Oracle (NYSE:ORCL) FY 2025 Annual General Meeting November 18, 2025 10:00 AM ET Company ParticipantsBrian Higgins - Senior VP and Corporate SecretaryJeff Henley - Executive Vice ChairClay Magouyrk - CEOMike Sicilia - CEOJeff HenleyGood morning, ladies and gentlemen. I'm Jeff Henley, Executive Vice Chair of the Board of Directors. I would like to welcome you to our annual meeting of stockholders. In accordance with the notice of the meeting, I call to order the 48th Annual Meeting of the Stockholders of Orac ...

Oracle (NYSE:ORCL) FY 2025 Annual General Meeting November 18, 2025 10:00 AM ET Company ParticipantsBrian Higgins - Senior VP and Corporate SecretaryJeff Henley - Executive Vice ChairClay Magouyrk - CEOMike Sicilia - CEOJeff HenleyGood morning, ladies and gentlemen. I'm Jeff Henley, Executive Vice Chair of the Board of Directors. I would like to welcome you to our annual meeting of stockholders. In accordance with the notice of the meeting, I call to order the 48th Annual Meeting of the Stockholders of Orac ...

Financial Data and Key Metrics Changes - Oracle's database is expected to grow by more than 8X over the next five years due to increased demand and strategic partnerships with major cloud providers [30][34] - The company has seen significant growth in its AI business, indicating a strong competitive position in the market [26][29] Business Line Data and Key Metrics Changes - Oracle is embedding AI features directly into its applications, with hundreds of AI features already live in production across its Fusion applications [35][36] - The AI Data Platform is being actively developed and utilized, enhancing the integration of data and AI capabilities for customers [24][29] Market Data and Key Metrics Changes - Oracle's AI offerings are broad and encompass various areas, including model training, inferencing, and reasoning, which positions the company uniquely in the market [29] - The company is experiencing a rapid acceleration in the adoption of its database services, particularly as they become available on other cloud platforms [33][34] Company Strategy and Development Direction - Oracle is focused on integrating AI into all its applications, making it easy for customers to adopt without additional costs or implementation efforts [36][39] - The company is leveraging its long history of data storage and management to enhance its AI capabilities, positioning itself as a leader in AI reasoning [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the AI inferencing business and its potential impact on Oracle's future [21][22] - The company is optimistic about the demand for its database services and AI applications, driven by ongoing technological advancements and customer needs [33][34] Other Important Information - Oracle's board of directors was successfully elected, and the appointment of Ernst & Young as the independent auditor for fiscal year 2026 was ratified [17][19] - The meeting included a discussion on the importance of forward-looking statements and the associated risks [20] Q&A Session Summary Question: When will AI inferencing become more material to Oracle's business? - Management highlighted that AI reasoning is expected to take off as Oracle integrates private data with powerful AI models, positioning the company well for future growth [22][24] Question: Why is Oracle winning more AI business than competitors? - Management attributed Oracle's success to strategic decisions made years ago, including the development of a non-blocking network and the ability to leverage private enterprise data for AI applications [26][28] Question: What is driving the expected 8X growth in Oracle's database? - Management explained that the growth is due to increased demand for Oracle Database services, especially as they become available on multiple cloud platforms [30][34] Question: How will Oracle succeed in getting customers to adopt AI and grow market share? - Management emphasized that AI features are built into applications, allowing for easy adoption and immediate value for customers without additional costs [35][39]

Core Viewpoint - Oracle's stock has declined from its previous highs, but concerns regarding concentration and debt are considered exaggerated by a Jefferies analyst [1] Group 1 - The stock price of Oracle has significantly decreased from its peak levels [1] - Jefferies analyst believes that the market's worries about Oracle's concentration risks are overstated [1] - The analyst also suggests that concerns about Oracle's debt levels are not as severe as perceived [1]

