Oracle Surpasses Quarterly Estimates, Records 11% Rise in Revenue
Oracle surpassed Wall Street’s expectations for its FY 2025 fourth-quarter performance on Wednesday. Within hours, increased demand for its cloud services from businesses integrating AI caused its stock to rise 7%.
The company announced fourth-quarter earnings of $1.70 per share, excluding certain expenses like stock compensation. Revenue reached $15.9 billion, an 11% increase compared to the same period last year. These results exceeded expectations, as Wall Street had anticipated earnings of only $1.64 per share on revenues of $15.59 billion.
In fiscal year 2025, total revenues grew 8% to $57.4 billion. Cloud services and license support revenues increased by 12% to $44.0 billion. Cloud and on-premise license revenues rose by 2% to $5.2 billion.
“FY25 was a very good year, but we believe FY26 will be even better as our revenue growth rates will be dramatically higher. We expect our 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,” Oracle CEO, Safra Catz, said.
According to Oracle, in Q4 2024, total cloud revenue, including IaaS and SaaS, reached $6.7 billion—a 27% increase. Cloud Infrastructure (IaaS) revenue was recorded at $3.0 billion, up 52%, while Cloud Applications (SaaS) generated $3.7 billion, a 12% rise. Fusion Cloud ERP (SaaS) revenue also reached $1.0 billion, growing by 22%, and NetSuite Cloud ERP brought in $1.0 billion, an 18% increase.
Oracle has been launching AI assistants, advisors, and agents. Its AI Agent Studio, revealed in March, aims to assist customers and partners in creating their personalised AI agents.
“MultiCloud database revenue from Amazon, Google and Azure grew 115% from Q3 to Q4. We currently have 23 MultiCloud data centres live, with 47 more being built over the next 12 months. We expect triple-digit Multicloud revenue growth to continue in FY26,” Oracle chairman and CTO, Larry Ellison, said.
After forming partnerships with Microsoft Azure and Google Cloud, the company joined forces with AWS in early 2024 to introduce Oracle Database@AWS. AIMreported that this offering will enable customers to utilise Oracle Autonomous Database and Exadata Database Service in AWS data centres.
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