10-QPeriod: Q3 FY2025

ORACLE CORP Quarterly Report for Q3 Ended Feb 28, 2025

Filed March 11, 2025For Securities:ORCLORCL-PD

Summary

Oracle Corporation (ORCL) reported its fiscal third-quarter and nine-month results ending February 28, 2025. The company demonstrated strong revenue growth, primarily driven by its Cloud services and license support segment, which continues to be the main growth engine. Total revenues saw a solid increase, reflecting the ongoing shift towards cloud offerings. Operating income and net income also showed significant improvement, highlighting operational efficiency. The company's balance sheet remains robust with substantial cash and cash equivalents, although long-term debt has increased due to recent financings. Oracle continues to invest in its cloud infrastructure and R&D to support future growth, while also returning capital to shareholders through dividends and share repurchases.

Financial Highlights

54 data points
Beta

Revenue

$14.13B

Net Income

$2.94B

20.8% Net Margin

EPS (Diluted)

$1.02

Total Assets

$161.38B

Cash & Equivalents

$17.41B

Free Cash Flow

$71.00M

Financial Statements
Beta
Revenue$14.13B
R&D Expenses$2.43B
Operating Expenses$9.77B
Operating Income$4.36B
Interest Expense$892.00M
Net Income$2.94B
EPS (Basic)$1.05
EPS (Diluted)$1.02
Shares Outstanding (Basic)2.80B
Shares Outstanding (Diluted)2.87B

Key Highlights

  • 1Total revenues increased by 6% year-over-year to $14.13 billion for the third quarter, with Cloud services and license support revenues growing 10% to $11.01 billion.
  • 2Operating income grew 16% to $4.36 billion for the third quarter, indicating improved profitability.
  • 3Net income rose to $2.94 billion for the third quarter, a 22% increase year-over-year, with diluted EPS at $1.02.
  • 4The company generated $14.66 billion in net cash from operating activities for the nine months ended February 28, 2025.
  • 5Total assets increased to $161.38 billion, with a significant portion attributed to Goodwill and Property, Plant, and Equipment, reflecting strategic investments and acquisitions.
  • 6Long-term borrowings increased substantially to $88.11 billion, primarily due to the issuance of $14.0 billion in senior notes.
  • 7Remaining performance obligations (RPO) stood at a substantial $130.2 billion as of February 28, 2025, indicating strong future revenue potential.

Frequently Asked Questions

Oracle's revenue growth is primarily driven by its Cloud services and license support segment. This segment, which includes cloud services revenues and license support revenues, has shown consistent year-over-year increases, reflecting strong customer demand for Oracle's cloud-based applications and infrastructure technologies.

Oracle has significantly increased its long-term borrowings, with total non-current notes payable and other borrowings rising to $88.11 billion as of February 28, 2025, up from $76.26 billion at the end of the prior fiscal year. This increase is primarily due to the issuance of $14.0 billion in senior notes during the first nine months of fiscal 2025, used for various corporate purposes including debt repayment and general corporate needs.

Oracle has a substantial backlog of future revenue, with remaining performance obligations (RPO) totaling $130.2 billion as of February 28, 2025. The company expects to recognize approximately 31% of this RPO as revenue over the next twelve months, indicating a strong revenue pipeline.

Oracle maintains a strong liquidity position, with cash and cash equivalents, and marketable securities totaling $17.82 billion as of February 28, 2025. The company generated $14.66 billion in operating cash flow for the first nine months of the fiscal year. While capital expenditures have increased significantly, particularly for cloud infrastructure, the company expects its current cash, cash generated from operations, and borrowing arrangements to be sufficient for its needs.