Oracle Announces Fiscal 2025 Fourth Quarter and Fiscal Full Year Financial Results
-- Q4 Remaining Performance Obligations up 41% to $138 billion
-- Q4 GAAP Earnings per Share $1.19, non-GAAP Earnings per Share $1.70
-- Q4 Total Revenue $15.9 billion, up 11%
-- Q4 Cloud Revenue (IaaS plus SaaS) $6.7 billion, up 27%
-- Q4 Cloud Infrastructure (IaaS) Revenue $3.0 billion, up 52%
-- Q4 Cloud Application (SaaS) Revenue $3.7 billion, up 12%
-- Q4 Fusion Cloud ERP (SaaS) Revenue $1.0 billion, up 22%
-- Q4 NetSuite Cloud ERP (SaaS) Revenue $1.0 billion, up 18%
-- FY 2025 Total Revenue $57.4 billion, up 8%
AUSTIN, Texas, June 11, 2025 /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2025 Q4 and full-year 2025 results. Total quarterly revenues were up 11% year-over-year in USD and constant currency to $15.9 billion. Cloud services and license support revenues were up 14% in USD and constant currency to $11.7 billion. Cloud license and on-premise license revenues were up 9% in USD and up 8% in constant currency to $2.0 billion.
Q4 GAAP operating income was $5.1 billion. Non-GAAP operating income was $7.0 billion, up 5% in USD and up 4% in constant currency. GAAP net income was $3.4 billion, and non-GAAP net income was $4.9 billion. GAAP earnings per share was $1.19 while non-GAAP earnings per share was $1.70.
Short-term deferred revenues were $9.4 billion. Operating cash flow was $20.8 billion during fiscal year 2025, up 12% in USD.
Fiscal year 2025 total revenues were up 8% in USD and up 9% in constant currency to $57.4 billion. Cloud services and license support revenues were up 12% in USD and constant currency to $44.0 billion. Cloud license and on-premise license revenues were up 2% in USD and up 3% in constant currency to $5.2 billion.
Fiscal year 2025 GAAP operating income was $17.7 billion, and non-GAAP operating income was $25.0 billion. GAAP net income was $12.4 billion while non-GAAP net income was $17.3 billion. GAAP earnings per share was $4.34, while non-GAAP earnings per share was $6.03.
"FY25 was a very good year--but we believe FY26 will be even better as our revenue growth rates will be dramatically higher," said Oracle CEO, Safra Catz. "We expect our total cloud growth rate--applications plus infrastructure--will increase from 24% in FY25 to over 40% in FY26. Cloud Infrastructure growth rate is expected to increase from 50% in FY25 to over 70% in FY26. And RPO is likely to grow more than 100% in FY26. Oracle is well on its way to being not only the world's largest cloud application company--but also one of the world's largest cloud infrastructure companies."
"MultiCloud database revenue from Amazon, Google and Azure grew 115% from Q3 to Q4," said Oracle Chairman and CTO, Larry Ellison. "We currently have 23 MultiCloud datacenters live with 47 more being built over the next 12 months. We expect triple-digit MultiCloud revenue growth to continue in FY26. Revenue from Oracle Cloud@Customer datacenters grew 104% year-over-year. We have 29 Oracle Cloud@Customer dedicated datacenters live with another 30 being built in FY26. Overall Oracle Cloud Infrastructure consumption revenue grew 62% in Q4. We expect OCI consumption revenue to grow even faster in FY26. OCI revenue growth rates are skyrocketing--so is demand."
The board of directors declared a quarterly cash dividend of $0.50 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on July 10, 2025, with a payment date of July 24, 2025.
-- A sample list of customers which purchased Oracle Cloud services during
the quarter will be available at www.oracle.com/customers/earnings/.
-- A list of recent technical innovations and announcements is available at
www.oracle.com/news/.
-- To learn what industry analysts have been saying about Oracle's products
and services see www.oracle.com/corporate/analyst-reports/.
Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website at www.oracle.com/investor/.
About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.
Trademarks
Oracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company--ushering in the new era of cloud computing.
