Oracle (ORCL) Q2 2025 earnings summary

Executive summary

• Q2 revenue rose 9% year-over-year to $14.1 billion, reaching the high end of guidance, with EPS exceeding expectations and strong growth in cloud services and license support, now 77% of total revenue and the fastest-growing segment.

• Net income for the quarter increased 26% year-over-year to $3.15 billion, with GAAP EPS at $1.10, up 24%.

• Cloud revenue is expected to exceed $25 billion for the fiscal year, supported by performance advantages, multi-cloud partnerships, and rapid SaaS and industry cloud adoption.

• Remaining performance obligations reached $97.3 billion, up 49% year-over-year, reflecting strong future demand.

• Operating cash flow over the last twelve months was $20.3 billion; free cash flow was $9.5 billion.

Financial highlights

• Cloud services and license support revenue grew 12% year-over-year to $10.8 billion for the quarter.

• Total cloud revenue (SaaS and IaaS) rose 24% to $5.9 billion; IaaS up 52%, SaaS up 10%.

• Hardware revenue declined 4% to $728 million; services revenue decreased 3% to $1.33 billion.

• Non-GAAP EPS was $1.47, up 10%; GAAP EPS was $1.10, up 24%.

• Operating income grew 10% with a 43% non-GAAP operating margin and 30% GAAP margin.

Outlook and guidance

• Fiscal 2025 total revenue expected to grow double digits; cloud infrastructure revenue to grow faster than last year’s 50%.

• Q3 total revenue guidance: 9–11% growth in constant currency, 7–9% in USD.

• Q3 cloud revenue guidance: 25–27% growth in constant currency, 23–25% in USD.

• Management expects total Oracle Cloud revenue to exceed $25 billion for the fiscal year.

• Guidance is subject to currency fluctuations, tax rates, and one-time tax events.