Oracle reports $14.1bn in Q3 FY2025 revenue, with Cloud Sales up 23% YoY

Overview

Oracle Corporate Communications posted solid financial results for Q3 fiscal 2025, driven by strong cloud adoption and enterprise AI demand. Total revenue grew 6% YoY in USD to $14.1bn, with cloud revenue (IaaS + SaaS) up 23% YoY. Cloud infrastructure (IaaS) revenue surged 49% YoY, while cloud application (SaaS) revenue increased 9% YoY to. Oracle’s Remaining Performance Obligations (RPO) hit a record $130bn, growing 62% YoY.

CEO Safra Catz highlighted the company’s growth momentum: “Oracle signed sales contracts for more than $48 billion in Q3. We have now signed cloud agreements with several world leading technology companies including: OpenAI, xAI, Meta, NVIDIA and AMD. We expect that our huge $130 billion sales backlog will help drive a 15% increase in Oracle’s overall revenue in our next fiscal year beginning this June. And we expect RPO to continue to grow rapidly—as we look forward to signing our first Stargate contract—yet another big opportunity for Oracle to expand both its AI training and AI inferencing businesses in the near future”

Key financial highlights for Q3 FY2025:

Total revenue rose to $14.1bn (+6% YoY), with Cloud Infrastructure revenue (IaaS) of $2.7bn (+49% YoY), Cloud Applications revenue (SaaS) of $3.6bn (+9% YoY), Fusion Cloud ERP revenue (SaaS) of $0.9bn (+16% YoY) and NetSuite Cloud ERP revenue (SaaS) of $0.9bn (+16% YoY).
- MultiCloud database revenue (Microsoft, Google, AWS) surged 92% in the last three months.
GAAP operating income recorded a value of $4.4bn (+16% YoY), with a 31% operating margin, while Non-GAAP operating income increased to $6.2bn (+7% YoY), with a 44% margin.
Total operating expenses increased slightly to a value of $9.8bn (+3% YoY), with cloud services and license support expenses which increased 18% YoY.
GAAP net income was also on an upward trend, recording the value of $2.9bn (+22% YoY), while Non-GAAP net income surged to $4.2bn (+6% YoY).
In the same way, GAAP EPS was $1.02 (+20% YoY), while Non-GAAP EPS was $1.47 (+4% YoY).
GAAP operating cash flow increased to $20.7bn (+2% YoY).
Free cash flow declined to $5.8bn (-53% YoY), but maintaining a strong liquidity.
The company signed $48bn in new cloud contracts, contributing to $130bn in RPO.
GPU consumption for AI training grew 244% YoY, reflecting increasing enterprise AI adoption.
The company also raised quarterly dividend 25% to $0.50 per share, payable April 23, 2025.

Oracle Chairman and CTO, Larry Ellison, said: “We are on schedule to double our data center capacity this calendar year. We are seeing enormous demand for AI inferencing on our customers’ private data. So, we are connecting OpenAI ChatGPT, xAI Grok and Meta Llama directly to Version 23ai of the Oracle Database with advanced vector capabilities. This new product, called the Oracle AI Data Platform, makes it easy for customers to use any of the world’s leading AI models to analyze all of their private data—while keeping all their data private and secure.”

The publication of the results brought significant movements on the market, with the stock price of ORCL shares first experiencing a slight increase in after-hours transactions, after which, shortly after, it decreased more strongly, reaching at the time of writing this article a decrease of over -3% compared to the closing price of Monday, March 10. Thus, the downward trend of the recent period remains active in the case of this company, in a period in which large American companies are continuously losing market capitalization, following the increasing uncertainties regarding the country’s economy. Over the last 3 months, ORCL shares have lost approximately -24.5% of their stock price, although compared to the last year, they are trading at a price almost +28% higher than the same period of the previous year.