"Safe Harbor" Statement: Statements in this press release relating to future plans, expectations, beliefs, intentions and prospects, including projections for our growth in FY26 and our expectations of relative size among cloud applications and infrastructure companies, are "forward-looking statements" and are subject to material risks and uncertainties. Risks and uncertainties that could affect our current expectations and our actual results, include, among others: our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services, including our AI products; our management of complex cloud and hardware offerings, including the sourcing of technologies and technology components; our ability to secure datacenter capacity; significant coding, manufacturing or configuration errors in our offerings; risks associated with acquisitions; economic, political and market conditions; information technology system failures, privacy and data security concerns; cybersecurity breaches; unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on the Oracle Investor Relations website at www.oracle.com/investor/. All information set forth in this press release is current as of June 11, 2025. Oracle undertakes no duty to update any statement in light of new information or future events.
ORACLE CORPORATION
Q4 FISCAL 2025 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
Three Months Ended May 31, % Increase
% Increase (Decrease)
2025 % of 2024 % of (Decrease) in Constant
Revenues Revenues in US $ Currency (1)
REVENUES
Cloud services and license support $11,698 74 % $10,234 72 % 14 % 14 %
Cloud license and on-premise license 2,007 13 % 1,838 13 % 9 % 8 %
Hardware 850 5 % 842 6 % 1 % 0 %
Services 1,348 8 % 1,373 9 %
(2 %)
(2 %)
Total revenues 15,903 100 % 14,287 100 % 11 % 11 %
OPERATING EXPENSES
Cloud services and license support 3,343 21 % 2,522 18 % 33 % 32 %
Hardware 252 2 % 241 2 % 4 % 4 %
Services 1,145 7 % 1,160 8 %
(1 %)
(2 %)
Sales and marketing 2,306 15 % 2,114 15 % 9 % 9 %
Research and development 2,654 17 % 2,226 15 % 19 % 20 %
General and administrative 467 3 % 402 3 % 16 % 16 %
Amortization of intangible assets 544 3 % 743 5 %
(27 %)
(27 %)
Acquisition related and other 4 0 % 101 1 %
(96 %)
(97 %)
Restructuring 79 0 % 92 0 %
(15 %)
(16 %)
Total operating expenses 10,794 68 % 9,601 67 % 12 % 12 %
OPERATING INCOME 5,109 32 % 4,686 33 % 9 % 7 %
Interest expense (978)
(6 %) (878)
(6 %) 11 % 11 %
Non-operating income (expenses), net 20 0 % (26) 0 %
*
*
INCOME BEFORE INCOME TAXES 4,151 26 % 3,782 27 % 10 % 8 %
Provision for income taxes 724 4 % 639 5 % 13 % 11 %
NET INCOME $3,427 22 % $3,143 22 % 9 % 7 %
EARNINGS PER SHARE:
Basic $1.22 $1.14
Diluted $1.19 $1.11
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 2,805 2,753
Diluted 2,871 2,834
(1) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing
how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities
reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2024, which was the last day of our prior fiscal
year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the three months ended May
31, 2025 compared with the corresponding prior year period increased our operating income by 2 percentage points.
*
Not meaningful
ORACLE CORPORATION
Q4 FISCAL 2025 FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)
Three Months Ended May 31, % Increase % Increase
(Decrease) (Decrease)
in US $ in Constant
Currency (2)
2025 2025 2024 2024 GAAP Non-GAAP GAAP Non-GAAP
GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
TOTAL REVENUES $15,903
$ - $15,903 $14,287
$ - $14,287 11 % 11 % 11 % 11 %
TOTAL OPERATING EXPENSES $10,794 $(1,926) $8,868 $9,601 $(1,983) $7,618 12 % 16 % 12 % 16 %
Stock-based compensation (3) 1,299 (1,299) 1,047 (1,047) 24 % * 24 % *
Amortization of intangible assets (4) 544 (544) 743 (743) (27 %) * (27 %) *
Acquisition related and other 4 (4) 101 (101) (96 %) * (97 %) *
Restructuring 79 (79) 92 (92) (15 %) * (16 %) *
OPERATING INCOME $5,109 $1,926 $7,035 $4,686 $1,983 $6,669 9 % 5 % 7 % 4 %
OPERATING MARGIN % 32 % 44 % 33 % 47 % (67) bp. (244) bp. (96) bp. (266) bp.
