Oracle(ORCL) - 2025 Q3 - Quarterly Results

Revenue Growth - Total quarterly revenues rose by 6% year-over-year to $14.1 billion[2] - Cloud services and license support revenues grew by 10% year-over-year to $11.0 billion[2] - Total revenues for Q3 fiscal 2025 reached $14.1 billion, a 6% increase compared to $13.2 billion in Q3 fiscal 2024[15] - Total revenues for the nine months ended February 28, 2025, were $41.496 billion, representing a 7% increase compared to $38.607 billion for the same period in 2024[23] - Total revenues for fiscal 2024 reached $53.41 billion, with a year-over-year growth of 12%[37] - The company anticipates continued growth in cloud services, projecting a revenue increase of 24% for the upcoming fiscal year[36] - The total revenue growth rate for fiscal 2025 is expected to be around 8%[36] Profitability - GAAP net income reached $2.9 billion, up 22% year-over-year[3] - Non-GAAP operating income increased by 7% year-over-year to $6.2 billion[3] - Operating income for Q3 fiscal 2025 was $4.35 billion, reflecting a 16% increase from $3.75 billion in the same quarter last year[15] - Net income for Q3 fiscal 2025 was $2.93 billion, up 22% from $2.40 billion in Q3 fiscal 2024[15] - Net income for the nine months ended February 28, 2025, was $9.016 billion, reflecting a 23% increase from $7.303 billion in the same period in 2024[23] - Diluted earnings per share for Q3 fiscal 2025 were $1.02, representing a 20% increase compared to $0.85 in Q3 fiscal 2024[15] - Diluted earnings per share for the nine months ended February 28, 2025, were $3.15, up 21% from $2.60 in the same period in 2024[23] Cloud Services Performance - Cloud Infrastructure (IaaS) revenue surged by 49% year-over-year to $2.7 billion[6] - Cloud services and license support revenues for the nine months ended February 28, 2025, were $32.33 billion, accounting for 78% of total revenues, an 11% increase year-over-year[20] - The company reported a 25% growth rate in cloud services for the fiscal year, indicating strong demand in this segment[36] - Constant currency revenue growth rates for cloud services were reported at 24%, indicating robust performance excluding foreign exchange impacts[38] Expenses and Investments - Total operating expenses for the nine months ended February 28, 2025, were $28.93 billion, a 3% increase from $28.01 billion in the prior year[20] - Research and development expenses for Q3 fiscal 2025 were $675 million, a 15% increase from $584 million in Q3 fiscal 2024[16] - Total stock-based compensation for Q3 fiscal 2025 was $1.19 billion, reflecting a 14% increase from $1.04 billion in Q3 fiscal 2024[16] - Capital expenditures rose significantly to $12,135 million, compared to $4,068 million in the previous year, indicating a focus on expansion and investment[31] Cash Flow and Liquidity - Net cash provided by operating activities increased to $14,664 million, up 16.5% from $12,592 million year-over-year[31] - Free cash flow for the trailing four quarters was reported at $11,270 million, reflecting a 19% growth compared to the previous year[33] - GAAP operating cash flow for Q3 Fiscal 2025 was $20,740 million, showing a 14% increase year-over-year[33] - The percentage of free cash flow as a percentage of net income was 48% for Q3 Fiscal 2025, down from previous quarters, suggesting a need for monitoring cash generation efficiency[33] - The company experienced a net increase in cash and cash equivalents to $17,406 million at the end of the period, compared to $9,481 million at the end of the previous year[31] Tax and Liabilities - The effective GAAP tax rate for Q3 fiscal 2025 was 14.9%, compared to 16.2% in Q3 fiscal 2024[16] - The effective GAAP tax rate for the first nine months of fiscal 2025 was 9.9%, compared to 8.0% for the same period in fiscal 2024[25] - Total liabilities decreased to $144.117 billion as of February 28, 2025, compared to $131.737 billion as of May 31, 2024[29] Stockholder Returns - A quarterly cash dividend of $0.50 per share was declared, reflecting a 25% increase[5] - Payments for dividends to stockholders totaled $3,340 million, slightly up from $3,289 million in the previous year, reflecting a commitment to returning value to shareholders[31] Non-GAAP Measures - The company utilizes non-GAAP financial measures to provide a clearer understanding of its financial performance, excluding stock-based compensation and acquisition-related expenses[41] - Stock-based compensation expenses are excluded from non-GAAP measures, although they are considered a key incentive for employees and will recur in future periods[41] - Amortization of intangible assets is excluded from non-GAAP measures due to its inconsistent nature and impact from acquisitions, which will also recur in future periods[42] - Acquisition-related expenses include personnel costs and business combination adjustments, which are excluded from non-GAAP measures to provide clarity on operating expenses[43] - Restructuring expenses, such as employee severance, are also excluded from non-GAAP measures to help investors understand their impact on total operating expenses[43]