Overview of Oracle Corporation’s Earnings Summary
Oracle Corporation’s (NYSE: ORCL) stock surged to $215 per share on June 13, 2025, marking a 22% Yo-Yo for the year. This breakthrough was driven by strong performance in cloud services, license support, and the company’s remaining performance obligation (RPO), which surged by 41% to $138 billion. The financial surprises for the quarter were partially offset by solid revenue and flat license support growth, though the company’s Q4 2025 results were all-time highs at $15.9 billion revenue and $17.3 billion Adjusted Net Income, with an Operating Margin of 44%.
The RPO, a critical metric for Oracle, indicated 80% growth compared to last year, reflecting a robust demand for its offerings. Cloud services revenue, a large component of this, saw a 27% Yo-Yo, driven by infrastructure and applications. Infrastructure revenue, often referred to as RPO, reached the highest in the company’s history, up 80% Yo-Yo, while applications revenue improved by 12% as the SaaS market expanded. License support revenue was perhaps flat, but cloud license and on-premise license revenues topped at $2.0 billion on a Yo-Yo of $1.9 billion. Non-GAAP Adjusted Earnings stood at $1.70 per share, while GAAP Earnings at $1.19 per share, reflecting strong fundamentals with lower operating income margins.
For the fiscal year, Oracle achieve virtually 80% Yo-Yo or better in cloud services revenue, with licenses growing 24%. On-premise revenue improved only slightly to $5.2 billion. Non-GAAP Adjusted Earnings stood at $25 billion, with operating margins falling slightly to 44%, indicating cautious margins with increased revenue.印这里，公司首次 exceeded $20 billion of cloud services, a notable achievement given their late-entry status.
Oracle’s capital expenditure for the quarter was $9.1 billion, fueled by the expectation for further growth. For Q4, the company’s revenue growth rate stood at 11-13% in constant currency terms, driven by strong cloud services and some local on-premise sales. The cloud on-premise segment delivered a solid 52% Yo-Yo growth, which is particularly significant given Oracle’s loyal onboarding of 50% of its customers. CEO Safra Catz also highlighted the potential for greater growth in 2026, with cloud 2026 forecasted to hit the upper range of 127% Yo-Yo.
The company is positioned to define itself as the cloud leader, even as Oracle was once a purely database provider. The CEO emphasized the need to reverse thepha surge of cloud adoption and cloud-native projects, such as OpenAI’s Stargate, which they claim will provide a significant upside. Oracle also became a leader in expansion, especially with plans to build approximately 47 more data centers by the end of the year, potentially doubling its capital expenditure.
Key Takeaways:
Oracle’s significant Yo-Yo in cloud services, strong growth in RPO, and projected 2026 cloud expansion are driving optimism. The company is poised to become the cloud leader, pending a reversal in the growth surge from the Stargate project and ambitious business with e-commerce, AI, and data center expansion. Oracle’s future growth is optimistic, with a tallied record of strong cloud adoption and strong cloud НаSure/domain in the coming years.