INCOME TAX EFFECTS (5) $724 $472 $1,196 $639 $519 $1,158 13 % 3 % 11 % 2 %
NET INCOME $3,427 $1,454 $4,881 $3,143 $1,464 $4,607 9 % 6 % 7 % 5 %
DILUTED EARNINGS PER SHARE $1.19 $1.70 $1.11 $1.63 8 % 5 % 6 % 3 %
DILUTED WEIGHTED AVERAGE COMMON 2,871 2,871 2,834 2,834 1 % 1 % 1 % 1 %
SHARES OUTSTANDING
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in
conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why
management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.
(2) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing
how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities
reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2024, which was the last day of our prior fiscal
year, rather than the actual exchange rates in effect during the respective periods.
(3)
Stock-based compensation was included in the following GAAP operating expense categories:
Three Months Ended
Three Months Ended
May 31, 2025
May 31, 2024
GAAP Adj. Non-GAAP
GAAP Adj. Non-GAAP
Cloud services and license support $150 $(150)
$ - $140 $(140)
$ -
Hardware 7 (7) 6 (6)
Services 52 (52) 44 (44)
Sales and marketing 200 (200) 178 (178)
Research and development 737 (737) 583 (583)
General and administrative 153 (153) 96 (96)
Total stock-based compensation $1,299 $(1,299)
$ - $1,047 $(1,047)
$ -
(4)
Estimated future annual amortization expense related to intangible assets as of May 31, 2025 was as follows:
Fiscal 2026 $1,639
Fiscal 2027 672
Fiscal 2028 635
Fiscal 2029 561
Fiscal 2030 522
Thereafter 558
Total intangible assets, net $4,587
(5) Income tax effects were calculated reflecting an effective GAAP tax rate of 17.5% and 16.9% in the fourth quarter of fiscal 2025 and 2024, respectively, and an effective non-GAAP tax rate of
19.7% and 20.1% in the fourth quarter of fiscal 2025 and 2024, respectively. The difference in our GAAP and non-GAAP tax rates in each of the fourth quarters of fiscal 2025 and 2024 was
primarily due to the net tax effects related to stock-based compensation expense; acquisition related and other items, including the tax effects on amortization of intangible assets; and
restructuring expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity
structure.
*
Not meaningful
ORACLE CORPORATION
FISCAL 2025 YEAR TO DATE FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
Year Ended May 31, % Increase
% Increase (Decrease)
2025 % of 2024 % of (Decrease) in Constant
Revenues Revenues in US $ Currency (1)
REVENUES
Cloud services and license support $44,029 77 % $39,383 74 % 12 % 12 %
Cloud license and on-premise license 5,201 9 % 5,081 10 % 2 % 3 %
Hardware 2,936 5 % 3,066 6 %
(4 %)
(4 %)
Services 5,233 9 % 5,431 10 %
(4 %)
(3 %)
Total revenues 57,399 100 % 52,961 100 % 8 % 9 %
OPERATING EXPENSES
Cloud services and license support 11,569 20 % 9,427 18 % 23 % 23 %
Hardware 782 1 % 891 2 %
(12 %)
(11 %)
Services 4,576 8 % 4,825 9 %
(5 %)
(5 %)
Sales and marketing 8,651 15 % 8,274 15 % 5 % 5 %
Research and development 9,860 17 % 8,915 17 % 11 % 11 %
General and administrative 1,602 3 % 1,548 3 % 3 % 4 %
Amortization of intangible assets 2,307 4 % 3,010 6 %
(23 %)
(23 %)
Acquisition related and other 75 0 % 314 0 %
(76 %)
(76 %)
Restructuring 299 1 % 404 1 %
(26 %)
(26 %)
Total operating expenses 39,721 69 % 37,608 71 % 6 % 6 %
OPERATING INCOME 17,678 31 % 15,353 29 % 15 % 16 %
Interest expense (3,578)
(6 %) (3,514)
(7 %) 2 % 2 %
Non-operating income (expenses), net 60 0 % (98) 0 %
*
*
INCOME BEFORE INCOME TAXES 14,160 25 % 11,741 22 % 21 % 21 %
Provision for income taxes 1,717 3 % 1,274 2 % 35 % 36 %
NET INCOME $12,443 22 % $10,467 20 % 19 % 20 %
EARNINGS PER SHARE:
Basic $4.46 $3.82
Diluted $4.34 $3.71
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 2,789 2,744
Diluted 2,866 2,823
(1) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing
how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities
reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2024, which was the last day of our prior fiscal
year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the year ended May 31, 2025
compared with the corresponding prior year period decreased each of our total revenues and operating income by 1 percentage point.
