01—Abstract
Summary
Summary of the 8-K filed June 11, 2025. Cited figures are marked; the original filing is the authoritative source.
Oracle reported fiscal Q4 2025 (quarter ended May 31, 2025) with total revenue of $15.9 billiona, up 11% in both USD and constant currency.
GAAP diluted EPS was $1.19b and non-GAAP diluted EPS was $1.70, while GAAP operating income of $5.1 billion rose 9% (non-GAAP operating income of $7.0 billion rose 5%). The headline growth driver was cloud: Cloud Infrastructure (IaaS) revenue grew 52% to $3.0 billion, and total cloud revenue (IaaS plus SaaS) grew 27% to $6.7 billion. Remaining performance obligations (RPO) rose 41% to $138 billion, a strong forward indicator of contracted demand.
For full fiscal year 2025, total revenue rose 8% to $57.4 billionc, GAAP net income was $12.4 billion, and operating cash flow was $20.8 billion, up 12%. The filing also highlights a significant cash-flow shift: capital expenditures reached $21.2 billion in FY25 versus $6.9 billion a year earlier, which pushed trailing free cash flow to negative $394 million in Q4. Long-term debt rose to roughly $85 billion non-current, funding the AI and datacenter buildout.
Management guided FY26 total cloud growth above 40%, OCI growth above 70%, and RPO growth above 100%, though these are forward-looking targets subject to the risks listed in the safe harbor statement. The board declared a quarterly dividend of $0.50d per share, payable July 24, 2025 to holders of record on July 10, 2025. Investors will be weighing the strength of the cloud acceleration and backlog against the sharply higher capital intensity, negative free cash flow, and rising leverage.
02—Key points
Key Highlights
- Q4 total revenue of $15.9B, up 11% YoY; cloud services and license support up 14% to $11.7B
- Cloud Infrastructure (IaaS) revenue up 52% to $3.0B; SaaS up 12% to $3.7B; total cloud up 27% to $6.7B
- Remaining performance obligations (RPO) up 41% to $138B, signaling strong contracted future revenue
- Q4 GAAP EPS $1.19 vs. non-GAAP EPS $1.70; GAAP operating margin 32% vs. 33% prior year
- FY25 capital expenditures of $21.2B (vs. $6.9B in FY24) drove trailing Q4 free cash flow to negative $394M
- Management guides FY26 total cloud growth above 40%, OCI growth above 70%, and RPO growth above 100%
- Quarterly dividend of $0.50 per share declared, payable July 24, 2025 (record date July 10, 2025)
03—Questions
Frequently Asked Questions
How strong was Oracle's cloud growth in the fourth quarter?
Cloud was the standout. Total cloud revenue (IaaS plus SaaS) rose 27% to $6.7 billion, with Cloud Infrastructure (IaaS) up 52% to $3.0 billion and SaaS up 12% to $3.7B. Management said OCI consumption revenue grew 62% in Q4.
What does the $138 billion in remaining performance obligations mean for investors?
RPO represents contracted future revenue not yet recognized. Its 41% increase to $138B suggests strong forward demand, particularly for AI and cloud infrastructure, though RPO is not a guarantee of revenue and depends on customer execution and datacenter capacity delivery.
Why did free cash flow turn negative?
Capital expenditures surged to $21.2B in FY25 from $6.9B in FY24, largely to build AI and cloud datacenter capacity. Although operating cash flow reached $20.8B, trailing Q4 free cash flow was negative $394M, and debt and capex needs are rising.
What are management's FY26 targets?
Management expects total cloud growth to exceed 40% in FY26 (up from 24% in FY25), Cloud Infrastructure growth above 70% (from 50%), and RPO growth above 100%. These are forward-looking statements subject to material risks, including datacenter capacity, execution, and economic conditions.
What is the dividend and when is it paid?
Oracle declared a quarterly cash dividend of $0.50 per share, payable July 24, 2025, to stockholders of record as of the close of business on July 10, 2025.
04—Continue