From Nasdaq: 2025-06-12 10:41:00

Oracle stock surged over 7% in after-hours trading following the release of its fourth-quarter fiscal 2025 earnings, surpassing revenue and earnings estimates. The company raised its annual revenue growth forecast, citing strong demand for its cloud offerings, particularly from AI-focused startups. Revenues for the quarter reached $15.9 billion, with cloud services and license support revenues increasing by 14%.

Oracle’s cloud infrastructure business is rapidly expanding to cater to AI startups and cloud users. The company is aiming to compete with industry giants like Amazon Web Services, Google, and Microsoft. Despite a challenging market, Oracle’s stock has outperformed its sector this year. The company reported a 5.8% increase in share value, while Microsoft, Amazon, and Google saw declines.

In Q4, Oracle reported significant growth in various segments, including cloud services, strategic SaaS products, and cloud application revenues. The company’s infrastructure subscription revenues grew by 19%, and its software license revenues increased by 8%. Oracle’s strategic back-office SaaS applications now generate annualized revenues of $9.3 billion.

Oracle’s operating expenses rose by 16% in Q4, leading to a 5% increase in operating income. The company’s cash and cash equivalents stood at $11.2 billion, with operating cash flow at $20.8 billion. Despite a negative free cash flow of $394 million, Oracle remains optimistic about its financial performance.

For fiscal 2026, Oracle provided strong guidance, projecting a significant acceleration in total cloud revenues and total company revenues. The company expects total cloud revenues to grow by over 40% and total company revenues to reach at least $67 billion. Oracle anticipates robust growth in cloud infrastructure revenues and total cloud revenues, signaling confidence in its future performance.



Read more at Nasdaq: Oracle Stock Jumps on Q4 Earnings Beat, Upbeat Cloud Forecast