*
Not meaningful
ORACLE CORPORATION
FISCAL 2025 YEAR TO DATE FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)
Year Ended May 31, % Increase % Increase
(Decrease) (Decrease) in
in US $ Constant
Currency (2)
2025 2025 2024 2024 GAAP Non-GAAP GAAP Non-GAAP
GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
TOTAL REVENUES $57,399
$ - $57,399 $52,961
$ - $52,961 8 % 8 % 9 % 9 %
TOTAL OPERATING EXPENSES $39,721 $(7,355) $32,366 $37,608 $(7,702) $29,906 6 % 8 % 6 % 9 %
Stock-based compensation (3) 4,674 (4,674) 3,974 (3,974) 18 %
* 18 % *
Amortization of intangible assets (4) 2,307 (2,307) 3,010 (3,010) (23 %)
* (23 %) *
Acquisition related and other 75 (75) 314 (314) (76 %)
* (76 %) *
Restructuring 299 (299) 404 (404) (26 %)
* (26 %) *
OPERATING INCOME $17,678 $7,355 $25,033 $15,353 $7,702 $23,055 15 % 9 % 16 % 9 %
OPERATING MARGIN % 31 % 44 % 29 % 44 % 181 bp. 8 bp. 182 bp. 4 bp.
INCOME TAX EFFECTS (5) $1,717 $2,514 $4,231 $1,274 $2,459 $3,733 35 % 13 % 36 % 14 %
NET INCOME $12,443 $4,841 $17,284 $10,467 $5,243 $15,710 19 % 10 % 20 % 11 %
DILUTED EARNINGS PER SHARE $4.34 $6.03 $3.71 $5.56 17 % 8 % 18 % 9 %
DILUTED WEIGHTED AVERAGE COMMON 2,866 2,866 2,823 2,823 2 % 2 % 2 % 2 %
SHARES OUTSTANDING
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in
conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why
management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.
(2) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing
how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities
reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2024, which was the last day of our prior fiscal
year, rather than the actual exchange rates in effect during the respective periods.
(3)
Stock-based compensation was included in the following GAAP operating expense categories:
Year Ended
Year Ended
May 31, 2025
May 31, 2024
GAAP Adj. Non-GAAP
GAAP Adj. Non-GAAP
Cloud services and license support $609 $(609)
$ - $525 $(525)
$ -
Hardware 29 (29) 23 (23)
Services 202 (202) 167 (167)
Sales and marketing 757 (757) 667 (667)
Research and development 2,638 (2,638) 2,225 (2,225)
General and administrative 439 (439) 367 (367)
Total stock-based compensation $4,674 $(4,674)
$ - $3,974 $(3,974)
$ -
(4)
Estimated future annual amortization expense related to intangible assets as of May 31, 2025 was as follows:
Fiscal 2026 $1,639
Fiscal 2027 672
Fiscal 2028 635
Fiscal 2029 561
Fiscal 2030 522
Thereafter 558
Total intangible assets, net $4,587
(5) Income tax effects were calculated reflecting an effective GAAP tax rate of 12.1% and 10.9% in fiscal 2025 and 2024, respectively, and an effective non-GAAP tax rate of 19.7% and 19.2% in
fiscal 2025 and 2024, respectively. The difference in our GAAP and non-GAAP tax rates in each of fiscal 2025 and 2024 was primarily due to the net tax effects related to stock-based
compensation expense; acquisition related and other items, including the tax effects on amortization of intangible assets; and restructuring expense, partially offset by the net deferred tax
effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure.
