ORCL · Q4 2025 Earnings

Bullish

Oracle Corporation

Reported June 11, 2025

30-second summary

30-second take: Q4 revenue grew 11% YoY to $15.9B with OCI consumption up 62% and RPO at $138B, but the real news is the FY26 guide: management is calling for total cloud growth to nearly double from 24% to "over 40%", Cloud Infrastructure to accelerate from 50% to "over 70%", and RPO to more than double. Either Oracle has line-of-sight into AI infrastructure demand that justifies the most aggressive cloud guide it has ever issued, or this is a credibility check the print sets up for next year.

Headline numbers

EPS

Q4 FY2025

$1.70

Revenue

Q4 FY2025

$15.90B

+11.0% YoY

Free cash flow

Q4 FY2025

$-0.39B

Operating margin

Q4 FY2025

32.1%

Key financials

Q4 FY2025

Metric	Q4 FY2025	YoY
Revenue	$15.90B	+11.0%
EPS	$1.70	—
Operating margin	32.1%	—
Free cash flow	$-0.39B	—

Guidance

Prior quarter data unavailable — comparison not possible.

Segment performance

Q4 FY2025

Segment	Q4 FY2025	YoY
Cloud services and license support	$11.698B	+14.0%
Cloud Infrastructure (IaaS)	$3B	+52.0%
Cloud Application (SaaS)	$3.7B	+12.0%
Fusion Cloud ERP	$1B	+22.0%
NetSuite Cloud ERP	$1B	+18.0%
Cloud license and on-premise license	$2.007B	+9.0%
Applications Cloud SaaS Revenue Growth	8%	—
Infrastructure Cloud IaaS Revenue Growth	19%	—

Platform metrics

Q4 FY2025

Segment	Q4 FY2025
Remaining Performance Obligations (RPO)	$138 billion
Cloud Total Revenue Growth	27%
Deferred Revenues (Short-term)	$9.4 billion
OCI Consumption Revenue Growth	62%
MultiCloud Database Revenue Growth (Q3 to Q4)	115%
Oracle Cloud@Customer Revenue Growth YoY	104%

Other KPIs

Q4 FY2025

Segment	Q4 FY2025	YoY
Americas	$10.034B	+12.2%
Europe/Middle East/Africa	$3.996B	+13.0%
Asia Pacific	$1.873B	+3.9%

Management tone

Transcript not available for this quarter; tone analysis is limited to the prepared written commentary in the press release.

From the press release, the dominant posture is a sharp escalation in confidence on the cloud trajectory. Safra Catz's framing — "FY25 was a very good year—but we believe FY26 will be even better as our revenue growth rates will be dramatically higher" — and Larry Ellison's "OCI revenue growth rates are skyrocketing—so is demand" are unusually emphatic for Oracle. The company is explicitly positioning itself as "one of the world's largest cloud infrastructure companies" alongside its applications franchise — a self-comparison that effectively invites benchmarking against the hyperscalers. This is a company committing publicly to growth-rate acceleration on top of an already-large base, which is the most credibility-exposing posture a CFO can take.

What to watch into next quarter

Q1 FY26 cloud growth rate trajectory: to hit "over 40%" for the full year off a 24% FY25 base, Oracle needs visible step-up in Q1. If Q1 total cloud prints below ~30% YoY, the FY26 guide is already at risk.

RPO conversion: RPO would need to roughly double from $138B to clear the "more than 100%" growth bar — meaning ending RPO above ~$276B by the end of FY26. Watch the Q1 RPO print; sequential growth needs to be material to stay on track, on top of the roughly $44B of cloud + license support revenue that will be recognized out of backlog during the year.

OCI capacity and capex: FY25 FCF was -$394M. Watch the capex line and any commentary on data-center capacity constraints; Oracle has previously cited capacity (not demand) as the bottleneck.

SaaS re-acceleration or further deceleration: Fusion ERP at +22% and NetSuite at +18% are healthy, but the broader Applications ecosystem line at +8% needs explanation. If SaaS continues to decelerate, the "world's largest cloud application company" framing weakens.

Margin trajectory during the build: Q4 operating margin 32.1% vs FY 30.8%. Whether margins hold or compress as OCI scales is the key earnings-quality question for FY26.

Sources

Oracle Corporation Q4 FY2025 press release (Form 8-K Exhibit 99.1), filed June 11, 2025. https://www.sec.gov/Archives/edgar/data/1341439/000095017025084831/orcl-ex99_1.htm

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