Core Insights - Oracle's annual conference name change from "Oracle Cloud World" to "Oracle AI World" reflects the company's strong expectations for AI's transformative potential [2] - Oracle's market capitalization has returned to the top ten global tech companies, driven by AI-driven business restructuring, with a stock price surge of 36% following the earnings report [2][4] - Key financial data revealed a significant increase in remaining performance obligations, reaching $455 billion, far exceeding market expectations of $178 billion [2] Group 1: AI Strategy and Market Position - Oracle is attempting to navigate the technology cycle by betting on the AI computing revolution [3] - The company has shifted its focus from traditional database management to embedding AI across all product lines, positioning AI as the core engine for future growth [4][10] - Oracle's cloud infrastructure (OCI) is designed to meet enterprise needs for high-performance computing and large-scale AI workloads, making it essential for major clients like Meta and OpenAI [7][9] Group 2: Market Demand and Competitive Landscape - The global demand for AI computing power has surged exponentially, with Oracle having stockpiled GPUs since 2021 to capitalize on this trend [5] - The cloud infrastructure spending is projected to reach $95.3 billion by Q2 2025, with Oracle positioned to benefit from supply-demand imbalances faced by competitors like AWS and Microsoft [6] - Oracle's multi-cloud strategy enhances its market reach and reduces switching costs for clients, while partnerships with companies like Google further expand its service offerings [8] Group 3: Product Innovations and Financial Performance - Oracle has launched the Oracle AI Database 26ai, which integrates AI capabilities directly into the database, addressing common challenges in enterprise AI applications [11][12] - The company reported a 12% year-over-year revenue growth to $14.9 billion, with cloud revenue increasing by 28% to $7.2 billion, indicating strong performance in its cloud segment [12] - Significant investments in infrastructure are planned, with estimates suggesting Oracle will invest billions in building data centers, aiming to enhance its AI capabilities [13]

Core Insights - A global survey reveals that Oracle Database customers are evolving their database strategies due to high costs, support challenges, and the need for advanced AI/ML capabilities [1][2][3] Customer Support Challenges - A majority of Oracle Database customers express frustrations with Oracle's support, with 63% citing high support costs and 87% indicating slow resolution times as problematic [2][3] - Only 16% of customers find their initial Oracle support engineer to be very skilled, leading to delays in issue resolution [2] Adoption of Third-Party Support - The survey indicates a growing trend towards third-party support, with 25% of organizations currently using such services and 30% considering it [3] - Key areas for third-party support include cloud database management (37%), data migration (36%), performance tuning (34%), and backup and recovery (32%) [3] Diversification of Database Strategies - Many Oracle Database customers are exploring alternative database options due to high costs (58%) and support gaps (31%), with 77% deploying new applications on non-Oracle databases in the past 36 months [6] - Popular alternatives include SQL Server (59%), MySQL (45%), PostgreSQL (40%), and Amazon RDS (28%) [6] Interest in AI/ML Capabilities - While 47% of respondents desire native support for large language models (LLMs), many are unaware that Oracle has already integrated LLM support in versions 19c and 23ai [7]

Core Insights - Ascent Wealth Partners reduced its stake in Oracle Corporation by 26,178 shares, with an estimated transaction value of $6.64 million, leaving them with 38,593 shares valued at $10.85 million [1][2] Company Overview - Oracle Corporation's stock price as of October 20, 2025, was $277.18, reflecting a 59.7% increase over the past year, significantly outperforming the S&P 500 by 43.55 percentage points [2][3] - The company has a market capitalization of $787.67 billion, with a trailing twelve months (TTM) revenue of $59.02 billion and a net income of $12.44 billion [3] Business Strategy - Oracle focuses on delivering enterprise software and cloud infrastructure, aiming to expand its cloud offerings and leverage its extensive installed base to drive recurring revenue and long-term client relationships [4] - The company generates revenue from cloud services, license support, hardware, and consulting, primarily serving large enterprises, government agencies, and educational institutions [6] Market Performance - Oracle's stock reached a 52-week high of $345.72 in September 2025, nearly tripling from its low in April 2025, indicating strong performance driven by success in the artificial intelligence sector [8][9] - The AI market is projected to grow from $255 billion in 2025 to $1.7 trillion by 2031, providing a favorable environment for Oracle's business [10]