*
Not meaningful
ORACLE CORPORATION
FISCAL 2025 FINANCIAL RESULTS
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in millions)
May 31, May 31,
2025 2024
ASSETS
Current Assets:
Cash and cash equivalents $10,786 $10,454
Marketable securities 417 207
Trade receivables, net 8,558 7,874
Prepaid expenses and other current
assets 4,818 4,019
Total Current Assets 24,579 22,554
Non-Current Assets:
Property, plant and equipment, net 43,522 21,536
Intangible assets, net 4,587 6,890
Goodwill, net 62,207 62,230
Deferred tax assets 11,877 12,273
Other non-current assets 21,589 15,493
Total Non-Current Assets 143,782 118,422
TOTAL ASSETS $168,361 $140,976
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes payable and other borrowings,
current $7,271 $10,605
Accounts payable 5,113 2,357
Accrued compensation and related
benefits 2,243 1,916
Deferred revenues 9,387 9,313
Other current liabilities 8,629 7,353
Total Current Liabilities 32,643 31,544
Non-Current Liabilities:
Notes payable and other borrowings,
non-current 85,297 76,264
Income taxes payable 10,269 10,817
Operating lease liabilities 11,536 6,255
Other non-current liabilities 7,647 6,857
Total Non-Current Liabilities 114,749 100,193
Stockholders' Equity 20,969 9,239
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $168,361 $140,976
ORACLE CORPORATION
FISCAL 2025 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions)
Year Ended May 31,
2025 2024
Cash Flows From Operating Activities:
Net income $12,443 $10,467
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 3,867 3,129
Amortization of intangible assets 2,307 3,010
Deferred income taxes (1,637) (2,139)
Stock-based compensation 4,674 3,974
Other, net 667 720
Changes in operating assets and liabilities:
Increase in trade receivables, net (653) (965)
Decrease in prepaid expenses and other assets 266 542
Decrease in accounts payable and other liabilities (608) (594)
Decrease in income taxes payable (659) (127)
Increase in deferred revenues 154 656
Net cash provided by operating activities 20,821 18,673
Cash Flows From Investing Activities:
Purchases of marketable securities and other investments (1,272) (1,003)
Proceeds from sales and maturities of marketable securities and other investments 776 572
Acquisitions, net of cash acquired (63)
Capital expenditures (21,215) (6,866)
Net cash used for investing activities (21,711) (7,360)
Cash Flows From Financing Activities:
Payments for repurchases of common stock (600) (1,202)
Proceeds from issuances of common stock 653 742
Shares repurchased for tax withholdings upon vesting of restricted stock-based
awards (900) (2,040)
Payments of dividends to stockholders (4,743) (4,391)
Proceeds from issuances of (repayments of) commercial paper, net 1,889 (167)
Proceeds from issuances of senior notes and term loan credit agreements, net of
issuance costs 19,548
Repayments of senior notes and term loan credit agreements (15,841) (3,500)
Other financing activities, net 1,092 4
Net cash provided by (used for) financing activities 1,098 (10,554)
Effect of exchange rate changes on cash and cash equivalents 124 (70)
Net increase in cash and cash equivalents 332 689
Cash and cash equivalents at beginning of period 10,454 9,765
Cash and cash equivalents at end of period $10,786 $10,454
ORACLE CORPORATION
FISCAL 2025 FINANCIAL RESULTS
FREE CASH FLOW - TRAILING 4-QUARTERS (1)
($ in millions)
Fiscal 2024
Fiscal 2025
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
GAAP Operating Cash Flow $17,745 $17,039 $18,239 $18,673 $19,126 $20,287 $20,745 $20,821
Capital Expenditures (8,290) (6,935) (5,981) (6,866) (7,855) (10,745) (14,933) (21,215)
Free Cash Flow $9,455 $10,104 $12,258 $11,807 $11,271 $9,542 $5,812 $(394)
Operating Cash Flow % Growth over prior year 68 % 13 % 18 % 9 % 8 % 19 % 14 % 12 %
Free Cash Flow % Growth over prior year 76 % 20 % 68 % 39 % 19 %
(6 %)
(53 %)
(103 %)
GAAP Net Income $9,375 $10,137 $10,642 $10,467 $10,976 $11,624 $12,160 $12,443
Operating Cash Flow as a % of Net Income 189 % 168 % 171 % 178 % 174 % 175 % 171 % 167 %
Free Cash Flow as a % of Net Income 101 % 100 % 115 % 113 % 103 % 82 % 48 % (3) %
(1) To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows on a trailing 4-quarter basis to analyze cash flow generated from operations. We
believe free cash flow is also useful as one of the
bases for comparing our performance with our competitors. The presentation of non-GAAP free cash flow is not meant to be considered in isolation or as an alternative to net income as an indicator of
our performance, or as an alternative to cash
flows from operating activities as a measure of liquidity.
