Oracle (ORCL) Q1 2025 earnings summary

Executive summary

• Q1 FY25 total revenue was $13.3B, up 8% year-over-year, with cloud revenue at $5.6B, up 22% year-over-year.

• Net income rose 21% to $2.93B, with GAAP EPS up 20% to $1.03 and non-GAAP EPS up 17% to $1.39.

• Cloud and license business accounted for 86% of total revenues, with cloud services revenues up 21%.

• Multi-cloud partnerships now include AWS, Azure, and Google Cloud, expanding database accessibility and expected to accelerate cloud migration.

• Remaining performance obligations surged 53% to $99B, indicating strong future revenue visibility.

Financial highlights

• Cloud services and license support revenue was $10.5B, up 11% year-over-year.

• Infrastructure subscription revenue rose 14% to $5.8B; cloud infrastructure services revenue up 46%.

• GAAP operating income reached $4.0B (30% margin); non-GAAP operating income $5.7B (43% margin).

• Operating cash flow for Q1 was $7.4B; free cash flow for the trailing four quarters was $11.3B.

• Hardware revenues declined 8% to $655M; services revenues decreased 9% to $1.26B.

Outlook and guidance

• FY25 total revenue expected to grow double digits; cloud infrastructure revenue to grow faster than last year.

• Q2 guidance: total revenue growth of 7%-9% constant currency (8%-10% in USD); cloud revenue growth of 23%-25% constant currency (24%-26% in USD).

• Non-GAAP EPS for Q2 expected between $1.42-$1.46 constant currency ($1.45-$1.49 in USD).

• FY25 CapEx expected to double versus FY24, reflecting strong demand and pipeline.

• MultiCloud strategy with AWS, Microsoft, and Google anticipated to accelerate database business growth.