Oracle(US:ORCL) Haitong Securities·2024-11-15 00:33Investment Rating - The investment rating for Oracle (ORCL.N) is "Outperform" [5] Core Views - The report highlights steady quarterly growth, driven by cloud and licensing business momentum. For FY2025 Q1, revenue reached $13.307 billion, a year-on-year increase of 6.86%, with net profit attributable to shareholders at $2.929 billion, up 21.03% year-on-year [5][8] - The cloud and licensing revenue for FY2025 Q1 was $11.389 billion, representing a 9.97% increase year-on-year and accounting for 85.59% of total revenue [5][8] - The report emphasizes that acquisitions will be a significant part of the company's strategy, with a current 29% stake in Ampere Computing Holdings LLC [6][8] Financial Performance Summary - For FY2023, total revenue was $49.954 billion, with a year-on-year growth of 17.7%. The projected revenues for FY2024, FY2025, FY2026, and FY2027 are $52.961 billion, $58.571 billion, $66.524 billion, and $77.187 billion, respectively, with expected growth rates of 6.0%, 10.6%, 13.6%, and 16.0% [7][8] - Net profit for FY2023 was $8.503 billion, with projections of $10.467 billion, $11.899 billion, $13.940 billion, and $16.544 billion for the following years, reflecting year-on-year growth rates of 26.6%, 23.1%, 13.7%, and 17.1% [7][8] - The report forecasts an EPS of $3.13 for FY2023, increasing to $3.80, $4.29, $5.03, and $5.97 in the subsequent years [7][8] Business Segment Breakdown - The cloud and licensing segment is expected to generate revenues of $44.464 billion in FY2024, with a year-on-year growth of 8.22%, and projected to reach $68.181 billion by FY2027 [10] - Hardware revenue is projected to decline slightly in FY2024 to $3.066 billion, with a year-on-year decrease of 6.35%, but expected to recover to $3.250 billion by FY2027 [10] - Service revenue is expected to be $5.431 billion in FY2024, with a slight decline of 2.91%, but projected to grow to $5.756 billion by FY2027 [10]