Oracle Corporation (NYSE: ORCL) announced today the results of the third fiscal quarter of 2025. The total remaining Performance Obligations increased by 62% year-over-year in US dollars and 63% in constant currency, to $130 billion. Total quarterly revenues increased by 6% year-over-year in US dollars and 8% in constant currency, reaching US$ 14.1 billion. Cloud services and license support revenues increased by 10% year-over-year in US dollars and 12% in constant currency, reaching $11.0 billion. Cloud and on-premises license revenues declined by 10% in 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, 7% higher in US dollars and 9% higher in constant currency. GAAP operating margin was 31%, and non-GAAP operating margin was 44%. GAAP net income was $2.9 billion, a 22% increase in US dollars and a 27% increase in constant currency. Non-GAAP net income was $4.2 billion, a 6% increase in US dollars and a 9% increase in constant currency. GAAP earnings per share in the third quarter were $1.02, 20% higher in US dollars and 25% higher in constant currency, while non-GAAP earnings per share were $1.47, 4% higher in US dollars and 7% higher in constant currency.
Short-term deferred revenues were $9.0 billion. In the last twelve months, the operating cash flow was $20.7 billion and the free cash flow was $5.8 billion.
"Oracle signed sales contracts worth over $48 billion in the third quarter," said Oracle CEO Safra Catz. This record sales number boosted our Remaining Performance Obligations (RPO) by 63%, to over US$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 US$130 billion sales pipeline to help drive a 15% increase in Oracle's overall revenue in our upcoming fiscal year, which begins in June. And we anticipate RPO to continue growing 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 the capacity of our data center 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 by 92% in just the last three months. GPU consumption for AI training grew by 244% over the past 12 months. And we are seeing huge demand for AI inference on our customers' private data. That’s why we are connecting OpenAI ChatGPT, xAI Grok, and Meta Llama directly to Oracle Database 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 their private data—while keeping all their data private and secure.
Oracle also announced that its Board of Directors declared a quarterly cash dividend of $0.50 per 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 the voting on this matter. This dividend increase will be paid to shareholders registered 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 atoracle.com/customers/earnings/.
- A list of recent technical innovations and announcements is available atoracle.com/news/.
- To learn what industry analysts are saying about Oracle products and services, visitoracle.com/corporate/analyst-reports/.
