Oracle misses by $0.02, misses on revs; will guide on the call
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Reports Q4 (May) earnings of $1.63 per share, excluding non-recurring items, $0.02 worse than the FactSet Consensus of $1.65; revenues rose 3.3% year/year to $14.29 bln vs the $14.57 bln FactSet Consensus.
- Q4 Cloud Revenue (IaaS plus SaaS) $5.3 billion, up 20% in USD and constant currency.
- Q4 Cloud Infrastructure (IaaS) Revenue $2.0 billion, up 42% in USD and constant currency.
- Q4 Cloud Application (SaaS) Revenue $3.3 billion, up 10% in USD and constant currency.
- Q4 Fusion Cloud ERP (SaaS) Revenue $0.8 billion, up 14% in USD and constant currency.
- Q4 NetSuite Cloud ERP (SaaS) Revenue $0.8 billion, up 19% in USD and constant currency.
- Note: Oracle guides for the next quarter on the call, which starts at 5pm ET; be sure to monitor InPlay.
- "In Q3 and Q4, Oracle signed the largest sales contracts in our history—driven by enormous demand for training AI large language models in the Oracle Cloud," said Oracle CEO, Safra Catz. "These record level sales drove RPO up 44% to $98 billion. Throughout fiscal year 2025, I expect continued strong AI demand to push Oracle sales and RPO even higher—and result in double-digit revenue growth this fiscal year. I also expect that each successive quarter should grow faster than the previous quarter—as OCI capacity begins to catch up with demand. In Q4 alone, Oracle signed over 30 AI sales contracts totaling more than $12.5 billion—including one with Open AI to train ChatGPT in the Oracle Cloud."
- "Our multicloud cooperation with Microsoft expanded significantly in Q4, as we agreed to work together to support Open AI and ChatGPT—and 11 of the 23 OCI datacenters we are building inside Azure went live," said Oracle Chairman and CTO, Larry Ellison. "As this Azure/OCI cloud capacity becomes available to the large installed base of Microsoft and Oracle customers, it will turbocharge our cloud database growth. Now customers can run any and every version of the Oracle database—Autonomous, 23ai Vector DB, etc.— in both the Azure and the Oracle Clouds. As customers continue to choose and use multiple clouds, Hyperscalers like Microsoft and Google are responding by interconnecting their clouds. Oracle recently signed an agreement with Google to interconnect our clouds—and initially build 12 OCI datacenters inside the Google Cloud. We expect the Oracle database to be available within the Google Cloud in September this year."