Oracle Corporation, an American multinational computer technology company, was founded in 1977 by Larry Ellison, Bob Miner, and Ed Oates. Headquartered in Austin, Texas, Oracle is renowned for its innovative database software and technology. The company offers a comprehensive range of enterprise software products and cloud solutions, including Oracle Database, ERP, HCM, and CRM applications. Oracle’s pioneering efforts in autonomous databases and cloud computing have positioned it as a leader in the tech industry. With over 160,000 employees worldwide and operations in more than 150 countries, Oracle continues to drive digital transformation and support businesses globally.
Oracle Fiscal Q2 2025
Oracle (ORCL) Q2 2025 fiscal report showed GAAP earnings per share (EPS) of $1.10, which was below expectations of $1.12. Also, the company’s total revenue was $14.1 billion, slightly missing the forecast of $14.12 billion
Key Highlights of Earning:
- Total Revenue: $14.1 billion, up 9% year-over-year
- Cloud Services and License Support Revenues: $10.8 billion, up 12% year-over-year.
- Cloud License and On-Premises License Revenues: $1.2 billion, up 1% in USD.
- Operating Income: Non-GAAP operating income of $6.1 billion, up 10% year-over-year and GAAP operating income of $4.2 billion.
- Net Income: Non-GAAP net income of $4.2 billion, up 12% year-over-year and GAAP net income of $3.2 billion.
- Earnings Per Share: Non-GAAP EPS of $1.47, up 10% year-over-year and GAAP EPS of $1.10, up 24% year-over-year.
- Cloud Infrastructure Revenue: $2.4 billion, up 52% year-over-year.
- Remaining Performance Obligations (RPO): $97 billion, up 50% year-over-year
Guidance:
Oracle Corporation has provided guidance for fiscal year 2025, projecting total Cloud revenue to exceed $25 billion. The company expects continued strong growth, driven by record-level AI demand and strategic partnerships, such as the recent agreement with Meta to use Oracle’s AI Cloud Infrastructure.
Board Statements
Oracle’s board highlighted the company’s impressive Q2 2025 financial performance and growth in AI demand.
CEO Safra Catz emphasized the record-level AI demand, which drove Oracle Cloud Infrastructure revenue up 52%, and the growth in their remaining performance obligations to $97 billion.
Larry Ellison, Chairman and CTO, discussed Oracle’s strategic agreement with Meta and the development of AI Agents. Ellison also highlighted various applications of Oracle’s AI technology in fields like drug design, cancer diagnostics, agricultural output, fraud detection, and security. These statements underscore Oracle’s leadership in cloud computing and AI innovation, as well as their future growth potential.
Impact on the Stock Market
Oracle’s stock fell by 7.8% in after-hours trading following the earnings release because the company’s Q2 2025 Eps and revenue results missed estimates.
While Oracle’s investments in cloud infrastructure and AI are driving growth, they also result in high capital expenditures, which can be a concern for investors worried about profitability and cash flow.
Also, there are concerns about potential pricing pressures in the cloud services market, which could impact Oracle’s margins and revenue growth in the future.
These factors contributed to investor concerns, leading to the stock’s decline.
