Oracle Reports Strong Q3 FY2025 Results with Record $130 Billion in Backlog

Oracle reported third-quarter fiscal 2025 results with total revenue reaching $14.1 billion, up 6% year-over-year in USD and 8% in constant currency. Cloud revenue rose 23% to $6.2 billion, driven by strong performance in both infrastructure (IaaS) and applications (SaaS). Remaining performance obligations (RPO) surged 62% to $130 billion, reflecting record sales contracts including major deals with OpenAI, Meta, NVIDIA, and AMD.

GAAP earnings per share rose 20% to $1.02, while non-GAAP EPS increased 4% to $1.47. Operating income was $4.4 billion GAAP and $6.2 billion non-GAAP. Oracle's operating cash flow reached $20.7 billion over the last 12 months, with free cash flow at $5.8 billion.

Oracle plans to double its data center capacity this year amid rising demand for AI services, and announced a 25% dividend increase to $0.50 per share. The company highlighted its growing role in AI data infrastructure and forecasted 15% revenue growth for fiscal 2026, supported by its expanding sales backlog and upcoming "Stargate" AI contracts.

AMD and Oracle Cloud Launch New Compute E6 Shapes with 5th Gen EPYC Processors

AMD announced that Oracle Cloud Infrastructure (OCI) is deploying its new Compute E6 Standard shapes powered by AMD’s 5th Gen EPYC processors. These processors deliver up to 2X improvement in cost-to-performance compared to the previous E5 generation, according to Oracle’s own testing.

The E6 shapes are built for both general-purpose and compute-intensive workloads, offering enhanced scalability and efficiency. This expansion strengthens AMD’s presence across major cloud providers, with over a thousand compute instances now using EPYC processors.

Dan McNamara, senior vice president and general manager of AMD’s Server Business, highlighted the rapid adoption of EPYC CPUs as a testament to AMD’s ability to provide partners with high-performance, competitive cloud solutions. Donald Lu, senior vice president at Oracle Cloud Infrastructure, emphasized the combined performance and cost benefits brought by the new E6 shapes.

OCI Compute E6 instances are now available in regions including Ashburn, Phoenix, Chicago, Frankfurt, and London, with further availability planned.

AMD’s 5th Gen EPYC CPUs are recognized for high thread density, memory bandwidth, I/O throughput, and built-in security features. These processors use advanced 3-4nm technology and are designed to deliver industry-leading performance across enterprise, AI, and cloud workloads.

More information can be found on AMD’s and Oracle’s official websites.

Oracle has announced the general availability of JDK 24, bringing new enhancements across the Java language, libraries, runtime, and security. This release introduces 24 major JDK Enhancement Proposals (JEPs), including preview features and incubator APIs, to improve Java's performance, security, and usability.

Key language improvements include support for primitive types in pattern matching, flexible constructor bodies, and module import declarations. The Stream API gains new capabilities, and enhancements in structured concurrency and scoped values improve multithreading efficiency. Performance updates include compact object headers, improved garbage collection, and ahead-of-time class loading for faster startup times.

Security advancements introduce quantum-resistant cryptographic algorithms, while the JDK’s overall size is reduced by removing outdated components like the Windows 32-bit x86 port. Other notable changes include new TLS configuration options, updated Unicode support, and enhancements to Java’s monitoring and debugging tools.

JDK 24 will be supported until September 2025, after which it will be replaced by JDK 25. Oracle acknowledges contributions from industry leaders like Amazon, Google, IBM, Red Hat, and independent developers, reinforcing Java’s position as a leading programming platform.

Oracle reported its fiscal 2025 third-quarter results, highlighting strong growth in cloud revenue and record sales contracts. Total revenue reached $14.1 billion, up 6% in USD and 8% in constant currency. Cloud revenue, combining Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS), grew 23% to $6.2 billion, with IaaS revenue increasing 49% to $2.7 billion and SaaS revenue rising 9% to $3.6 billion.

Remaining Performance Obligations (RPO) surged 62% year-over-year to $130 billion, reflecting Oracle’s expanding backlog of cloud contracts. The company signed over $48 billion in new sales agreements during the quarter, including deals with OpenAI, xAI, Meta, NVIDIA, and AMD. Oracle anticipates a 15% revenue increase in fiscal 2026 and expects further RPO growth with upcoming AI-related contracts.

GAAP earnings per share rose 20% to $1.02, while non-GAAP EPS increased 4% to $1.47. Net income reached $2.9 billion, up 22%, with a non-GAAP net income of $4.2 billion, up 6%. Operating cash flow for the past twelve months was $20.7 billion, with free cash flow at $5.8 billion.

Oracle is expanding its data center capacity, with demand for AI training and inferencing driving rapid GPU consumption growth. The company introduced the Oracle AI Data Platform, which integrates AI models like OpenAI’s ChatGPT with its database technology to enhance private data analysis.

The Board of Directors approved a 25% dividend increase to $0.50 per share, payable on April 23, 2025. Oracle continues to focus on cloud expansion, AI-driven solutions, and partnerships with major technology firms to drive future growth.

Oracle Reports Strong Fiscal Q3 2025 Performance, Cloud Revenue Surges
Oracle Achieves $130 Billion in Remaining Performance Obligations, Signaling Future Growth
Austin, TX – March 10, 2025 – Oracle Corporation (NYSE: ORCL) today announced its fiscal Q3 2025 results, highlighting record cloud growth and strong financial performance.

