Oracle Corporation recorded a quarterly profit growth of 9%; however, the company missed earnings expectations and provided cautious guidance for 2025.
The company’s shares experienced a slight dip of nearly 8% in today’s pre-market trading following the announcement.
Oracle’s fiscal 2025 Q2 highlights are:
Total quarterly revenues were up 9% year-over-year, in both USD and constant currency, to $14.1 billion.
Cloud services and license support revenues were up 12% year-over-year, in both USD and constant currency, to $10.8 billion.
Cloud license and on-premise license revenues were up 1% in USD and up 3% in constant currency, to $1.2 billion.
Oracle’s cloud services, driven by AI demand, grew 12% in the last quarter, making up 77% of revenue.
“Record level AI demand drove Oracle Cloud Infrastructure revenue up 52% in Q2, a much higher growth rate than any of our hyperscale cloud infrastructure competitors,” said Oracle CEO, Safra Catz. “Growth in the AI segment of our Infrastructure business was extraordinary… With our remaining performance obligation (RPO) up 50% to $97 billion, we believe our already impressive growth rates will continue to climb even higher. This fiscal year, total Oracle Cloud revenue should top $25 billion.”
Chairman and CTO, Larry Ellison stated, “We just signed an agreement with Meta—for them to use Oracle’s AI Cloud Infrastructure—and collaborate with Oracle on the development of AI Agents based on Meta’s Llama models. The Oracle Cloud trains dozens of specialized AI models and embeds hundreds of AI Agents in cloud applications…Oracle-trained AI models and AI Agents will improve the rate of scientific discovery, economic development and corporate growth throughout the world. The scale of the opportunity is unimaginable.”
Oracle’s stock has experienced an 80% surge this year, boosting its market value to over $500 billion.
By CEO NA Editorial Staff
