Oracle Corporation (NYSE: ORCL) announced today the results of the fiscal third quarter of 2025. 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 license and on-premise license revenues declined 10% in U.S. 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, 7% higher in U.S. 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, an increase of 22% in U.S. dollars and 27% in constant currency. Non-GAAP net income was $4.2 billion, an increase of 6% in U.S. dollars and 9% in constant currency. GAAP earnings per share in the third quarter were $1.02, 20% higher in U.S. dollars and 25% higher in constant currency, while non-GAAP earnings per share were $1.47, 4% higher in U.S. dollars and 7% higher 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 has signed sales contracts of 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 $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 sales portfolio of $130 billion to help drive a 15% increase in Oracle’s overall revenue in our next fiscal year, starting in June. And we expect the RPO to continue to grow rapidly as we look forward to signing our first contract with Stargate – another significant opportunity for Oracle to expand its AI training and inference business in the near future.”
“We are on track 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 has increased by 92% in just the last three months. GPU consumption for AI training has grown by 244% in the last 12 months. And we are seeing a 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 the 23ai version of the Oracle Database with advanced vector features. This new product, called Oracle AI Data Platform, makes it easier for customers to use any of the world’s top AI models to analyze all of their private data – keeping all their data private and secure.”
The Oracle also announced that its Board of Directors declared a quarterly cash dividend of $0.50 per outstanding share, reflecting a 25% increase over 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 list of customers who have purchased Oracle Cloud services during the quarter will be available on 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/.
