Oracle crushes forecasts as surging AI cloud powers record growth.

Oracle Corporation has reported a significant financial upswing in its latest quarterly results, surpassing Wall Street expectations and signaling robust growth, particularly within its cloud and artificial intelligence (AI) divisions. The company announced total quarterly revenues of $15.9 billion, an 11% increase year-over-year.[1][2] Adjusted earnings per share reached $1.70, exceeding analyst forecasts of $1.64.[3][4][5] This strong performance underscores Oracle's successful strategic pivot towards cloud-based services and the increasing market demand for AI capabilities.

The company's financial disclosures for the fourth quarter of its fiscal year 2025 revealed broad strength across its portfolio.[1] Total revenues for the quarter climbed to $15.9 billion, up from $14.29 billion in the same period of the previous year, marking an 11.3% rise.[3][1] Cloud services and license support revenues were a significant contributor, increasing by 14% to $11.7 billion.[1] Even the more traditional cloud license and on-premise license segment saw an uplift, with revenues growing 9% (8% in constant currency) to $2.0 billion.[1] For the full fiscal year 2025, Oracle reported total revenues of $57.4 billion, an 8% increase.[1] Non-GAAP earnings per share for the fourth quarter stood at $1.70, a notable figure that beat market consensus.[1][5] GAAP earnings per share was $1.19.[1] A key indicator of future revenue, Remaining Performance Obligations (RPO), surged by 41% to $138 billion, demonstrating a strong pipeline of contracted services.[1][4]

Central to Oracle's impressive quarter is the accelerating growth of its cloud offerings, especially Oracle Cloud Infrastructure (OCI). OCI revenue saw a substantial jump of 52% year-over-year, reaching $3.0 billion for the quarter.[1][6] Overall cloud revenue, which combines Infrastructure as a Service (IaaS) and Software as a Service (SaaS), totaled $6.7 billion, up 27%.[1][7] This growth is significantly fueled by the immense demand for training AI large language models (LLMs) in the Oracle Cloud.[8] The company reported signing over 30 new AI sales contracts in a previous similar strong quarter (Q4 2024) totaling more than $12.5 billion, including a significant agreement with OpenAI to train ChatGPT in the Oracle Cloud.[8][9] This trend of substantial AI-driven deals continued into the reported fiscal 2025 Q4. Multi-cloud database revenue from partnerships with Amazon, Google, and Azure reportedly grew 115% from the third fiscal quarter to the fourth.[1][2] Oracle Chairman and CTO Larry Ellison highlighted that OCI consumption revenue grew 62% in Q4 and is expected to grow even faster in fiscal year 2026.[1]

The strong earnings report and optimistic outlook prompted a positive reaction in the market, with Oracle's shares experiencing a notable jump in after-hours trading following the announcement.[6][10] Company executives expressed strong confidence in continued growth, with CEO Safra Catz projecting that total cloud growth rates will exceed 40% in fiscal year 2026, driven by Cloud Infrastructure growth surpassing 70%.[3][1] Catz stated, "FY25 was a very good year—but we believe FY26 will be even better as our revenue growth rates will be dramatically higher."[1][6] This upbeat forecast is underpinned by expectations of continued strong AI demand pushing sales and RPO even higher.[8][9] Oracle is also making significant capital expenditures to meet this demand, with expectations to spend over $25 billion in CapEx in fiscal year 2026, primarily on equipment that generates revenue.[7] Adding to its growth strategy, Oracle announced significant new partnerships, including an expansion of its multi-cloud cooperation with Microsoft to support OpenAI and a new partnership with Google Cloud, enabling customers to combine OCI and Google Cloud technologies.[9][11][12][13] These collaborations aim to offer customers greater flexibility and performance, particularly for AI and enterprise workloads.[11][13] Larry Ellison noted Oracle’s ambition to be interconnected with all major cloud providers.[14][15]

Oracle's robust quarterly performance, driven by its rapidly expanding cloud infrastructure and AI services, positions the company as an increasingly formidable player in the competitive cloud market. The substantial growth in OCI and the influx of large AI-related contracts highlight a successful strategic execution that is resonating with enterprise customers. The company's significant RPO indicates a strong future revenue stream, and its ongoing investments in data center capacity and multi-cloud partnerships, including those with Google and Microsoft for OpenAI, suggest a clear strategy to capture a larger share of the burgeoning AI and cloud markets. As businesses worldwide continue to integrate AI into their operations, Oracle's focus on providing the underlying infrastructure and a comprehensive suite of cloud applications appears to be a potent formula for sustained growth, signaling its intent to be a leader in both cloud applications and infrastructure.[1][6]