While Oracle’s (NYSE: ORCL ) Q3 F2025 results were read as a mix bag by the market, we think the company is positioning itself to launch into the stratosphere. On the back of on-prem to cloud shift, ProjectHWI is a combination of human and algorithmic intelligence looking at obvious, but missed opportunities across sectors.Our calls are generally long term and based on rigorous analysis behind them.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentio ...

Brings Oracle AI to the pit wall to increase efficiency of sporting regulation reviewsStandardizes on Oracle Virtualization from the factory to the track to increase flexibility, streamline IT infrastructure, and simplify training AUSTIN, Texas and MILTON KEYNES, England, March 13, 2025 /PRNewswire/ -- Oracle Red Bull Racing, the multiple championship winning Formula One team, is expanding its use of Oracle Cloud and AI technologies on and off the track as the team kicks off the 2025 Formula One (F1) season ...

Core Insights - The article discusses Oracle Corp's (ORCL) second quarter earnings report from December 2024, highlighting an unusual miss on both top and bottom lines [1] Group 1: Company Performance - Oracle Corp reported a miss on earnings expectations, which is atypical for the company [1] - The analysis includes a review of the financial metrics and performance indicators from the earnings report [1] Group 2: Analyst Background - The author is an Associate Professor in Finance and Corporate Governance with a PhD in Finance and has six years of investing experience in Indian and US equities [1] - The author also engages in research on various financial topics including Behavioral Finance and M&A [1]

Core Insights - Oracle Financial Services is enhancing its Investigation Hub Cloud Service with new AI capabilities aimed at automating investigative processes to combat financial crime more effectively [1][2] - The introduction of generative AI agents allows for improved efficiency in reviewing suspicious activities, enabling investigators to focus on critical leads while reducing manual workload [1][4] Group 1: AI Capabilities and Benefits - The new agentic AI capabilities represent a significant shift in financial crime investigations, allowing for automated evidence collection and decision-making support [2][3] - These AI agents can analyze alert information and generate comprehensive narratives, which aids investigators in conducting thorough analyses and making informed decisions [5][4] Group 2: Industry Challenges - Financial institutions are under increasing pressure to identify and address sophisticated financial crime schemes while navigating regulatory scrutiny [3] - Traditional investigative methods are often slow and resource-intensive, highlighting the need for more efficient solutions [3] Group 3: Oracle's Positioning - Oracle's financial crime and compliance management solutions aim to enhance the predictability, reliability, and credibility of financial investigations through the use of generative AI [6] - The company provides a comprehensive suite of solutions for various financial services, empowering institutions to drive customer insight and comply with regulations [6]

This account is managed by Noah's Arc Capital Management. Our goal is provide Wall Street level insights to main street investors. Our research focus is mainly on 20th century stocks (old economy) undergoing a 21st century transformation, but occasionally we'll write on companies that help transform 20th century firms as well. We look for innovations in a business model that will cause a stock to change dramatically. Associated with SA contributor Elijah Buell.Analyst’s Disclosure: I/we have a beneficial lo ...

Oracle (ORCL) delivered a concerning performance in its third-quarter fiscal 2025 results, missing analyst expectations on both earnings and revenue fronts. The company reported non-GAAP earnings of $1.47 per share, missing the Zacks Consensus Estimate by 0.68%, while revenues of $14.13 billion lagged estimates by 1.59%. Though Oracle attempted to spotlight continued momentum in its Oracle Cloud Infrastructure (“OCI”) business, the numbers tell a different story — one of a company struggling to meet the lof ...

Vladimir Dimitrov, CFA is a former strategy consultant within the field of brand and intangible assets valuation. During his career in the City of London he has been working with some of the largest global brands within the technology, telecom and banking sectors. He graduated from the London School of Economics and is interested in finding reasonably priced businesses with sustainable long-term competitive advantages.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of ...