ORACLE CORPORATION
FISCAL 2025 FINANCIAL RESULTS
SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1)
($ in millions)
Fiscal 2024 Fiscal 2025
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
REVENUES BY OFFERINGS
Cloud services $4,635 $4,775 $5,054 $5,311 $19,774 $5,623 $5,937 $6,210 $6,737 $24,506
License support 4,912 4,864 4,909 4,923 19,609 4,896 4,869 4,797 4,961 19,523
Cloud services and license support 9,547 9,639 9,963 10,234 39,383 10,519 10,806 11,007 11,698 44,029
Cloud license and on-premise license 809 1,178 1,256 1,838 5,081 870 1,195 1,129 2,007 5,201
Hardware 714 756 754 842 3,066 655 728 703 850 2,936
Services 1,383 1,368 1,307 1,373 5,431 1,263 1,330 1,291 1,348 5,233
Total revenues $12,453 $12,941 $13,280 $14,287 $52,961 $13,307 $14,059 $14,130 $15,903 $57,399
AS REPORTED REVENUE GROWTH RATES
Cloud services 30 % 25 % 25 % 20 % 25 % 21 % 24 % 23 % 27 % 24 %
License support 2 % 2 % 1 % 0 % 1 % 0 % 0 % (2 %) 1 % 0 %
Cloud services and license support 13 % 12 % 12 % 9 % 12 % 10 % 12 % 10 % 14 % 12 %
Cloud license and on-premise license (10 %) (18 %) (3 %) (15 %) (12 %) 7 % 1 % (10 %) 9 % 2 %
Hardware (6 %) (11 %) (7 %) (1 %) (6 %) (8 %) (4 %) (7 %) 1 % (4 %)
Services 2 % (2 %) (5 %) (6 %) (3 %) (9 %) (3 %) (1 %) (2 %) (4 %)
Total revenues 9 % 5 % 7 % 3 % 6 % 7 % 9 % 6 % 11 % 8 %
CONSTANT CURRENCY REVENUE GROWTH RATES (2)
Cloud services 29 % 24 % 24 % 20 % 24 % 22 % 24 % 25 % 27 % 24 %
License support 0 % 0 % 1 % 1 % 0 % 0 % 0 % 0 % 0 % 0 %
Cloud services and license support 12 % 11 % 11 % 10 % 11 % 11 % 12 % 12 % 14 % 12 %
Cloud license and on-premise license (11 %) (19 %) (3 %) (14 %) (12 %) 8 % 3 % (8 %) 8 % 3 %
Hardware (8 %) (12 %) (7 %) 0 % (7 %) (8 %) (3 %) (5 %) 0 % (4 %)
Services 1 % (3 %) (5 %) (6 %) (3 %) (8 %) (3 %) 1 % (2 %) (3 %)
Total revenues 8 % 4 % 7 % 4 % 6 % 8 % 9 % 8 % 11 % 9 %
CLOUD SERVICES AND LICENSE SUPPORT REVENUES
BY ECOSYSTEM
Applications cloud services and license support $4,471 $4,474 $4,584 $4,642 $18,172 $4,769 $4,784 $4,811 $5,019 $19,383
Infrastructure cloud services and license support 5,076 5,165 5,379 5,592 21,211 5,750 6,022 6,196 6,679 24,646
Total cloud services and license support revenues $9,547 $9,639 $9,963 $10,234 $39,383 $10,519 $10,806 $11,007 $11,698 $44,029
AS REPORTED REVENUE GROWTH RATES
Applications cloud services and license support 11 % 10 % 10 % 6 % 9 % 7 % 7 % 5 % 8 % 7 %
Infrastructure cloud services and license support 15 % 14 % 13 % 12 % 14 % 13 % 17 % 15 % 19 % 16 %
Total cloud services and license support revenues 13 % 12 % 12 % 9 % 12 % 10 % 12 % 10 % 14 % 12 %
CONSTANT CURRENCY REVENUE GROWTH RATES (2)
Applications cloud services and license support 11 % 9 % 10 % 6 % 9 % 7 % 7 % 6 % 8 % 7 %
Infrastructure cloud services and license support 14 % 12 % 13 % 13 % 13 % 14 % 17 % 18 % 19 % 17 %
Total cloud services and license support revenues 12 % 11 % 11 % 10 % 11 % 11 % 12 % 12 % 14 % 12 %
GEOGRAPHIC REVENUES
Americas $7,841 $8,067 $8,270 $8,945 $33,122 $8,372 $8,933 $9,000 $10,034 $36,339
Europe/Middle East/Africa 3,005 3,170 3,316 3,539 13,030 3,228 3,381 3,421 3,996 14,025
Asia Pacific 1,607 1,704 1,694 1,803 6,809 1,707 1,745 1,709 1,873 7,035
