Image: Oracle’s shares have broken out to new all-time highs.
By Brian Nelson, CFA
On June 11, Oracle (ORCL) reported better than expected fourth quarter fiscal 2025 results with revenue and non-GAAP earnings per share exceeding the consensus forecasts. Total revenue was up 11% in the quarter, while the company posted non-GAAP earnings per share of $1.70, up from $1.63 in last year’s quarter and better than the consensus forecast of $1.64. Non-GAAP operating income was $7.0 billion, up 5% in USD and up 4% in constant currency. Fourth quarter remaining performance obligations jumped 41%, to $138 billion. Operating cash flow was $20.8 billion during fiscal year 2025, up 12% in USD.
Management had the following to say about the results:
FY25 was a very good year—but we believe FY26 will be even better as our revenue growth rates will be dramatically higher. 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. 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.
MultiCloud database revenue from Amazon, Google and Azure grew 115% from Q3 to Q4. We currently have 23 MultiCloud datacenters live with 47 more being built over the next 12 months. We expect triple-digit MultiCloud revenue growth to continue in FY26. Revenue from Oracle Cloud@Customer datacenters grew 104% year-over-year. We have 29 Oracle Cloud@Customer dedicated datacenters live with another 30 being built in FY26. Overall Oracle Cloud Infrastructure consumption revenue grew 62% in Q4. We expect OCI consumption revenue to grow even faster in FY26. OCI revenue growth rates are skyrocketing—so is demand.
Oracle’s fiscal fourth quarter cloud revenue (IaaS plus SaaS) was $6.7 billion, up 27%. Fiscal fourth quarter cloud infrastructure (IaaS) revenue was $3.0 billion, up 52%, while cloud application (SaaS) revenue was $3.7 billion, up 12%. Fiscal fourth quarter Fusion Cloud ERP (Saas) revenue was $1.0 billion, up 22%, while fiscal fourth quarter Netsuite Cloud ERP (SaaS) revenue was $1.0 billion, up 18%. Oracle ended the quarter with $11.2 billion in cash and marketable securities and $92.6 billion in notes payable and other borrowings. Though free cash flow dipped into negative territory for fiscal 2025, we continue to like Oracle’s position to capitalize on demand. Shares yield 1.1% at the time of this writing.
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Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
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