Revenue Composition - The cloud and license business accounted for 85% of total revenues on a trailing 4-quarter basis [93]. - Cloud services revenues represented 44% and 43% of total revenues for the three- and nine-month periods ended February 28, 2025, respectively, compared to 38% and 37% for the same periods in 2024 [95]. - The hardware business represented 5% of total revenues on a trailing 4-quarter basis [99]. - The services business accounted for 10% of total revenues on a trailing 4-quarter basis [103]. - The cloud and license business accounted for 86% of total revenues in the third quarter of fiscal 2025, up from 84% in the prior year [116]. Revenue Growth - Total revenues increased by $850 million (6%) in the third quarter and $2.8 billion (7%) in the first nine months of fiscal 2025 compared to the prior year periods [117]. - Cloud and license revenues rose by $917 million (8%) in the third quarter and $3.1 billion (10%) in the first nine months of fiscal 2025, while hardware revenues decreased by $51 million (7%) and $138 million (6%) respectively [117]. - The Americas region contributed 75% to total revenue growth in the third quarter and 74% in the first nine months of fiscal 2025, while the EMEA region contributed 18% [117]. - The Americas region contributed 74% of the cloud services revenue growth in Q3 2025, while EMEA and Asia Pacific contributed 20% and 6%, respectively [125]. Operating Expenses - Total operating expenses increased by $242 million (3%) in the third quarter and $920 million (3%) in the first nine months of fiscal 2025, primarily due to higher cloud services and license support expenses [118]. - Total expenses for the cloud and license business increased by $461 million (11%) in Q3 2025 and $1.4 billion (12%) in the first nine months, primarily due to higher infrastructure and employee-related expenses [126]. - Total expenses for the hardware business decreased by $27 million (10%) in Q3 2025 and $143 million (17%) in the first nine months, aligning with lower revenues [131]. - Total expenses decreased by $91 million (down 8%) in Q3 2025 and $257 million (down 7%) in the first nine months compared to the prior year [135]. Profit Margins - In constant currency, total operating margin increased to 31% in the third quarter of fiscal 2025, up from 28% in the prior year [116]. - Total margin for the cloud and license business was $7.629 billion (63% margin) in Q3 2025, reflecting a 6% increase from the prior year [130]. - Total margin increased by 40% in Q3 2025 and 13% in the first nine months compared to the prior year, with total margin percentage rising to 20% [134]. - Total margin for the hardware business was $450 million (64% margin) in Q3 2025, showing a 5% decrease from the prior year [130]. Research and Development - Research and development investments are anticipated to improve existing products and develop new offerings across all business segments [100]. - Research and development expenses increased by $181 million (8%) in the third quarter and $517 million (8%) in the first nine months of fiscal 2025 compared to the prior year [118]. - The company plans to continue significant investments in research and development to maintain its competitive position [138]. Acquisitions and Investments - The company has invested billions in acquisitions to enhance its corporate strategy and may continue to do so as opportunities arise [104]. - The total carrying value of investments in Ampere Computing Holdings LLC was $1.5 billion as of February 28, 2025 [107]. - The company believes its current cash, cash equivalents, and marketable securities will be sufficient to meet working capital and capital expenditure requirements, as well as fund future acquisitions and dividend payments [175]. Cash Flow and Capital Management - Cash, cash equivalents, and marketable securities increased by 67% to $17.8 billion as of February 28, 2025, compared to $10.7 billion as of May 31, 2024 [160]. - Net cash provided by operating activities was $14.7 billion in the first nine months of fiscal 2025, a 16% increase from $12.6 billion in the same period of fiscal 2024 [163]. - Net cash used for investing activities increased by 173% to $12.5 billion in the first nine months of fiscal 2025, compared to $4.6 billion in the same period of fiscal 2024 [163]. - Free cash flow decreased by 53% to $5.8 billion in the trailing four quarters ended February 28, 2025, compared to $12.3 billion in the previous year [169]. Debt and Interest - Interest expense for the third quarter of fiscal 2025 was $892 million, a 2% increase compared to $876 million in the same period of fiscal 2024, primarily due to the issuance of $14.0 billion in senior notes [151]. - Interest income increased by 22% to $135 million in the third quarter of fiscal 2025, compared to $111 million in the same period of fiscal 2024 [154]. - During the first nine months of fiscal 2025, the company issued $14.0 billion of senior notes with various maturity dates, including $1.75 billion of 6.00% senior notes due August 2055 [172]. Stock-Based Compensation - Stock-based compensation expenses totaled $1.198 billion in the third quarter and $3.374 billion in the first nine months of fiscal 2025, reflecting an increase from the prior year [122]. - The cumulative potential dilution from stock-based awards since June 1, 2021, has been an annualized rate of 1.7% per year, with a maximum potential dilution of 5.8% as of February 28, 2025 [177]. - The company’s stock repurchase program has substantially offset the dilutive effect of its stock-based compensation program in recent years [177]. Tax and Other Income - Provision for income taxes increased to $512 million in the third quarter of fiscal 2025, a 10% increase from $464 million in the same period of fiscal 2024 [158]. - Non-operating income, net increased by $111 million in the first nine months of fiscal 2025, primarily due to a $76 million decrease in foreign currency losses and a $38 million increase in interest income [156].

Shares of Oracle (ORCL -3.22%) are sliding on Tuesday. The stock lost 3.2% as of 2:45 p.m. ET today and was down as much as 7.5% earlier in the day. The drop comes as the S&P 500 declined 0.5% and the Nasdaq Composite gained 0.2%.The tech company reported mixed quarterly results that fell short of expectations while providing ambitious long-term projections.Mixed earnings reportOracle announced third-quarter earnings of $1.47 per share on sales of $14.1 billion. Both figures missed Wall Street estimates of ...

Core Insights - Oracle Corporation reported a strong close to fiscal Q3 '25 with Remaining Performance Obligations (RPO) growing to $130 billion, indicating that demand continues to outstrip supply of data center capacity [1] Company Performance - The growth in RPO suggests robust demand for Oracle's services, particularly in the data center segment, which is facing challenges due to limited compute capacity [1] Analyst Background - The analysis is supported by insights from a buy-side equity analyst with over 5 years of industry experience, who has a macro-value-oriented approach to investment analysis [1]