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].