Oracle has made headlines in the tech world as its shares surged approximately 8% in after-hours trading following an impressive quarterly earnings report. The company revealed that it surpassed Wall Street expectations with its latest results, indicating robust growth in its cloud business.
In its fiscal fourth quarter, which concluded on May 31, Oracle reported earnings per share of $1.70, adjusted for various factors, compared to the anticipated $1.64. Revenue stood at $15.9 billion, exceeding the expected $15.59 billion. Year-over-year, this marked an 11% increase, with net income rising to $3.43 billion, or $1.19 per share, up from $3.14 billion, or $1.11 per share, in the same quarter last year.
Looking ahead, Oracle forecasts adjusted earnings per share for the upcoming fiscal first quarter to fall between $1.46 and $1.50, alongside a projected revenue growth rate of 12% to 14%. Analysts had been anticipating earnings of $1.48 per share and revenue of $14.96 billion, signaling an estimated growth of 12.4%.
During a conference call, CEO Safra Catz highlighted a staggering expected increase of over 70% in cloud infrastructure revenue for the 2026 fiscal year, a substantial rise from the 52% growth witnessed in the most recent quarter. She projects the company will achieve revenue exceeding $67 billion for fiscal 2026, outpacing the consensus forecast of $65.18 billion from LSEG.
Catz also noted that Oracle is likely to surpass its earlier revenue target of $104 billion for fiscal 2029, a projection shared in September. The fourth-quarter revenue from cloud services and license support reached $11.7 billion, again surpassing the $11.59 billion consensus from analysts. Additionally, cloud and on-premises license revenue came in at $2.01 billion, exceeding the $1.82 billion forecast by StreetAccount.
The quarter saw Oracle announce significant partnerships, including a collaboration with Cleveland Clinic and G42, an AI-focused entity from the United Arab Emirates, aimed at developing an AI delivery platform for healthcare. Furthermore, Oracle established cloud and consulting agreements with IBM and noted SoftBank’s planned acquisition of Oracle-backed chip design startup Ampere for $6.5 billion. Larry Ellison, co-founder and chief technology officer, revealed that the Chinese online retailer Temu is transitioning its infrastructure to Oracle’s cloud.
Capital expenditures for fiscal 2025 soared past $21 billion, a sharp increase from under $7 billion in fiscal 2024. Looking ahead, Catz indicated that this figure is expected to exceed $25 billion in the new fiscal year. Ellison remarked on the overwhelming demand for capacity, stating, “We never got an order like that before,” referring to a recent request for all available cloud capacity from an unnamed client. This demand, he noted, is unprecedented.
As of the end of Wednesday’s trading, Oracle’s shares have risen 6% year-to-date, in contrast to a 2% increase in the S&P 500 index. This remarkable performance reflects Oracle’s growing influence in the cloud space and signals a promising outlook for the company as it continues to adapt to evolving market demands.
Original Source: https://www.cnbc.com/2025/06/11/oracle-orcl-q4-earnings-report-2025.html
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Publish Date: 2025-06-12 03:47:00
