ORCL · Q1 2025 Earnings

Bullish

Oracle Corporation

Reported June 11, 2025

30-second summary

30-second take: Q4 revenue rose 11% YoY to $15.9B with non-GAAP EPS of $1.70 and OCI growth of 52%, but the actual story is forward: management guided total cloud growth to accelerate from 24% in FY25 to over 40% in FY26, OCI from 50% to over 70%, and RPO to more than double off a base that already grew 41% to $138B. If those numbers hold, Oracle is in the middle of the steepest growth re-acceleration of any megacap infrastructure vendor.

Headline numbers

EPS

Q1 FY2025

$1.70

Revenue

Q1 FY2025

$15.90B

+11.0% YoY

Operating margin

Q1 FY2025

44.2%

Key financials

Q1 FY2025

Metric	Q1 FY2025	YoY
Revenue	$15.90B	+11.0%
EPS	$1.70	—
Operating margin	44.2%	—

Guidance

Prior quarter data unavailable — comparison not possible.

Segment performance

Q1 FY2025

Segment	Q1 FY2025	YoY
Cloud services and license support	$11.7B	+14.0%
Cloud license and on-premise license	$2B	+9.0%
Hardware	$0.85B	+1.0%
Services	$1.35B	-2.0%
Cloud Infrastructure (IaaS)	$3B	+52.0%
Cloud Application (SaaS)	$3.7B	+12.0%

Platform metrics

Q1 FY2025

Segment	Q1 FY2025
Remaining Performance Obligations (RPO)	$138 billion, up 41%
Cloud Revenue (IaaS + SaaS) Growth	27%
Cloud Infrastructure Consumption Revenue Growth	62%
MultiCloud Database Revenue Growth Q3 to Q4	115%
Oracle Cloud@Customer Revenue Growth	104% YoY
Short-term Deferred Revenues	$9.4 billion

Profitability

Q1 FY2025

Segment	Q1 FY2025
Operating Margin (non-GAAP)	44.2%
Operating Cash Flow	$20.8 billion, up 12% YoY

Other KPIs

Q1 FY2025

Segment	Q1 FY2025	YoY
Americas	$10B	+12.2%
Europe/Middle East/Africa	$4B	+13.0%

Management tone

No transcript was available for this print; the brief is sourced from the press release only. Tone analysis across quarters will begin once transcript coverage is established next quarter. What the written commentary makes plain: Larry Ellison and Safra Catz are framing FY26 not as continued growth but as a step-function — "revenue growth rates will be dramatically higher," "OCI revenue growth rates are skyrocketing," Oracle becoming "one of the world's largest cloud infrastructure companies." That register is more declarative than Oracle's historical guidance language.

What to watch into next quarter

Q1 FY26 OCI growth rate — to hit "over 70%" for the full year off a 50% FY25 base, OCI needs to be running well above 70% by Q2; watch whether Q1 prints north of 55% or the FY26 guide starts to look back-half-loaded.

RPO sequential build — RPO at $138B grew 41% YoY this quarter; "more than 100%" FY26 growth implies RPO above $275B by next May. Q1 RPO needs to show a step-up well beyond seasonal pattern, or the bookings cadence implied by the guide is not on track.

Capex disclosure — the FY25 free cash flow figure of -$0.39B against $20.8B operating cash flow implies roughly $21B of capex; FY26 capex required to support 70%+ OCI growth will likely be materially higher. Watch the FY26 capex framing on the Q1 call.

MultiCloud database revenue dollars — Oracle disclosed +115% QoQ growth and partnerships with all three hyperscalers, but has not disclosed an absolute dollar figure. First explicit dollar disclosure will reset how the Street models the partnership contribution.

Services segment — -2% YoY is small but the only declining line; whether it stabilizes or accelerates downward signals customer self-implementation maturity.

Sources

Oracle Q4 FY2025 press release (filed 2025-06-11): https://www.sec.gov/Archives/edgar/data/1341439/000095017025084831/orcl-ex99_1.htm

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