Total revenues $12,453 $12,941 $13,280 $14,287 $52,961 $13,307 $14,059 $14,130 $15,903 $57,399
(1) The sum of the quarterly information presented may vary from the year-to-date information presented due to rounding.
(2) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for
assessing how our underlying businesses performed
excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United
States dollars are converted into United States dollars at the
exchange rates in effect on May 31, 2024 and 2023 for the fiscal 2025 and fiscal 2024 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in
effect during the respective periods.
APPENDIX A
ORACLE CORPORATION
Q4 FISCAL 2025 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES
To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:
-- Stock-based compensation expenses: We have excluded the effect of
stock-based compensation expenses from our non-GAAP operating expenses,
income tax effects and net income measures. Although stock-based
compensation is a key incentive offered to our employees, and we believe
such compensation contributed to the revenues earned during the periods
presented and also believe it will contribute to the generation of
future period revenues, we continue to evaluate our business performance
excluding stock-based compensation expenses. Stock-based compensation
expenses will recur in future periods.
-- Amortization of intangible assets: We have excluded the effect of
amortization of intangible assets from our non-GAAP operating expenses,
income tax effects and net income measures. Amortization of intangible
assets is inconsistent in amount and frequency and is significantly
affected by the timing and size of our acquisitions. Investors should
note that the use of intangible assets contributed to our revenues
earned during the periods presented and will contribute to our future
period revenues as well. Amortization of intangible assets will recur in
future periods.
-- Acquisition related and other expenses; and restructuring expenses: We
have excluded the effect of acquisition related and other expenses and
the effect of restructuring expenses from our non-GAAP operating
expenses, income tax effects and net income measures. We incurred
expenses in connection with our acquisitions and also incurred certain
other operating expenses or income, which we generally would not have
otherwise incurred in the periods presented as a part of our continuing
operations. Acquisition related and other expenses consisted of
personnel related costs for transitional and certain other employees,
certain business combination adjustments including certain adjustments
after the measurement period has ended, and certain other operating
items, net. Restructuring expenses consisted of employee severance and
other exit costs. We believe it is useful for investors to understand
the effects of these items on our total operating expenses. Although
acquisition related and other expenses and restructuring expenses may
diminish over time with respect to past acquisitions and/or strategic
initiatives, we generally will incur certain of these expenses in
connection with any future acquisitions and/or strategic initiatives.
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SOURCE Oracle
