ORACLE Corporation has released its financial results for the first quarter of fiscal 2025, showcasing solid growth across key segments. The company reported total revenues of $13.3 billion, representing a 7 percent year-over-year (YoY) increase in USD and an 8 percent rise in constant currency.
Cloud services continued to be a major driver, with revenues reaching $5.6 billion, up 21 percent YoY in USD and 22 percent in constant currency. Additionally, cloud license and on-premise license revenues climbed 7 percent in USD and 8 percent in constant currency, totaling $870 million.
Oracle’s operating performance also demonstrated strength. GAAP operating income stood at $4.0 billion, while non-GAAP operating income rose to $5.7 billion, marking a 13 percent increase in USD and a 14 percent rise in constant currency. The GAAP operating margin was reported at 30 percent, while the non-GAAP operating margin reached 43 percent. Oracle’s GAAP net income for the quarter was $2.9 billion, while non-GAAP net income came in at $4.0 billion, reflecting an 18 percent increase in USD and a 19 percent increase in constant currency. Earnings per share (EPS) saw notable growth, with GAAP EPS rising 20 percent YoY in USD (22 percent in constant currency) to $1.03, and non-GAAP EPS increasing 17 percent YoY in USD (18 percent in constant currency) to $1.39.
The company also highlighted strong deferred revenues, reporting $11.5 billion in short-term deferred revenues. Over the past twelve months, Oracle generated $19.1 billion in operating cash flow and $11.3 billion in free cash flow.
Oracle CEO Safra Catz attributed the company’s growth to its expanding cloud services business. “As Cloud Services became Oracle’s largest business, both our operating income and earnings per share growth accelerated,” Catz said.
She also pointed to the company’s robust contract backlog, which reached a record $99 billion, up 53 percent YoY. This backlog is expected to further drive revenue growth throughout fiscal 2025.
Catz emphasized the significance of a newly signed MultiCloud agreement with Amazon Web Services (AWS), which will provide AWS customers with access to Oracle’s Exadata hardware and Version 23ai of its database software. The service is set to go live in December 2024.
Oracle Chairman and Chief Technology Officer Larry Ellison highlighted the company’s expanding cloud infrastructure. Oracle now operates 162 cloud datacenters globally, with more under construction. Ellison noted that the largest of these datacenters, at 800 megawatts, will host NVIDIA GPU clusters for large-scale AI model training.
He also revealed that 42 additional cloud GPU contracts, valued at $3 billion, were signed in Q1. Ellison cited the increasing growth rate of Oracle’s database business, driven by its MultiCloud agreements with AWS, Microsoft, and Google. He mentioned that Oracle Cloud regions are live at seven Microsoft datacenters, with 24 more in development, and four regions are live at Google, with 14 more planned.
In addition, Oracle’s board of directors declared a quarterly cash dividend of $0.40 per share. This dividend will be payable on October 24, 2024, to stockholders of record as of October 10, 2024.
Oracle’s first-quarter results underscore its growing influence in the cloud services sector and its strong positioning in the emerging MultiCloud era.
