Oracle(US:ORCL) Hua Er Jie Jian Wen·2025-06-11 22:08Core Viewpoint - Oracle's Q4 earnings exceeded expectations, with a strong outlook for cloud infrastructure revenue growth in FY2026, despite a slight miss in cloud infrastructure performance [2][8]. Financial Highlights - Q4 revenue reached $15.9 billion, a year-over-year increase of 11%, surpassing analyst expectations of $15.59 billion [3]. - Q4 operating profit was $7.04 billion, exceeding the forecast of $6.85 billion [4]. - Q4 operating margin stood at 44%, in line with analyst expectations [5]. - Adjusted EPS for Q4 was $1.70, above the anticipated $1.64 [6]. Cloud Business Performance - Q4 cloud infrastructure revenue (IaaS) was $3 billion, a significant year-over-year increase of 52%, slightly below the expected $3.07 billion [7]. - Overall cloud revenue (IaaS plus SaaS) grew by 27% year-over-year, reaching $6.7 billion, accounting for 42% of total revenue [7]. - CEO Safra Catz projected that cloud infrastructure revenue will grow over 70% in FY2026, compared to a 52% increase in the current quarter [7][9]. Future Outlook - The company anticipates FY2026 revenue to exceed $67 billion, surpassing analyst expectations of $65.18 billion [7]. - For Q1 FY2026, adjusted EPS is expected to be between $1.46 and $1.50, with revenue growth projected at 12% to 14% [7]. - The "Remaining Performance Obligations" (RPO) increased by 41% year-over-year to $138 billion, indicating strong future revenue visibility [8][9]. Strategic Initiatives - Oracle is focusing on becoming a leading provider of cloud computing services, particularly targeting clients in artificial intelligence [8]. - The company has formed a joint venture with OpenAI named "Stargate" to provide large-scale computing capabilities [8]. - Recent partnerships include collaborations with Cleveland Clinic and G42 for AI platforms in healthcare, and a commitment with IBM for cloud computing and consulting services [10]. Capital Expenditure - Capital expenditures surged to over $21 billion in FY2025, with expectations to exceed $25 billion in the new fiscal year [10].