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Oracle(ORCL) - 2025 Q2 - Quarterly Results
ORCLOracle(ORCL)2024-12-09 21:13

Earnings and Profitability - Q2 GAAP Earnings per Share increased 24% to 1.10,Non−GAAPEarningsperShareincreased101.10, Non-GAAP Earnings per Share increased 10% to 1.47[2] - Q2 GAAP operating income was 4.2billion,withaGAAPoperatingmarginof304.2 billion, with a GAAP operating margin of 30%[3] - Q2 Non-GAAP operating income was 6.1 billion, up 10% in both USD and constant currency[3] - Operating income for Q2 fiscal 2025 rose to 4,220million,upfrom4,220 million, up from 3,620 million in Q2 fiscal 2024, a 17% increase[14] - Net income for Q2 fiscal 2025 grew by 26% to 3,151millionfrom3,151 million from 2,503 million in Q2 fiscal 2024[14] - Operating income for the six months ended November 30, 2024 rose by 19% to 8,211million[17]−NetincomeforthesixmonthsendedNovember30,2024increasedby248,211 million[17] - Net income for the six months ended November 30, 2024 increased by 24% to 6,080 million[17] - Diluted earnings per share for Q2 fiscal 2025 increased by 24% to 1.10from1.10 from 0.89 in Q2 fiscal 2024[14] - Operating income rose by 19% to 8.211billionin2024from8.211 billion in 2024 from 6.918 billion in 2023[20] - Net income increased to 6.08billionin2024from6.08 billion in 2024 from 4.92 billion in 2023[20] - Diluted earnings per share grew by 24% to 2.13in2024from2.13 in 2024 from 1.75 in 2023[20] - Net income for the six months ended November 30, 2024, was 6,080million,comparedto6,080 million, compared to 4,923 million in the same period in 2023[26] Revenue Growth - Q2 Total Revenue reached 14.1billion,up914.1 billion, up 9% in both USD and constant currency[2] - Q2 Cloud Revenue (IaaS plus SaaS) grew 24% to 5.9 billion[2] - Q2 Cloud Infrastructure (IaaS) Revenue surged 52% to 2.4billion[2]−Q2CloudApplication(SaaS)Revenueincreased102.4 billion[2] - Q2 Cloud Application (SaaS) Revenue increased 10% to 3.5 billion[2] - Total revenues for Q2 fiscal 2025 increased by 9% to 14,059millioncomparedto14,059 million compared to 12,941 million in Q2 fiscal 2024[14] - Cloud services and license support revenues increased by 11% to 21,324millionforthesixmonthsendedNovember30,2024[17]−Totalrevenuesincreasedby821,324 million for the six months ended November 30, 2024[17] - Total revenues increased by 8% to 27.366 billion in 2024 compared to 25.394billionin2023[20]−CloudservicesrevenueforQ2Fiscal2025reached25.394 billion in 2023[20] - Cloud services revenue for Q2 Fiscal 2025 reached 5.93 billion, showing a 25% year-over-year growth[32] - Total revenues for Q2 Fiscal 2025 were 14.059billion,an814.059 billion, an 8% increase compared to the previous year[32] - Cloud services and license support revenues grew by 12% in Q2 Fiscal 2025, reaching 10.806 billion[32] - Constant currency revenue growth for cloud services was 24% in Q2 Fiscal 2025[32] - Applications cloud services and license support revenues grew by 7% in Q2 Fiscal 2025, reaching 4.784billion[32]−Infrastructurecloudservicesandlicensesupportrevenuesincreasedby124.784 billion[32] - Infrastructure cloud services and license support revenues increased by 12% in Q2 Fiscal 2025, totaling 6.022 billion[32] Cloud Services - Q2 Cloud Revenue (IaaS plus SaaS) grew 24% to 5.9billion[2]−Q2CloudInfrastructure(IaaS)Revenuesurged525.9 billion[2] - Q2 Cloud Infrastructure (IaaS) Revenue surged 52% to 2.4 billion[2] - Q2 Cloud Application (SaaS) Revenue increased 10% to 3.5billion[2]−OracleCloudInfrastructuresignedanagreementwithMetaforAICloudInfrastructurecollaboration[5]−CloudservicesrevenueforQ2Fiscal2025reached3.5 billion[2] - Oracle Cloud Infrastructure signed an agreement with Meta for AI Cloud Infrastructure collaboration[5] - Cloud services revenue for Q2 Fiscal 2025 reached 5.93 billion, showing a 25% year-over-year growth[32] - Cloud services and license support revenues grew by 12% in Q2 Fiscal 