Oracle Corporation (NYSE: ORCL) today announced results for the third fiscal quarter of 2025. Total Remaining Performance Obligations increased 62% year over year in US dollars and 63% in constant currency, to $130 billion. Total quarterly revenues increased 6% from the previous year in US dollars and 8% in constant currency, to $14.1 billion. Cloud services and license support revenues increased 10% from the previous year in US dollars and 12% in constant currency, to $11.0 billion. Cloud license and on-premise license revenues decreased 10% in US dollars and 8% in constant currency, to $1.1 billion.
GAAP operating profit for the third quarter was $4.4 billion. Non-GAAP operating profit 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 in 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 $9.0 billion. Over the last twelve months, operating cash flow was $20.7 billion and free cash flow was $5.8 billion.
“Oracle signed sales contracts totaling over $48 billion in the third quarter,” said Oracle CEO Safra Catz. “This record-breaking sales figure increased our Remaining Performance Obligations (RPO) by 63%, to over $130 billion. We have already signed cloud contracts with several leading global technology companies, including OpenAI, xAI, Meta, NVIDIA, and AMD. We expect our massive $130 billion sales pipeline 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 growing rapidly, as we look forward to signing our first contract with Stargate—another major opportunity for Oracle to expand its AI training and inference businesses 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 increased 92% in just the last three months. GPU consumption for AI training grew 244% over the last 12 months. And we are seeing tremendous demand for AI inference on our customers’ private data. That’s why we are connecting OpenAI ChatGPT, xAI Grok, and Meta Llama directly to the vector-enabled Oracle Database 23ai. 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 their private data—while keeping all their private data 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 largest shareholder of Oracle, did not participate in the deliberation or voting on this matter. This dividend increase will be paid to shareholders of record as of the close of business on April 10, 2025, with a payment date of April 23, 2025.
- A sample of customers who purchased Oracle Cloud services during the quarter will be available atoracle.com/customers/earnings/.
- A list of technical innovations and recent announcements is available atoracle.com/news/.
- To see what industry analysts are saying about Oracle’s products and services, visitoracle.com/corporate/analyst-reports/.
