EX-99.1 2 orcl-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

 

img17877081_0.jpg

For Immediate Release

 

 

 

 

 

Contact:

Ken Bond

Deborah Hellinger

 

Oracle Investor Relations

Oracle Corporate Communications

 

1.650.607.0349

1.212.508.7935

 

[email protected]

[email protected]

 

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 -- 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
Revenues

 

2024

 

 

% of
Revenues

 

(Decrease)
in US $

 

in Constant
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

 

1

 

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 (Decrease)
in US $

 

% Increase (Decrease) in
Constant Currency (2)

 

 

2025
GAAP

 

 

Adj.

 

 

2025
Non-GAAP

 

 

2024
GAAP

 

 

Adj.

 

 

2024
Non-GAAP

 

 

GAAP

 

Non-GAAP

 

GAAP

 

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 SHARES OUTSTANDING

 

 

2,871

 

 

 

—

 

 

 

2,871

 

 

 

2,834

 

 

 

—

 

 

 

2,834

 

 

1%

 

1%

 

1%

 

1%

 

(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
May 31, 2025

 

 

Three Months Ended
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

 

2

 

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
Revenues

 

2024

 

 

% of
Revenues

 

(Decrease)
in US $

 

in Constant
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

 

3

 

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 (Decrease)
in US $

 

% Increase (Decrease) in
Constant Currency (2)

 

 

2025
GAAP

 

 

Adj.

 

 

2025
Non-GAAP

 

 

2024
GAAP

 

 

Adj.

 

 

2024
Non-GAAP

 

 

GAAP

 

Non-GAAP

 

GAAP

 

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 SHARES OUTSTANDING

 

 

2,866

 

 

 

—

 

 

 

2,866

 

 

 

2,823

 

 

 

—

 

 

 

2,823

 

 

2%

 

2%

 

2%

 

2%

 

(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
May 31, 2025

 

 

Year Ended
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

 

4

 

ORACLE CORPORATION

FISCAL 2025 FINANCIAL RESULTS

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in millions)

 

 

 

May 31,
2025

 

 

May 31,
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

 

 

 

 

 

 

5

 

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

 

 

 

 

6

 

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.

7

 

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.

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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.

9