2025, reaching 10.806billion[32]−Applicationscloudservicesandlicensesupportrevenuesgrewby710.806 billion[32] - Applications cloud services and license support revenues grew by 7% in Q2 Fiscal 2025, reaching 4.784 billion[32] - Infrastructure cloud services and license support revenues increased by 12% in Q2 Fiscal 2025, totaling 6.022billion[32]OperatingExpensesandMargins−Q2GAAPoperatingincomewas6.022 billion[32] Operating Expenses and Margins - Q2 GAAP operating income was 4.2 billion, with a GAAP operating margin of 30%[3] - Q2 Non-GAAP operating income was 6.1billion,up106.1 billion, up 10% in both USD and constant currency[3] - Total operating expenses for the six months ended November 30, 2024 increased by 4% to 19,155 million[17] - Operating margin improved to 30% in 2024, up from 27% in 2023[20] - Stock-based compensation for Q2 fiscal 2025 was 1,170million,a141,170 million, a 14% increase from 1,029 million in Q2 fiscal 2024[14] - Amortization of intangible assets for Q2 fiscal 2025 decreased by 22% to 591millionfrom591 million from 755 million in Q2 fiscal 2024[14] Cash Flow and Capital Expenditures - Free cash flow for Q2 fiscal 2025 was 9,542million,adecreaseof69,542 million, a decrease of 6% compared to the prior year[29] - GAAP operating cash flow for Q2 fiscal 2025 was 20,287 million, representing a 19% growth over the prior year[29] - Operating cash flow as a percentage of net income for Q2 fiscal 2025 was 175%[29] - Free cash flow as a percentage of net income for Q2 fiscal 2025 was 82%[29] - Net cash provided by operating activities increased to 8,731millioninthesixmonthsendedNovember30,2024,from8,731 million in the six months ended November 30, 2024, from 7,117 million in the same period in 2023[26] - Capital expenditures for the six months ended November 30, 2024, were 6,273million,upfrom6,273 million, up from 2,394 million in the same period in 2023[26] - Proceeds from issuances of senior notes and term loan credit agreements, net of issuance costs, were 11,837millioninthesixmonthsendedNovember30,2024[26]−Repaymentsofseniornotesandtermloancreditagreementswere11,837 million in the six months ended November 30, 2024[26] - Repayments of senior notes and term loan credit agreements were 9,700 million in the six months ended November 30, 2024[26] - Cash and cash equivalents at the end of the period were 10,941million,upfrom10,941 million, up from 8,244 million in the same period in 2023[26] Regional Performance - Americas region contributed 8.933billiontototalrevenuesinQ2Fiscal2025,a78.933 billion to total revenues in Q2 Fiscal 2025, a 7% increase[33] - Europe/Middle East/Africa region revenues grew by 6% in Q2 Fiscal 2025, reaching 3.381 billion[33] - Asia Pacific region revenues increased by 3% in Q2 Fiscal 2025, totaling 1.745billion[33]AssetsandLiabilities−Totalcurrentassetsincreasedto1.745 billion[33] Assets and Liabilities - Total current assets increased to 23.503 billion in 2024 from 22.554billionin2023[23]−Property,plant,andequipment,netroseto22.554 billion in 2023[23] - Property, plant, and equipment, net rose to 26.432 billion in 2024 from 21.536billionin2023[23]−Totalliabilitiesdecreasedto21.536 billion in 2023[23] - Total liabilities decreased to 134.247 billion in 2024 from 131.737billionin2023[23]−Stockholders′equityincreasedto131.737 billion in 2023[23] - Stockholders' equity increased to 14.236 billion in 2024 from 9.239billionin2023[23]RemainingPerformanceObligations−Q2TotalRemainingPerformanceObligationsrose499.239 billion in 2023[23] Remaining Performance Obligations - Q2 Total Remaining Performance Obligations rose 49% to 97 billion[2] AI and GPU Consumption - Q2 GPU consumption increased 336%, driven by record AI demand[5] - Oracle Cloud Infrastructure signed an agreement with Meta for AI Cloud Infrastructure collaboration[5] Hardware Revenues - Hardware revenues declined by 6% in Q2 Fiscal 2025, totaling $728 million[32]