Core Insights - CCM Investment Advisers has initiated a new position in Oracle Corporation valued at $13.99 million as of September 30, 2025, acquiring approximately 49,757 shares during Q3 2025 [1][2] - This new position represents 1.4% of CCM Investment Advisers' 13F reportable assets under management [3] Company Overview - Oracle Corporation is a global leader in enterprise information technology, providing a comprehensive suite of cloud software, database, and infrastructure solutions [5][7] - As of October 9, 2025, Oracle shares were priced at $296.96, with a revenue of $59.02 billion and a net income of $12.44 billion for the trailing twelve months (TTM) [4][3] Financial Performance - Oracle's revenue increased by 12% year over year in its fiscal first quarter ending August 31, 2025 [12] - The company's remaining performance obligations (RPO), which indicate future revenue from customer contracts, surged by 359% year over year to $455 billion [12] Market Context - Oracle's stock has appreciated over 75% through October 10, 2025, driven by increased demand from AI businesses [10] - The company's role in overseeing U.S. operations for TikTok may have influenced CCM's decision to invest, especially after a deal was approved by the Trump Administration in September [11] Investment Considerations - Despite strong business growth, Oracle's price-to-earnings ratio is approaching 70, indicating that the stock may be considered expensive [13]

Company Overview - Oracle Corporation is a leading global provider of enterprise software, cloud services, and infrastructure solutions, focusing on integrated platforms that support mission-critical operations for large organizations [6] - The company offers a broad portfolio of cloud software applications, infrastructure technologies, database solutions, and hardware products, with key offerings including Oracle Fusion Cloud, NetSuite, and Oracle Database [5] - As of October 3, 2025, Oracle's revenue for the trailing twelve months (TTM) was $59.02 billion, with a net income of $12.44 billion and a dividend yield of 0.62% [4] Recent Developments - WealthBridge Investment Counsel Inc. reduced its stake in Oracle by 22,055 shares, valued at approximately $5.62 million, resulting in a total holding of 56,200 shares worth $15.81 million as of September 30, 2025 [2][3] - Following the sale, Oracle's position represented 4.9% of WealthBridge's 13F reportable assets under management (AUM) [3] Market Performance - Oracle shares have significantly outperformed the stock market in 2025, with a price increase of 75%, making it one of the best-performing stocks in the S&P 500 [10] - As of October 3, 2025, Oracle shares were priced at $286.14, reflecting a 71.5% increase over the past year [3][4] Strategic Positioning - Oracle is positioned as a key beneficiary of the artificial intelligence (AI) revolution, with ongoing investments in building data centers globally to support AI model training and deployment [11] - The company's current market capitalization stands at $838 billion, placing it as the 11th-largest company in America and nearing the $1 trillion club [10]

Core Insights - Larry Ellison, co-founder of Oracle Corporation, has a net worth of $349.5 billion as of October 2, making him the second-richest person globally [2] - Ellison's wealth primarily stems from his 40% stake in Oracle, alongside investments in Tesla and real estate [6] - Oracle's revenue grew by 12% in the first quarter of fiscal 2026, and its share price increased by over 74% for the year as of October 2 [7] Group 1: Larry Ellison's Background - Ellison's early life is characterized as a "classic rags-to-riches story," having been raised by his aunt and uncle in Chicago and dropping out of two colleges [3] - He demonstrated a natural talent for programming, which led him to work with tech companies like Ampex and Amdahl, where he contributed to a CIA project that inspired his entrepreneurial journey [4] Group 2: Oracle Corporation - In 1977, Ellison co-founded Software Development Laboratories, which later became Oracle Corporation, known for its popular enterprise software, particularly Oracle Database [5] - The company's strong performance and Ellison's significant ownership stake have been key factors in his wealth accumulation [6]