Oracle Corporation (NYSE: ORCL) today announced its fiscal third quarter 2025 results. Total Remaining Performance Obligations increased 62% year-over-year in U.S. dollars and 63% in constant currency to $130 billion. Total quarterly revenues increased 6% year-over-year in U.S. dollars and 8% in constant currency to $14.1 billion. Cloud services and license support revenues increased 10% year-over-year in U.S. dollars and 12% in constant currency to $11.0 billion. Cloud and on-premise license revenues decreased 10% in dollars and 8% in constant currency to $1.1 billion.
Third-quarter GAAP operating income was $4.4 billion. Non-GAAP operating income was $6.2 billion, up 7% in US dollars and 9% in constant currency. GAAP operating margin was 31%, and non-GAAP operating margin was 44%. GAAP net income was $2.9 billion, up 22% in US dollars and 27% in constant currency. Non-GAAP net income was $4.2 billion, up 6% in US dollars and 9% in constant currency. GAAP earnings per share for the third quarter were $1.02, up 20% in US dollars and 25% in constant currency, while non-GAAP earnings per share were $1.47, up 4% in US dollars and 7% in constant currency.
Short-term deferred revenues were US$9.0 billion. Over the last twelve months, operating cash flow was US$20.7 billion and free cash flow was US$5.8 billion.
“Oracle signed sales contracts worth more than $48 billion in the third quarter,” said Oracle CEO Safra Catz. “This record number of sales increased our Remaining Performance Obligations (RPOs) by 63% to more than $130 billion. We have already signed cloud contracts with several world-leading technology companies, including OpenAI, xAI, Meta, NVIDIA, and AMD. We expect our massive $130 billion sales backlog to help drive a 15% increase in Oracle’s overall revenue in our next fiscal year, which begins in June. And we expect RPO to continue to grow rapidly as we look forward to signing our first contract with Stargate – another great opportunity for Oracle to expand its AI training and inference business in the near future.”
“We are on schedule to double our data center capacity this year,” said Oracle founder and CTO Larry Ellison. “Customer demand is at record levels. Our MultiCloud database revenue from Microsoft, Google, and Amazon has increased 92% in just the last three months. GPU consumption for AI training has grown 244% in the last 12 months. And we are seeing tremendous demand for AI inference on our customers’ private data. That’s why we’re connecting OpenAI ChatGPT, xAI Grok, and Meta Llama directly to Oracle Database version 23ai with advanced vector capabilities. This new product, called Oracle AI Data Platform, makes it easier for customers to use any of the world’s leading AI models to analyze all of their private data – while keeping all of their data private and secure.”
Oracle also announced that its Board of Directors declared a quarterly cash dividend of $0.50 per outstanding common share, reflecting a 25% increase from the current quarterly dividend of $0.40. Larry Ellison, Chairman of the Board, Chief Technology Officer and Oracle's largest shareholder, did not participate in the deliberation or voting on this matter. This dividend increase will be paid to shareholders of record at the close of business on April 10, 2025, with a payment date of April 23, 2025.
- A sample list of customers who purchased Oracle Cloud services during the quarter will be available at oracle.com/customers/earnings/ .
- A list of recent technical innovations and announcements is available at oracle.com/news/ .
- To find out what industry analysts have been saying about Oracle's products and services, visit oracle.com/corporate/analyst-reports/ .
