion, up 9% from the previous year, while non-GAAP net income reached $4.88 billion. The GAAP earnings per share were $1.19, and non-GAAP earnings per share were $1.70, both exceeding forecasts. The board declared a quarterly cash dividend of $0.50 per share.

Oracle's core cloud services and license support segment generated $11.7 billion in revenue, a 14% increase year-over-year. The cloud license and on-premises license business segment brought in $2.01 billion, up 9% from the previous year. However, services revenue decreased 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, including 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 of 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 the 2026 fiscal year, Oracle's CEO Safra Catz projected total revenue growth of 12% to 14% in constant currency, with cloud services revenue expected to increase 26% to 30%. Non-GAAP earnings per share are anticipated to grow 4% to 6%, ranging from $1.40 to $1.48 on a constant currency basis. Catz also raised the company's revenue guidance for the 2026 fiscal year to over $67 billion, representing a growth of more than 16%. Cloud revenue is expected to grow over 40%, with cloud infrastructure (OCI) revenue increasing over 70%. The remaining performance obligation (RPO) is projected to grow over 100% in the 2026 fiscal year.