Transforming from a legacy database company into a major AI compute provider, Oracle (ORCL)  stock has spiked over +30% in 2025 due to surging demand for its cloud and AI infrastructure services, massive new partnerships, and sharply upgraded revenue forecasts.With Oracle Cloud Infrastructure (OCI) and Oracle Cloud Applications (OCA) riding the AI boom, it’s certainly a worthy topic of whether it's time to buy ORCL as the company's  fiscal second quarter results approach after-market hours on Wednesday, Nov ...

Core Viewpoint - Oracle's financial performance in fiscal year 2025 shows significant growth in revenue and net profit, driven primarily by the expansion of cloud services and software licensing, despite rising operational costs [4][5][6]. Financial Performance - Total revenue for fiscal year 2025 reached $57.399 billion, an increase of 8.4% from $52.961 billion in the previous year, primarily due to a $4.8 billion increase in software licensing and cloud business revenue [4][5][6]. - Net profit for fiscal year 2025 was $12.443 billion, up 18.9% from $10.467 billion in the previous year, aided by reduced depreciation costs [4][6]. Revenue Breakdown - Cloud services and license support revenue grew from $39.383 billion to $44.029 billion, a year-on-year increase of 11.8%, accounting for 76.7% of total revenue [5][6]. - Cloud services revenue increased significantly, contributing $4.646 billion to overall revenue growth, with application and infrastructure cloud services contributing 26% and 74% respectively [9][15]. Cost Structure and Profitability - Operating expenses rose, with R&D expenses increasing by $0.945 billion, primarily due to employee-related costs, including stock-based compensation [4][8]. - Cost optimization strategies, such as a $0.703 billion reduction in intangible asset amortization and a $0.249 billion decrease in service costs, helped mitigate the impact of rising operational expenses [5][7]. Dividend Policy - The company increased its dividend per share from $1.36 to $1.70 in fiscal year 2025, reflecting a commitment to shareholder returns [14]. Cloud Computing Industry Trends - The global cloud computing market is expanding, with Oracle's cloud service revenue growing significantly due to new and renewed customer contracts [15][16]. - Oracle's cloud services revenue as a percentage of total revenue increased from 32% in fiscal year 2023 to 43% in fiscal year 2025, indicating a strong growth trajectory [16][18]. Strategic Initiatives - Oracle is integrating AI technologies into its cloud and infrastructure products to enhance automation and business efficiency, while also investing in key technology areas through strategic acquisitions [19].