Oracle's Q2 earnings missed estimates but revenues increased year-over-year, driven by cloud business success.

From Nasdaq: 2024-12-10 06:41:00

Oracle reported second-quarter fiscal 2025 earnings of $1.47 per share, missing estimates but increasing 9.7% YoY. Revenues reached $14.1 billion, up 9% YoY, driven by Oracle Cloud Infrastructure. Despite this, stock fell 7% in after-hours trading. Expectations were high with stock up 80.6% YTD due to cloud business success.

Cloud services and license support revenues increased by 12%, totaling $10.8 billion. Total cloud revenues were up 24% at $5.9 billion. Oracle is expanding its cloud regions and experiencing growth in various segments, including AI, ERP, and infrastructure services. The company is seeing strong demand and revenue growth across its cloud offerings.

Oracle’s non-GAAP operating expenses rose 8% to $7.96 billion, with operating income at $6.09 billion, up 10% YoY. The company’s operating margin expanded to 43%. Cash and marketable securities stood at $11.3 billion as of Nov. 30, 2024. Operating and free cash flow were $20.2 billion and $9.54 billion, respectively.

For the second quarter of fiscal 2025, Oracle expects total revenues to grow by 9-11% in constant currency and 7-9% in USD. Cloud revenues are projected to increase by 25-27% in constant currency and 23-25% in USD. Non-GAAP EPS is expected to grow by 7-9% in constant currency. The company aims to reach $25 billion in cloud revenues for fiscal 2025.



Read more at Nasdaq: Oracle Q2 Earnings Miss Estimates, Revenues Increase Y/Y