Key Financial Highlights
Remaining Performance Obligations (RPO): $130 billion (up 62% YoY in USD, 63% in constant currency).
Total Revenue: $14.1 billion (up 6% YoY in USD, 8% in constant currency).
Cloud Revenue (IaaS + SaaS): $6.2 billion (up 23% YoY in USD, 25% in constant currency).
Cloud Infrastructure (IaaS): $2.7 billion (+49% YoY in USD, +51% in constant currency).
Cloud Applications (SaaS): $3.6 billion (+9% YoY in USD, +10% in constant currency).
Operating Income (GAAP): $4.4 billion, 31% margin.
Operating Income (Non-GAAP): $6.2 billion, 44% margin (up 7% YoY in USD, 9% in constant currency).
Net Income (GAAP): $2.9 billion (up 22% YoY in USD, 27% in constant currency).
Earnings Per Share (GAAP): $1.02 (up 20% YoY in USD, 25% in constant currency).
Earnings Per Share (Non-GAAP): $1.47 (up 4% YoY in USD, 7% in constant currency).
Free Cash Flow: $5.8 billion over the last twelve months.
CEO & CTO Statements
Oracle CEO Safra Catz emphasized the company’s record-breaking cloud sales, stating:

“Oracle signed sales contracts exceeding $48 billion in Q3, pushing our RPO to $130 billion. This record-breaking performance underscores our growth momentum, with major cloud agreements secured with OpenAI, xAI, Meta, NVIDIA, and AMD. We anticipate our next fiscal year (starting June) will see a 15% revenue increase as RPO continues its strong growth.”

Oracle Chairman & CTO Larry Ellison highlighted Oracle’s AI and MultiCloud expansion:

“We are on track to double our data center capacity in 2025, driven by record-breaking demand for AI training and cloud infrastructure. GPU consumption for AI training surged 244% YoY, and demand for AI inferencing is rising exponentially. Our new Oracle AI Data Platform integrates OpenAI ChatGPT, xAI Grok, and Meta Llama, enabling secure AI-powered data analysis for enterprises.”

Strategic Growth & Cloud Expansion
AI & Cloud Expansion:

Oracle’s AI partnerships with OpenAI, xAI, Meta, NVIDIA, and AMD position it as a leading AI cloud provider.
GPU consumption for AI training skyrocketed 244% YoY.
Oracle Database MultiCloud revenue (from Microsoft, Google, and Amazon) grew 92% in three months.
AI inferencing demand surges, driving Oracle's next-gen AI cloud offerings.
Oracle AI Data Platform announced, enabling secure AI integration across enterprises.
Infrastructure & Data Center Growth:

Doubling data center capacity in 2025 to meet strong demand.
Cloud infrastructure (IaaS) revenue increased 49% YoY.
Dividend Announcement
Quarterly cash dividend: Increased by 25% to $0.50 per share (previously $0.40).
Payment Date: April 23, 2025.
Record Date: April 10, 2025.
Outlook & Growth Projections
Oracle anticipates:

15% revenue growth in fiscal 2026, driven by strong cloud adoption.
Continued RPO expansion, fueled by new AI and cloud contracts.
Ongoing MultiCloud collaboration with AWS, Google Cloud, and Microsoft Azure.

Oracle Corporation has filed an amended Form 8-K (8-K/A) with the U.S. Securities and Exchange Commission (SEC) on February 26, 2025, updating a previous filing regarding the retirement of Edward Screven, Executive Vice President and Chief Corporate Architect.

The original Form 8-K, filed on January 13, 2025, announced Screven’s retirement by the end of February 2025. However, the amended filing clarifies that he will remain employed by Oracle on a part-time basis as a Technical Advisor, reporting to CEO Safra Catz, effective March 1, 2025.

As part of this transition, the Compensation Committee of Oracle’s Board of Directors approved the following changes to Screven’s compensation:
- His salary will be reduced by 50% to $450,000 per year.
- 50% of his unvested restricted stock units (granted between 2021 and 2024) will be canceled.
- He will no longer participate in Oracle’s Executive Bonus Plan for the current fiscal year but may receive a discretionary bonus if a bonus pool is funded at the end of the fiscal year.

Oracle Corporation reports the issuance of $7.75 billion in debt securities. The notes include various maturities ranging from 2028 to 2065, with interest rates between floating and 6.125%. The issuance was conducted under an underwriting agreement with major financial institutions, including BofA Securities, Citigroup, Goldman Sachs, HSBC, and J.P. Morgan.

Oracle intends to use the proceeds primarily to repay existing debt, including notes maturing in 2025 and 2026, as well as to make scheduled payments on its Term Loan Credit Agreement. Any remaining funds may be allocated to general corporate purposes such as stock buybacks, dividends, debt repayment, and potential acquisitions.

On January 21, 2025, the Supreme Court of the State of Delaware, sitting en banc, affirmed a lower court's ruling in favor of Larry Ellison, Chairman and Chief Technology Officer of Oracle, and Safra Catz, Director and CEO of Oracle, in the derivative litigation related to Oracle's acquisition of NetSuite Inc. The court dismissed all claims brought by the plaintiffs.