Oracle Q3 Earnings Report Summary

Date: Fiscal Q3 2025

Executive Summary

Oracle Corporation announced its fiscal Q3 2025 financial results, reporting growth in total revenue, cloud services, and earnings per share. Key highlights include a substantial increase in remaining performance obligations and a record $48 billion in new sales contracts. The company also declared an increased quarterly dividend. Oracle's reported strong financial growth, particularly in cloud services and AI-related business expansions. 

Key Provisions

• Revenue Performance

  • Total Revenue: $14.1 billion, up 6% in USD and 8% in constant currency.
  • Cloud Revenue (Infrastructure as a Service (IaaS) + Software as a Service (SaaS)): $6.2 billion, up 23% in USD and 25% in constant currency.
  • Cloud Infrastructure (IaaS) Revenue: $2.7 billion, up 49% in USD and 51% in constant currency.
  • Cloud Application (SaaS) Revenue: $3.6 billion, up 9% in USD and 10% in constant currency.
  • Fusion Cloud Enterprise Resource Planning (ERP) Revenue: $0.9 billion, up 16% in USD and 18% in constant currency.
  • NetSuite Cloud ERP Revenue: $0.9 billion, up 16% in USD and 17% in constant currency.

• Profitability

  • GAAP Operating Income: $4.4 billion, with an operating margin of 31%.
  • Non-GAAP Operating Income: $6.2 billion, up 7% in USD and 9% in constant currency.
  • GAAP Net Income: $2.9 billion, up 22% in USD and 27% in constant currency.
  • Non-GAAP Net Income: $4.2 billion, up 6% in USD and 9% in constant currency.
  • GAAP Earnings per Share (EPS): $1.02, up 20% in USD and 25% in constant currency.
  • Non-GAAP EPS: $1.47, up 4% in USD and 7% in constant currency.

• Remaining Performance Obligations (RPO)

  • RPO reached $130 billion, up 62% in USD and 63% in constant currency.
  • Oracle signed new sales contracts worth over $48 billion, contributing significantly to the increased RPO.

• Strategic Growth Initiatives

  • Oracle expanded cloud agreements with major technology companies including OpenAI, xAI, Meta, NVIDIA, and AMD .
  • The company is preparing to sign its first Stargate contract to expand its AI training and inferencing businesses.
  • Database MultiCloud revenue from partnerships with Microsoft, Google, and Amazon increased 92% in the past three months.
  • GPU consumption for AI training rose by 244% over the last year.

• Cash Flow and Financial Stability

  • Operating Cash Flow (12-months): $20.7 billion.
  • Free Cash Flow (12-months): $5.8 billion.
  • Short-term Deferred Revenue: $9 billion.

• Dividend Announcement

  • Oracle's Board of Directors approved a 25% increase in its quarterly dividend, raising it from $0.40 to $0.50 per share.
  • The new dividend will be paid on April 23, 2025, to stockholders of record as of April 10, 2025.

Source: https://investor.oracle.com/investor-news/news-details/2025/Oracle-Announces-Fiscal-2025-Third-Quarter-Financial-Results/default.aspx