Oracle's Fiscal Q2 2025 Performance - Oracle's revenue increased by 9% YoY to 14.06billion,slightlybelowthe14.1 billion analyst consensus [2] - Cloud revenue grew by 24% YoY to 5.9billion,withcloudinfrastructurerevenuesurging522.4 billion and cloud application revenue rising 10% to 3.5billion[3]−AdjustedEPSincreasedby101.47, just below the 1.48analystconsensus[6]CloudInfrastructureandAIDemand−OracleCloudInfrastructure(OCI)consumptionrevenuesoaredby5297 billion, with cloud RPO jumping nearly 80% and representing nearly three-fourths of total RPO [6] - Oracle expects to recognize about 39% of its RPO as revenue in the next 12 months [6] - The company forecasts fiscal Q3 revenue growth of 7% to 9%, with cloud revenue growing by 23% to 25% and adjusted EPS rising by 4% to 6% [7] - Full-year cloud infrastructure revenue is expected to grow by more than 50% [7] Capital Expenditures and Financial Position - Oracle ramped up its capex to 4billionfrom2.3 billion in fiscal Q1, leading to negative free cash flow of 2.7billioninthequarter[8]−Thecompanyhasnetdebtof77.4 billion at the end of fiscal Q2 [13] Market Valuation and Competitive Position - Oracle trades at a forward P/E of just under 28 based on current fiscal-year analyst estimates [11] - The company's high-single-digit revenue growth and 10% earnings growth are notable, but its significant debt and negative free cash flow raise concerns [13]
Oracle(ORCL) The Motley Fool·2024-12-14 09:15