Summary
Oracle Corporation reported a solid performance for the quarter ended August 31, 2025, with total revenues growing 12% year-over-year to $14.9 billion. This growth was primarily driven by a strong 13% increase in Cloud and Software revenues, which now represent 86% of total revenue. The company also saw a notable 7% increase in Services revenue, while Hardware revenue experienced a more modest 2% growth. Operating income rose by 7% to $4.3 billion, reflecting disciplined expense management despite increased investments in cloud infrastructure and R&D. Key financial strengths include a substantial increase in net cash provided by operating activities, reaching $8.1 billion, underscoring the company's operational efficiency. However, significant capital expenditures, particularly in cloud infrastructure, led to a substantial increase in net cash used for investing activities. The company also continues to manage its debt obligations and return capital to shareholders through dividends and share repurchases, with $6.3 billion remaining on its share repurchase authorization. Oracle's robust deferred revenue balance of $13.4 billion further indicates strong future revenue potential.
Financial Highlights
54 data points| Revenue | $14.93B |
| R&D Expenses | $2.49B |
| Operating Expenses | $10.65B |
| Operating Income | $4.28B |
| Interest Expense | $923.00M |
| Net Income | $2.93B |
| EPS (Basic) | $1.04 |
| EPS (Diluted) | $1.01 |
| Shares Outstanding (Basic) | 2.83B |
| Shares Outstanding (Diluted) | 2.91B |
Key Highlights
- 1Total revenues increased by 12% to $14.9 billion for the three months ended August 31, 2025, compared to the prior year period.
- 2Cloud and Software revenue, the largest segment, grew 13% to $12.9 billion, now comprising 86% of total revenue.
- 3Operating income increased by 7% to $4.3 billion, indicating a healthy operational performance.
- 4Net cash provided by operating activities surged by 10% to $8.1 billion, demonstrating strong cash generation from core operations.
- 5The company initiated a significant restructuring plan (2026 Restructuring Plan) with estimated costs up to $1.6 billion, impacting current quarter expenses.
- 6Deferred revenues increased to $13.4 billion as of August 31, 2025, highlighting substantial future revenue potential.
- 7Capital expenditures significantly increased to $8.5 billion for the quarter, largely to support cloud business growth.