Oracle Corporation (NYSE: ORCL) announced today the results of the third fiscal quarter of 2025. The total of Remaining Performance Obligations increased by 62% year over year in U.S. dollars and 63% in constant currency, for US$ 130 billion. Total quarterly revenues increased by 6% compared to the previous year in US dollars and 8% in constant currency, for US$ 14,1 billion. Cloud service and license support revenues increased by 10% compared to the previous year, in US dollars, and 12% in constant currency, for US$ 11,0 billion. Cloud license and on-premises license revenues fell by 10% in dollars and 8% in constant currency, for US$ 1,1 billion.
The GAAP operating profit for the third quarter was US$ 4,4 billion. The non-GAAP operating profit was US$ 6,2 billion, 7% more in US dollars and 9% more in constant currency. The GAAP operating margin was 31%, and the non-GAAP operating margin was 44%. The GAAP net income was US$ 2,9 billion, an increase of 22% in US dollars and 27% in constant currency. The non-GAAP net income was US$ 4,2 billion, a 6% increase in US dollars and a 9% increase in constant currency. The GAAP earnings per share in the third quarter was $1,02, 20% more in US dollars and 25% more in constant currency, while the non-GAAP earnings per share was US$ 1,47, 4% more in US dollars and 7% more in constant currency
The short-term deferred revenues were US$ 9,0 billion. In the last twelve months, the operating cash flow was US$ 20,7 billion and the free cash flow was US$ 5,8 billion
"Oracle signed sales contracts worth over $48 billion in the third quarter", said the CEO of Oracle, Safra Catz. "This record number of sales raised our Remaining Performance Obligations", or RPO, at 63%, for more than US$ 130 billion. We have already signed cloud contracts with several leading global technology companies, including OpenAI, xAI, Meta, NVIDIA and AMD. We hope that our large sales portfolio of $130 billion will help drive a 15% increase in Oracle's overall revenue in our next fiscal year, that starts in June. And we hope that the RPO continues to grow rapidly, because we are eager to sign our first contract with Stargate – another great opportunity for Oracle to expand its AI training and inference business in the near future.”
"We are on schedule to double the capacity of our data center this year", said the founder and CTO of Oracle, Larry Ellison. "Customer demand is at record levels". Our MultiCloud database recipe from Microsoft, Google and Amazon increased by 92% in just the last three months. GPU consumption for AI training has increased by 244% in the last 12 months. And we are observing a huge demand for AI inference on our clients' private data. That's why, we are connecting OpenAI ChatGPT, the xAI Grok and the Meta Llama directly to the 23ai version of the Oracle Database with advanced vector features. This new product, called Oracle AI Data Platform, makes it easier for customers to use any of the world's leading AI models to analyze all their private data – keeping all your private data safe and secure.
Oracle also announced that its Board of Directors declared a quarterly cash dividend of $0,50 per ordinary share outstanding, reflecting a 25% increase compared to the current quarterly dividend of $0,40. Larry Ellison, chairman of the Board of Directors, technology director and largest shareholder of Oracle, did not participate in the deliberation or the vote on this matter. This increase in dividends will be paid to shareholders registered at the close of business on April 10, 2025, with a payment date of April 23, 2025
- A sample list of customers who purchased Oracle Cloud services during the quarter will be available atoracle.com/customers/earnings/.
- A list of recent technical innovations and announcements is available atoracle.com/news/.
- To know what industry analysts have said about Oracle's products and services, accessoracle.com/corporate/analyst-reports/.
