Q3 2025 Oracle Corp Earnings Call Transcript
Key Points
- Oracle Corp (ORCL) reported its strongest booking quarter ever, adding $48 billion to its backlog, with a 63% year-over-year growth in RPO.
- The company achieved a milestone with its 101st cloud region coming online, indicating a strategic advantage in cloud infrastructure.
- Oracle Cloud Infrastructure (OCI) revenue grew by 51% in Q3, driven by record-level AI demand, outperforming hyperscaler competitors.
- Oracle's strategic back-office SaaS applications now have an annualized revenue of $8.6 billion, reflecting an 8% growth.
- The company increased its quarterly dividend by 25%, demonstrating a commitment to returning value to shareholders.
- Oracle Corp (ORCL) faced component delays that slowed cloud capacity expansion, although these are expected to ease in Q1 FY26.
- Software license revenues declined by 8% to $1.1 billion, indicating a potential challenge in this segment.
- The non-GAAP tax rate for the quarter was higher than expected, impacting EPS by $0.02.
- Currency headwinds negatively affected EPS by $0.04, highlighting exposure to foreign exchange fluctuations.
- The company's Q4 EPS guidance is negatively impacted by $0.03 due to losses recognized from an investment in another company.
Ladies and gentlemen, thank you for standing by. My name is Abby (inaudible), I will be your conference operator today. At this time, I would like to welcome everyone to the Oracle Corporation third quarter fiscal year '25 earnings conference call. (Operator Instructions) And I would now like to turn the conference over to Ken Bond, Head of Investor Relations. Mr. Bond, you may begin.
Thank you, Abby. Good afternoon, everyone, and welcome to Oracle's third quarter fiscal year 2025 earnings conference call. A copy of the press release and financial tables, which includes a GAAP to non-GAAP reconciliation and other supplemental financial information, can be viewed and downloaded from our Investor Relations website. Additionally, a list of many customers who purchased Oracle cloud services all went live on Oracle club recently will be available from our Investor Relations website. On the call today are Chairman and Chief Technology Officer, Larry Ellison; and Chief Executive Officer, Safra Catz.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
