Oracle has reported a stronger-than-expected performance for its fiscal fourth quarter, driven by increasing demand for cloud services. Following the announcement, the firm’s shares rose approximately 8% in after-hours trading.
For the quarter that ended on 31 May 2025, Oracle’s revenue reached $15.9bn, marking an 11% increase from $14.3bn recorded in the same period last year. The figure exceeded analysts’ expectations, which averaged $15.59bn, Reuters reported citing LSEG data.
The primary contributor to this growth was the company’s cloud services and license support revenues, which climbed 14% year-over-year (Y-o-Y) to $11.7bn. Cloud license and on-premise license revenues rose by 9% to $2bn in the fourth quarter, compared to $1.84bn in the same period previous fiscal.
Meanwhile, Oracle’s hardware business reported revenue of $850m, showing little change from the $842m recorded in the previous year. The services segment, however, experienced a 2% decline in Y-o-Y quarterly revenue, totalling $1.39bn.
The US-based computer technology company’s GAAP operating income for the quarter was $5.1bn and GAAP net income of $3.4bn, both reflecting a 9% Y-o-Y growth. In Q4 FY25, GAAP earnings per share were $1.19 and non-GAAP earnings per share were $1.70.
Oracle eyes more than 70% cloud infrastructure growth in FY26
Oracle’s revenues for the entire fiscal year 2025 totalled $57.4bn, up 8% from $52.9bn in the preceding fiscal year. Cloud services and license support revenues saw a 12% rise, reaching $44bn. Cloud license and on-premise license revenues grew by 2% to $5.2bn.
Oracle’s fiscal year 2025 GAAP operating income was $17.7bn, and GAAP net income amounted to $12.4bn, increasing by 15% and 19% Y-o-Y, respectively.
“FY25 was a very good year—but we believe FY26 will be even better as our revenue growth rates will be dramatically higher,” said Oracle CEO Safra Catz. “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.”
This comes as Oracle is increasingly positioning itself as a cloud service provider, and aims to become one of the largest cloud infrastructure companies in the world. “We currently have 23 MultiCloud datacentres live with 47 more being built over the next 12 months,” said Oracle chairman and CTO Larry Ellison. “We expect triple-digit MultiCloud revenue growth to continue in FY26.”
In April, Oracle confirmed that a hacker had accessed and leaked credentials from two outdated servers. However, the company emphasised that its Oracle Cloud servers were not impacted and assured that customer data and cloud services remained secure.
Read more: Oracle projects significant growth amid AI cloud expansion
