ORCL · Q2 2025 Earnings

Bullish

Oracle Corporation

Reported September 9, 2025

30-second summary

30-second take: Oracle posted Q1 revenue of $14.93B (+12% YoY) and non-GAAP EPS of $1.47, but the print is entirely about the bookings shock: RPO jumped to $455B from $138B last quarter, up 359% YoY, on what management describes as multiple multi-billion-dollar customer signings. Ellison then layered on a five-year OCI revenue roadmap — $18B this year scaling to $144B by FY2030 — and OCI grew 55% to $3.35B with MultiCloud database revenue up 1,529%. The single number that should give pause: free cash flow was -$5.88B this quarter, the capex bill to support this backlog is becoming the central question.

Headline numbers

EPS

Q2 FY2025

$1.47

Revenue

Q2 FY2025

$14.93B

+12.0% YoY

Free cash flow

Q2 FY2025

$-5.88B

Operating margin

Q2 FY2025

29.0%

Key financials

Q2 FY2025

Metric	Q2 FY2025	YoY	Q1 FY2025	QoQ
Revenue	$14.93B	+12.0%	$15.90B	-6.1%
EPS	$1.47	—	$1.70	-13.5%
Operating margin	29.0%	—	44.2%	-1520bps
Free cash flow	$-5.88B	—	—	—

Guidance

Oracle raises OCI revenue to $18B (77% growth) with 5-year roadmap to $144B, but quietly lowers FY26 RPO growth expectations from 100%+ to $500B+ absolute, signaling margin constraints ahead.

Guidance is issued for both next quarter and the full year. Both may appear below.

New guidance

Metric	Period	Guide	YoY
Oracle Cloud Infrastructure revenue	FY 2025	grow 77% to $18 billion	—
Oracle Cloud Infrastructure revenue - 5-year forecast	FY 2025	$32 billion, $73 billion, $114 billion, and $144 billion over the subsequent four years	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
RPO growth	FY 2025	more than 100%	likely to exceed half-a-trillion dollars	Qualitative softening from 'more than 100%' to 'likely to exceed $500B'. Current RPO $455B suggests ~10-11% growth to $500B+ from current base, well below prior 100%+ guidance.	Lowered
OCI consumption revenue growth	FY 2025	faster than Q4 62% growth	Withdrawn — no replacement	—	Withdrawn

Reaffirmed unchanged this quarter: Total cloud growth rate (over 40%), Cloud Infrastructure growth rate (over 70%), MultiCloud revenue growth (grow substantially every quarter for several years)

Segment performance

Q2 FY2025

Segment	Q2 FY2025	YoY
Cloud	$7.186B	+28.0%
Cloud Applications (SaaS)	$3.839B	+11.0%
Cloud Infrastructure (IaaS)	$3.347B	+55.0%
Fusion Cloud ERP	$1B	+17.0%
NetSuite Cloud ERP	$1B	+16.0%
Software	$5.721B	-1.0%
Hardware	$0.67B	+2.0%
Services	$1.349B	+7.0%

Platform metrics

Q2 FY2025

Segment	Q2 FY2025
Remaining Performance Obligations (RPO)	$455 billion
RPO Year-over-Year Growth	359%
MultiCloud Database Revenue Growth	1,529%
Short-term Deferred Revenues	$12.1 billion

Profitability

Q2 FY2025

Segment	Q2 FY2025
Operating Cash Flow (LTM)	$21.5 billion
Non-GAAP Operating Margin	42%
Non-GAAP Operating Income Growth	9%

Other KPIs

Q2 FY2025

Segment	Q2 FY2025	YoY
Americas	$9.662B	+15.4%
Europe/Middle East/Africa	$3.481B	+7.8%
Asia Pacific	$1.783B	+4.4%
Quarterly Cash Dividend per Share	$0.50	—

Management tone

No transcript was available for this print. The press release commentary, however, sharpens the language from last quarter materially. Last quarter Ellison and Catz framed FY26 as a step-function with growth rates "skyrocketing"; this quarter Catz writes that Oracle signed four multi-billion-dollar contracts with three different customers in the quarter and expects "several additional multi-billion-dollar customers" with RPO crossing $500B. Ellison's framing has shifted from forward-looking confidence to a five-year revenue ladder — naming specific dollar targets ($32B, $73B, $114B, $144B) for FY27 through FY30 is the most explicit forward commitment Oracle has made in recent memory.

The notable absence: no commentary on capex or the -$5.88B free cash flow print. Building toward $144B of OCI revenue requires datacenter spend at a scale Oracle has not previously sustained, and the silence on funding is conspicuous.

Answers to last quarter's watch list

Q1 FY26 OCI growth rate — OCI grew 55% YoY in Q1, below the 70%+ trajectory implied by the FY26 guide. Management reaffirmed "over 70%" for the full year, meaning H2 OCI growth needs to step up materially. Status: Continue monitoring

RPO sequential build — RPO jumped to $455B from $138B, a $317B sequential build that vastly exceeds anything implied by the prior "more than 100%" FY26 guide. Last quarter's watch threshold of "$275B by next May" was cleared in a single quarter. Status: Resolved positively

Capex disclosure — Free cash flow of -$5.88B this quarter (vs. -$0.39B for all of FY25) implies a major capex step-up, but Oracle did not disclose the explicit capex number or FY26 capex framing in the press release. Status: Not resolved

MultiCloud database revenue dollars — Oracle disclosed MultiCloud database revenue grew 1,529% YoY but again did not provide an absolute dollar figure. The growth rate alone is more striking than a dollar disclosure, but the Street still cannot model the base. Status: Continue monitoring

Services segment — Services revenue grew +7% YoY vs. -2% last quarter, a clean reversal. The acceleration is consistent with implementation activity tied to the new mega-deals booked into RPO. Status: Resolved positively

What to watch into next quarter

Q2 FY26 OCI growth acceleration — at 55% in Q1, OCI needs to be running close to 70% by Q2 to make the "over 70%" FY26 guide credible without an extreme Q4 spike. A Q2 print below 60% effectively concedes the guide is back-half-loaded into Q4.

Explicit FY26 capex disclosure — Q1 FCF of -$5.88B annualizes to ~-$24B of negative free cash before any acceleration. The market needs an absolute capex number and a financing plan; expect this on the Q2 call or sooner.

Customer concentration in the RPO — Catz disclosed four multi-billion-dollar contracts with three customers in the quarter, meaning a meaningful portion of the $317B sequential RPO build sits in 3-4 names. Watch for 10-K disclosure of customer concentration percentages and any commentary on contract duration.

MultiCloud database absolute dollars — second quarter in a row Oracle disclosed only a growth rate. First dollar disclosure will reset partnership economics modeling for AWS/Azure/Google contributions.

OCI consumption growth re-disclosure — the metric was withdrawn this quarter; whether it returns next quarter or stays dark will signal whether management wants visibility into consumption-vs-bookings divergence.

Sources

Oracle Q1 FY2026 press release (filed 2025-09-09): https://www.sec.gov/Archives/edgar/data/1341439/000119312525199175/orcl-ex99_1.htm
Oracle Q4 FY2025 press release (prior quarter context, filed 2025-06-11)

Get the next brief, free.

We publish analyst-grade earnings briefs the same day or morning after every call — headline numbers, segment KPIs, Q&A highlights, and tone analysis. Free during beta.

This is not investment advice.