Oracle Beats Q4 Expectations, Forecasts Explosive Cloud Growth in FY26

By Ishika Dangayach - Jun 12, 2025, 06:24 AM ET

Oracle wraps up FY25 with strong earnings and record cloud momentum, projecting over 70% growth in cloud infrastructure and major investments ahead.

Oracle Corp. (NYSE: ORCL) reported fiscal fourth-q uarter net income of $3.43 billion, topping Wall Street expectations. On a per-share basis, the Austin, Texas-based company said it earned $1.19, or $1.70 per share when adjusted for one-time gains and costs. That exceeded the average estimate of $1.64 per share from 12 analysts surveyed by Zacks Investment Research.

The software maker posted Q4 revenue of $15.9 billion, surpassing the $15.54 billion projected by nine Zacks-surveyed analysts. Short-term deferred revenues totaled $9.4 billion, while operating cash flow for the full fiscal year hit $20.8 billion—up 12% in USD.

For the 2025 fiscal year, Oracle reported total revenues of $57.4 billion, an 8% increase in USD and 9% in constant currency.

Cloud services and license support revenues rose 12% to $44.0 billion, while cloud license and on-premise license revenues saw a modest 2% increase to $5.2 billion.

“FY25 was a very good year—but we believe FY26 will be even better as our revenue growth rates will be dramatically higher,” Oracle CEO Safra Catz said.

“We expect our total cloud growth rate—applications plus infrastructure—will increase from 24% in FY25 to over 40% in FY26. Cloud Infrastructure growth rate is expected to increase from 50% in FY25 to over 70% in FY26. And RPO is likely to grow more than 100% in FY26,” Catz added.

“Oracle is well on its way to being not only the world's largest cloud application company—but also one of the world's largest cloud infrastructure companies.”

In Q4, Oracle announced a partnership with Cleveland Clinic and G42, the United Arab Emirates’ artificial intelligence holding company, to deliver an AI platform for health care. The company also entered into cloud and consulting agreements with IBM.

In another major development, SoftBank said it would acquire Oracle-backed chip design startup Ampere for $6.5 billion.

Capital expenditures for fiscal year 2025 exceeded $21 billion, up from less than $7 billion in fiscal 2024. Catz said spending in the new fiscal year is expected to top $25 billion.